BUSINESS &
FINANCE
Optimism in Synthetic Fibers Chemstrand reports on " a y e a r of p r o g r e s s " w h i l e industry production sets a first-quarter record V^HEMSTRANHD'S first annual report, issued last month, reveals earnings of $12.2 million for last year compared to $14.8 million for 1955. No sales data or balance sheet were supplied in the report, but such factual information as was made available hinted at the good profits t o be made in nylon operations. The decline in net for 1956 is blamed on a reduction of approximately 15 rA in nylon prices in January 1956. "Greatly increased sales of both nylon and Acrilan were not enough to overcome this drastic nylon price cut, but we feel our 1956 earnings were reasonably satisfactory,*' Chemstrand points out. And it notes that nylon prices were raised last December b y an average of about 5 % . > Acrilan Steps Up. Chemstrand's earlier difficulties with Acrilan evidently have been resolved. The company started 1956 with less than 16% of its Decatur, Ala., plant capacity of 30 million pounds in use, b u t finished u p the year nearly at capacity. T h e company reached plant capacity in March of this year, and now plans to expand capacity to 4 5 million pounds a year. Chemstrand attributes improved Acrilan performance to consumer acceptance of blankets and jersey made of the acrylic fiber. Chemstrand expects sales of Acrilan jersey fabrics this
year to be even better as the company plugs a nonshrink, easy wash, no iron line for childrens' wear and the women's blouse and men's sport shirt fields. Also contributing to Acrilan's success is 100% carpeting, introduced in early 1957. Though the company is still filling pipelines on this product, Acrilan as a wet spun fiber found it relatively easy to produce 15 denier staple, while Orion, which is solvent spun, has difficulty in securing these deniers. Chemstrand admits having little to go on as yet in predicting consumer acceptance, and privately expects Orion to offer stiff competition sooner or later in the carpeting market. • Boosting Nylon Capacity. Chemstrand's long profit is made in nylon. The Pensacola, Fla., nylon plant started 1956 with capacity of 50 million pounds, b u t was expanded to 59 million during the year. Full capacity production was the rule through the year, according to the company, and at the end of 1956, nylon production was u p 2 4 % over 1955 and entire plant capacity was being used. Expansion of plant facilities to a capacity of 114 million pounds by 1958 is now under way. Chemstrand is proud of its Chemnyle process for dyeing filament nylon. The company claims that "at last nylon
can be evenly dyed in fast colors, a goal toward which many in the industry have long been working." • Current Business. First-quarter output of noncellulosic synthetic fibers reached record highs, according to Textile Organon. Filament yarn production amounted to 79.2 million pounds, an all-time quarterly record which was about 2 5 % ahead of a year ago; staple and tow output gained about 2 0 % over the record fourth quarter of last year to 41.9 million pounds. Thus full year output could be estimated at 500 million pounds compared to 400 million pounds last year, excluding textile glass fiber which contributed 96.5 million pounds last year. Chemstrand states in its a n n u a l report, "By 1965, it is authoritatively predicted, annual production of chemical fibers will pass the billion pound mark; and by 1975, economists foresee a demand of 4 billion pounds a year." • Financial Picture. Chemstrand's sales approached the $100 million m a r k and can b e estimated at $95 million for
Process Industries Trends RAYON
md S t a p l e Fibers
Consumption of Yoi Millions o f Pounds
Sourte: U. S. Depl of Commerce
Yarn
^S.
i^
X>^
A
t i l l
59.4
31.0
Staple Fiber 1 1 » 1
Mav
1 1 1 1 1 » 1 1 1 1 1 » 1 * I 1 1
WOOL Consumption, Scoured Basis, A p p o r e l & C o r p e t , Millions of Pounds
,s
An^7^
EMPLOYMENT (Chemicals) THOUSANDS OF WORKERS
Source: U. S. Department of l a b o r Source: (J 5. Depî. of Commerce
'834.7 May CHEMICALS & ALLIED PRODUCTS 650 350
COTTON Apr. -316.1
300
Source U S~ Depl of Commerce
INDUSTRIAL O R G A N I C
200 Apr. • 107.7
INDUSTRIAL I N O R G A N I C
iooi
"TrriVJi < l· I^-I
1955
1956
1957
I I 1
JULY
15,
1957
C&EN
75
BUSINESS & FINANCE
Fastaccurate
SULFUR analysis DIETER T-DETROIT Sulfur Determinator T h e Dietert-Detroit Sulfur Determinator features an e x t r e m e l y simple direct-reading burette. No involved measuring or computing. Provides fast, accurate analysis of sulfur content in scores of materials. Low cost, durable, easily maintained. Used in company laboratories and institutions of every description for over 18 years. Dietert-Detroit Sulfur Determinator No. 3104, with combustion Furnace.
Send for FREE Catalog! 16 page Dietert-Detroit Catalog illustrates and describes both Sulfur and Carbon Determinators and complete line of equipment and supplies.
1956. First quarter results are understood to be very good, not only with respect to sales but especially profits. Nylon has an economic history of over 17 years; current profit returns are still good enough to invite considerable competitive pressures from now on. Newer producers, along with expansion by D u Pont and Chemstrand, will raise industry capacity, b u t d e m a n d is expected to balance new supply. As an indication of new capacity, Textile Or canon places industry capacity at 537 million pounds of noncellulosic man-made fibers as of March 1957 and at 763 million by December 1958. Most of this capacity is nylon of one form or another, although acrylic fiber capacity is building rapidly. Chemstrand invested $30 million at all locations for new plant and equipment, research, engineering, and marketing facilities last year. Total plant investment at cost plus working capital mav be estimated at $200 million.
By inference, a n d assuming sales of $95 million, C h e m s t r a n d earned about $25 million before taxes last year, or 25% of sales; in terms of total investment, however, pretax earnings amount to only 12 1 / 2 < ^> rather modest u n d e r the circumstances. I t is quite likely, however, that current earning power is substantially higher—enough so to bring the return above 1 5 % on the total investment. Also w o r t h y of note is the disclosure in the annual report that operating costs e q u a l 5 0 % of sales, with t h e other half of the sales dollar covering interest, depreciation, and earnings. • Champion P a p e r ' s sales and earnings moved to new highs in the company's fiscal year ended March 31. Sales of $168.4 million were up 9% over the previous year, with t h e bulk of t h e increase taking place during the first half of the year followed by a lower rate of
C & E N I n d e x o f Stock Prices JAN.
'54 OPENING PRICES=100
PETROLEUM HARRY W, DIETERT CO^
ESSÎPMHÎT
•265.0 9330 ROSELAWN
Advances
DETROIT 4 , MICH.
N u m b e r 15 i n in Chemistry
200
Series
edited by t h e staff of Industrial and Engineering Chemistry
187.9
SEC Composite Index 150
PHYSICAL PROPERTIES OF CHEMICAL COMPOUNDS A systematic tabular presentation of accurate data oil tlie physical properties of 51 1 organic cyclic compounds compiled by R. R. Dreisbach of the Dow Chemical Co. These comprehensive and basic data were determined for specially prepared, high purity compounds. In addition to the precisely measured properties the author has calculated new values for many constants based upon his new experimental values.
100
4th Qtr.(lS56)
1st Qtr.
2nd Qtr.
3rd Qtr.(1957)
RUBBER ,280.0
200
, 187.9 S E C C o m p o s i t e Index
523 pages p l u s index cloth bound-—S5.85 per copy order from: Special Publication Dept. American C h e m i c a l Society 1155 S i x t e e n t h S t r e e t , N . W . W a s h i n g t o n 6, D. C .
76
C&EN
JULY
15,
1957
150
100
4th Qtr. (1956)
1st Qtr.
2nd Qtr.
3rd Qtr.(195?)
BUSINESS & FINANCE gain in the second half. N e t income came t o $14.3 million ($3.14 a s h a r e ) , also u p 9%. Champion plans capital spending of $ 2 0 million this year. Company m a n a g e m e n t is looking for ward t o reasonably good business, al though it does not expect market con ditions will b e as favorable as a year ago. Despite slackening d e m a n d , mills have continued to operate a t a satis factory rate, it says, a n d future plan ning is being carried o u t "with a highly optimistic view." • Market Comment: "In view of t h e substantial declines in prices of many chemical company stocks during t h e past year, it is doubtful that further serious deterioration will occur," a c cording to Harris, U p h a m & Co. • Polymer Corp., Reading, Pa., pro ducer of nylon a n d Teflon shapes a n d tubing, plans t o sell 70,000 shares of its class A common stock. It will u s e the proceeds for working capital a n d t o retire bank loans, b u y equipment, and build a n e w development labo ratory. • Tracerlab will offer 200,000 shares of common stock to the public so that it can raise money to reduce its t r a d e a n d other current debts a n d also discon tinue its present program of obtaining cash through sale of accounts receiv able. • Consolidated
Electrodynamics
SEARCHING FOR
NEW INTERMEDIATES?
mmsCéïitmsê^. a-NAPHTH Available in commercial quantities
a—Naphihpropionic Acid
ο—Naphthoic Acid
o—Naphthocetonifrite
a—Naphthacetic Acid
o—Naphthocetamide a—Naphthonitrile
COCKERILLE CHEMICALS, INC., Manufacturer, GREENWOOD, V A .
SOLE SELLING AGENTS
MM tlimastet
ÇhjemicatCof-jporutiofi
2 9 5 M A D I S O N A V E N U E , NEW Y O R K
has
17V N E W YORK
The New Model 70
UTILITY TESTER MEASURES: Φ VOLTAGES — CURRENTS — RESISTANCES — LEAKAGES
• Foote Mineral common stock is being listed on t h e N e w York stock exchange this month. T h e shares previously were traded on t h e over-the-counter market.
• Chemical stocks most widely held b y college a n d university endowment funds are D u Pont a n d Union Carbide, both of which rank a m o n g the 10 most favored college investments, according to a survey b y Boston F u n d . Chris tiana Securities, an investment com pany with large D u Pont holdings, is also a stock among t h e t o p 10 in school endowments.
Available in pilot plant quantities:
ο—Naphthaldehyde
sold 100,000 shares of common stock to a group of institutional investors through Blyth a n d C o . T h e $4.3 mil lion raised from t h e private placement will b e used for additional working capital.
• Hugo Stinnes Corp. stock held b y t h e Government h a s been sold t o t h e Deutsche Bank of Frankfurt, Germany (C&EN, May 2 7 , p a g e 9 1 ) . Attorney General Herbert Brownell accepted t h e bank's bid—the only one submitted—of $19.6 million for t h e Government's 530,712-share ( 5 3 % ) interest in Stinnes. which was seized as a German asset during W o r l d W a r I I .
— aldehyde — oic Acid — acetic Acid — propionic Acid — acetonitrile — acetamide :— onitrile
•
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Incorporates a sensitive direct-reading re sistance range which will accurately measure all resistances commonly used in electrical appliances, motors, etc. This range also w : l | enable continuity checks and tests for shorts and opens. Leakage circuit will indicate all resistances from zero ohms to 5 Megohms (5,000,000 ohms).
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STANDARD SCIENTIFIC SufifiCtt @0Ί&. 80 8 B R O A D W A Y N E W YORK ί , N V Y .
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I957
A ^ • • g»g V | * i Ow •V e ·»«#*.« EACH
LABORATORY APPARATUS REAGENTS AND CHEMICALS
C&EN
77
