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Diversified chemical industry stocks, despite gains in European companies, should be purchased carefully. The diversified chemicals industry tends to trail economic cycles, slowing down well into recessions and picking up well after recoveries. It can expect continually lagging profits, as the European economies continue to struggle and the US economy just begins to recover. European chemicals issues recently jumped in price, as speculators anticipated a dramatic 1994 European recovery, but there is some question as to how accurately this buying anticipates economic trends.

MONTEDISON has agreed to hold a shareholders meeting next month as requested by Italenergia, the Fiat-led consortium trying to take over the company. But the Italian parliament last week put [...]

Edison, a subsidiary of Ferruzzi-Montedison Group, saw hydro output increased by 13% in the first quarter of 1994, with thermal production up by 81%. Its electricity sales increased to 650.0 billion Lira with the price per unit also up. Gross operating profit from electricity was 376.1 billion Lira in 1993. It increased its financial debts by 106.3 billion in 1993 and financial charges increased to 82.3 billion Lira.

Montedison has presented the Italian government with detailed proposals for reducing phosphate waste dumping from its Porto Marghera complex into the northern Adriatic. According to Nicola Sanese, vice-secretary for industry, [...]

Montedison S.p.A.has declared substantial increases in operating income and revenues for the first half of 1993, though not enough to offset the group's heavy financial charges due to its Lira 11.5 trillion debt. The restructuring plan being drawn up by the banks is deemed to affect the first-half results. Improvements in the chemical, energy and engineering sectors contributed to the overall increase in revenues.

MILAN -- The share price of Ferruzzi Finanziaria. the publicly quoted holding company of the Ferruzzi family. dropped to a new low ofL366 in the past week. which was only [...]

Montedison SpA suffered a loss of 88 billion Lira ($142 million) in the 1st half of 1992 after a net profit of 108 billion Lira for the same period in the previous year. The losses of the chemical, energy and agroindustrial concern controlled by Italy's Ferruzzi group has been attributed to an increase in its finance charge brought about by its huge debt and to a decline in the operating profits of its chemicals division. The company is looking to rationalize its operations to help reduce its 8,092 billion Lira debt.

The chemicals division of holding company Montedison SpA experienced a 25% decrease in operating profits as a result of lower prices and higher raw material costs of polypropylene (PP) resins. The chemicals segment, composed of Himont SpA, Moplefan SpA, Sistema Tencara SpA and Ausimont SpA, contributed 20.6% of sales for the subsidiary Montecatini SpAand 47% of gross operating profit. Profits from sales of polymeric materials, including PP, decreased by 36% while profits from downstream and processed products increased by 70%. Profits from advanced materials and speciality chemicals rose by 9.4% despite a drop in sales.