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The article discusses the profits posted by chemical companies that appear to be growing amid an otherwise stretched U.S. economy.

Sales and earning for U.S. chemical industry increased in second-quarter 2007 compared to the first quarter.

A survey of 24 major chemical companies show that earnings from continuing operations increased an aggregate 23% compared with that of the third quarter of 2005 with overall profit margin for the group at 6.8% compared with 6.1% a year ago. This improvement in the result of the third quarter raises hope for a good full year along with price and cost improvement programs.

A 2006 survey of 24 major US chemical firms showed earnings rising a marginal 0.4% when compared with the same period in 2005, to US$3.94 billion, on a sales improvement of 6.7% to 48.4 billion. Data from the Federal Reserve Board revealed that second-quarter output of all chemicals rose just 0.4% from the same period in 2005, but the production index for the important, but highly cyclical, basic chemicals sector declined 0.9%.

The US chemical industry has reported that the results of the fourth-quarter of 2005 were badly affected due to the hurricanes that hit the Gulf Coast in late August and in September 2005, causing plant closures, disrupting the transportation system, and reducing the demand for basic organic chemicals. The chemical industry is optimistic about 2006 despite the uncertainty and volatility of feedstock and energy costs and they are expecting the worldwide demand for chemical and plastic containers to grow.

Prices of chemical products during 2005 increased due to the increase in the cost of oil, natural gas, and electricity used as fuel and feedstock, therefore demand for chemicals in the first 10 months of the year increased upto $457.3 billion. The problem is that the US chemical industry has entered 2006 with many of the same concerns as it had at the beginning of 2005.

Hurricanes Katrina and Rita and high costs are dampening the results for most of the US chemical firms in the third quarter of 2005. The earnings, sales, profits and losses of some of the important chemical industries in the US are presented.

Prices for chemical products continued to climb in the second quarter of 2005 while production was up from year-earlier levels and demand for products rose. This resulted in increase in earnings by 45.7 percent over second-quarter 2004 to $3.71 billion as sales rose 12.7 percent to $42.5 billion.

The total earnings at 24 chemical companies increased 45.2% from the same quarter of 2003 to $2.76 billion in 2004 as sales rose 16.4% to 35.3 billion. Improved pricing, demand, and output contributed to these quarterly and annual increases. The details of 2004 Fourth-quarter results for chemical industry, which includes sales, earnings, profitability and production details are briefly discussed.

Twenty six chemical companies has reported an earnings of $1.98 billion, a 63.6% increase over the same quarter in 2003 as sales rose from $15.0% to $36.1 billion. Due to high earnings the companies are able to increase their own prices at a greater pace than the rate of cost increases.

C&EN's quarterly surveys of US chemical companies reveals that 23 firms earned a total of $1.56 billion from continuing operations, a 95.9% increase over the year 2003's fourth quarter. It was observed that Dow Chemical's $647 million growth earnings made up 84.5% of the total earnings growth of the 23 companies.

Of the top ranked companies for the first half of 2003, Dow Chemical, Dupont, and PPG Industries are the top three in that order. The industry as a whole, however, is not doing as well. The top 8 companies had earnings above $1 billion. All remaining companies on the list earnings less than half that amount.

Globally, chemical companies have reported sales gains in the fourth quarter of 2002. Though the gains were not reported by all the major companies, most did show modest earnings. Charts, and sidebars detail top 10 companies, increased earnings, etc.

For the top 25 United States chemical companies, earnings significantly increased above that of the same time last year.

Fourth-quarter earnings for the top ten U.S. chemical companies are provided in a tabular form to show earnings, profit margins, production, prices, etc.

The U.S. Chemical industry suffered during the 3rd quarter of 2001: 25 major chemical companies experienced a 9% decline in sales and an aggregate earnings drop of 53%.

Earnings of 25 US chemical companies fell 22% in 4th-qtr 2000, but annual figures managed to show an increase of 2%. High prices are blamed, and further difficulties are predicted for the first half of 2001. Some petroleum company earnings soared during the period.

The U.S. chemical industry experienced three quarters of continued earning growth followed by a decline, partly as a result of increased oil prices.

Leading chemical companies report 14% growth in earnings for the second quarter. Diversified oil and gas companies also report increase in earnings.

Leading chemical companies in the United States have reported 14% increase in earnings for the second quarter 2000. This report showed that most segments of the chemical industry also report growth and includes earnings at diversified chemical producers, oil and gas producers and related statitistical data.

Chemical industry had earnings increase by 17% for 1st qtr 2000 when compared with earnings for 1st qtr 1999. Sales increased by 14%, profits increased by 8.5%, prices increased by 4.9% and production increased by 5.7%.

Acquisition, mergers, and increased revenues in the chemical industry have an effect on the ranking of the top 75 producers.

The chemical industry reported increased earnings in the fourth quarter of 1999 after six straight quarters of loss.

US chemical companies had earnings increases during 3rd qtr 1999 but they were still lower than 3d qtr 1998. While demand for products is increasing, exports are unchanged and feedstock costs are higher.

The year's second quarter heralded the continuing decline of chemical company earnings. There is, however, some hope as this quarter compares favorably with quarters during 1998. A recent spate of price increases for products such as petrochemicals and sulphuric acid shows a sign of industry improvement. Charts and graphs are provided.

Prospects for the US chemical industry continue to be promising despite a 4% decline in earnings for the second quarter of 1998. According to experts, the rate of decline is relatively small compared to the expected drop of 10% to 15%. The profitability of chemical firms was also hardly altered, with a minimal drop from 8.7% to 8.6% during the period mentioned. Although 20 firms recorded slight decline in earnings due to economic difficulties and limited growth, only 12 companies posted lower revenues for the quarter compared to the previous year.

The chemical industry posted earnings for the first quarter of 1997 despite several economic factors affecting the industry, such as the Asian financial crisis and increased foreign competition. Thirty chemical companies reported a 3% increase in overall earnings for the same quarter despite a 1% decrease in sales. Those firms also reported an increase of 8.2% in terms of overall profit margin for the first quarter of 1997, despite the decline of the demand for chemicals.

The rankings of the top 100 chemical companies remained very much the same in 1997 with more than half of the companies remaining within two places of their previous rankings. At the top is still DuPont with chemical sales of $21.3 bil in 1997 followed by Dow Chemical with $19.06 bil and Exxon with $12. 19 mil. The top 50 companies had a combined share of 84% with overall sales growth registering only a 1.9% increase from the 1996 figures.

The trend in chemical industry that began in the mid-1980 is likely to be extended in the next 25 years where commodity chemicals and value-added chemicals will remain to be the industry division. Michael Fitzpatrick believes that the financial market will be the driving force of this strategy. Earnest Deavenport, however, sees the advent of Asian investors and the privatization of firms to break the continuation of the industry division.

The global chemical market grew in 1995, leading many chemical executives to anticipate stronger growth for the second half of 1996. Although the industry suffered a soft landing during the latter half of 1995, most producers enjoyed an increase in production, exports, sales, prices and profits. Employment, however, persisted on a downward trend as companies continued to implement measures to reduce operating costs and enhance productivity.

The combined earnings of 30 top chemical companies increased by only 2% in the 4th qtr. 1995, reaching a total of $21.7 billion. Although impressive, the figure pales in comparison the first three quarters which saw combined earnings increase by 54% totalling $91.0 billion. The slight decline in combined earnings during the 4th qtr. of 1995 was attributed to decreased demand, softer prices and higher prices for feedstocks.

The chemical industry posted an 89% increase in after-tax earnings for the 1st qtr. of 1995. This is attributed by industry analysts to the cost-cutting measures implemented by chemical producers which led to higher plant efficiencies and increased capacity utilization rates. Ten pharmaceutical companies also reported combined earnings of $3.84 billion on a sales total of $23.2 billion.

The US chemical industry reported rapid growth in 1994. Industry members confirmed that the demand for chemicals is constantly increasing. They also point out the high rates of basic chemicals production. They likewise are pleased with improving chemical prices and are reaping the economic rewards of industry-wide downsizing since 1990. Industry members are optimistic that the trend will continue in 1995.

Figures for 3rd qtr. 1994 show that the chemical industry is continuing the healthy growth that began in 1st qtr 1994. Combined sales of 29 out of 30 major chemical companies rose 12% from the previous quarter and 60% from 3rd qtr. 1993. Analysts are confident that 1994 will be the first full year of solid profits since 1988. The healthy industry growth is attributed to increasing demand and rising prices.

Chemical firms recorded further increases in gains in the 2nd qtr. 1994, with their earnings rising for the fifth consecutive three-month period. They also registered double-digit rates in earnings for the third straight quarter. Gains were also noted during the period for pharmaceutical companies and diversified firms that produce substantial amounts of chemical products. Only chemical-producing oil companies posted lower earnings during the period, though the decrease was in their oil operations and not in chemicals.

US chemical companies are securing more investments and ventures with Pacific Rim countries. The region is experiencing economic growth in the 7-14% range, a figure which could lead to high profits for lucky foreign companies. However, US companies are prudent when predicting their future in the Far East. Many countries in the region are still experiencing several political and economic difficulties, and some also lack the infrastructure necessary to establish a strong base for the chemical industry.

The US chemical industry experienced economic growth in 1st qtr. 1994 and seems to be moving out of the recession phase. Statistics show a 5% average increase in sales as a result of improved business conditions and cost-cutting measures. The US Commerce Dept. reports that values for shipments of chemicals for 1st qtr. 1994 increased by 3.6% over 1993 values for the same period. Inventories of chemicals and allied products decreased 2.5% while those for industrial chemicals decreased 5.6%.

The top US chemical companies posted a negligible growth in 1993 because of weak demand and soft prices of chemical products. The companies registered combined sales of $183.4 billion, barely surpassing the $183 billion reached in 1992. The slight improvement in earnings was not derived from increased business but from improved operations and cost-cutting measures. The financial profiles of the top 100 chemical companies are presented.

The chemical industry showed signs of recovery in 1993 after four years of continuous decline. Industry earnings fell by 38% from the end of 1988 to 4th qtr 1992. In 1993, earnings were up by 8%, buoyed by the 36% increase in earnings during the fourth quarter to $937 million. Average sales rose only 2% to $19.5 billion. Aggregate profits earnings for 4th qtr 1993 was up by 4.8% compared to 3.6% in 1992. The boost in earning during the fourth quarter was attributed to cost-cutting measures implemented by the chemical industry.