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Stocks in the diversified chemical industry are untimely in early 1999 even though there has been some upward movement in stock prices since Nov 1998. Markets for chemical products remain weak in Eastern Europe, Latin America, Japan and the rest of Asia remain weak, although they remain strong in the US, but the responses of various companies within the industry, such as acquisitions and restructuring, will have costs, as well. Most of these stocks are expected to underperform the market in 1999, but several have above-average potential over the next three to five years.

The demand for construction-related and manufacturing chemicals is expected to lessen in 1999 along with the slower growth in US economic activity, and international demand and currecny questions are concerns, as well. Mergers, acquisitions, and divestitures, along with stock buybacks, have become popular methods to boost share net in the face of slower earnings momentum. These stocks are not timely in late 1998 and are not expected to perform with the market in 1999.

The chemical/diversified industry is recuperating nicely as the general economy improves. The demand for products is strong, but prices are holding their own, due to the nature of contract business. Although the Federal government has raised interest rates again in Nov 1994, the economy, along with foreign economies should continue to improve. Star chemicals include polyethylene terephthalate, which increased in demand by 20% during 1994, compared to 1993 figures.

Potential investors in the diversified chemical industry will find several attractive companies, but the industry as a whole is still emerging from the US recession. The timely stocks may not have much long-term appreciation potential. Fertilizer companies such as Terra Industries and IMC Fertilizer are well-positioned to take advantage of a regulatory climate that favors ethanol as a fuel, though ethanol's future is uncertain because it is still not economically viable.

The diversified chemical industry's prospects during the 1997 to 1999 period will probably not be spectacular, although some businesses may experience strong growth. Investments in these companies over the short and long terms is not likely to prove profitable, although the world's economy is expected to improve through the end of 1994. Companies that recommit to their core holdings will likely show the most promise. Some companies may experience legal problems that will influence their bottom lines.

The chemical/diversified industry has gone through rough economic times during the 1990s recession. Firms have streamlined their operations to survive, selling off non-core divisions to boost revenues. Layoffs were common in 1993. Modest gains are expected during 1994, although the 3-year to 5-year return potential remains dim. Only a few securities are considered timely buys during 1994, including Terra Industries, First Mississippi and Millipore.

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.

W.R. Grace, which had filed for bankruptcy in 2001, has revived despite of the legislation it faced due to the Fairness in Asbestos Injury Resolution Act where $140 billion fund was to be financed by a huge number of firms, including Grace, that once manufactured asbestos, containing products. The reorganization plan, filed in 2004 and amended in 2005, has helped Grace to put its asbestos liabilities at $1.7 billion and pay off unsecured creditors in full and give it shareholders 50% ownership in the post-bankruptcy firm.

Byline: AARON ELSTEIN Chemicals conglomerate W.R. Grace & Co. is best known locally for its distinctive 42nd Street building with the curved faade overlooking Bryant Park. But Grace has just [...]

Laden with $4.8 million in reorganization expenses, W.R. Grace & Co.'s earnings sank 41 percent. The company, which manufactures specialty chemicals and materials, filed for Chapter 11 bankruptcy protection in [...]

W.R. GRACE SAYS IT HAS RECEIVED approval from the U.S. Bankruptcy Court in Wilmington, DE to use $250 million of debtor-in-possession funds issued by Bank of America to continue its [...]

FIRST-QUARTER EARNINGS AT MANY specialty chemical firms fell compared to the same period last year, due to high raw material and energy costs as well as unfavorable currency exchange rates. [...]

COLUMBIA, Md. -- W.R. Grace & Co. has announced a voluntary Chapter 11 bankruptcy filing in response to a sharply rising number of asbestos claims. The company, a diversified manufacturer [...]

Several months ago, in response to a particularly strong editorial attack on trial lawyers and the civil justice system, I suggested that the Dallas Business Journal should tone down its [...]

UNABLE TO STEM the tide of a nonstop wave of new asbestos claims, W.R. Grace & Co. has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code. The [...]

The costs of defending itself against asbestos-related litigation and bodily injury claims forced chemical giant W.R. Grace & Co. to file for Chapter 11 bankruptcy protection April 2 in a [...]

W.R. Grace & Co. sought Chapter 11 bankruptcy protection for its U.S. subsidiaries on Monday, saying it needs time to respond to a sharply rising number of asbestos-related lawsuits. In [...]

W.R. Grace says it will take a $75-million charge against its 2000 earnings to account for potential additional taxes and interest related to loans secured by the cash value of [...]

W R. Grace says it expects full-year earnings will be 3%-5% lower than consensus estimates of $1.84/share. The company earned $1.76/share in 1999. Grace blames the shortfall on 'unanticipated revenue [...]

MOST SPECIALTY chemical companies had solid results in the first quarter as strong volume gains more than offset higher raw material costs. CK Witco, Ferro and W.R. Grace exceeded Wall [...]

CK Witco plans to divest $400 million in non-core businesses. CK WITCO'S earnings fell as expected in the fourth quarter, but W.R. Grace and Engelhard posted strong earnings gains. CK [...]

W.R. Grace is at the tail end of a transition that has transformed it from a $5.7-billion conglomerate spanning flexible packaging and cocoa to a $1.5-billion specialty chemical maker. The [...]

SPECIALTY CHEMICAL companies are posting solid earnings gains in the third quarter and meeting or slightly exceeding Wall Street expectations. W.R. Grace turned in a 30 percent gain in earnings, [...]

Recently reporting specialty chemicals firms including W.R. Grace, International Specialty Products (ISP), and Bush Boake Allen (BBA) exceeded analysts' second-quarter earnings estimates. However, many reported lower sales and earnings, including [...]

Earnings rise for most companies, but sales are generally weak despite Asia's recovery. THE SECOND BATCH of specialty chemical earnings arc coming in mixed. Companies benefited from cost saving initiatives, [...]

W.R. Grace has combined its construction products and Darex container products units to create a performance chemicals unit with combined 1998 sales of approximately $750 million. Robert J. Bettacchi, president/construction [...]

W.R. Grace & Co. is struggling to find $1.5 billion to finance its bankruptcy reorganization plan from a shaky loans market rocked by the credit crunch. The company insists that its reorganization plan is on track and that its financial health should help it acquire the necessary funds.

COMPLEX AND arduous, the corporate bankruptcy process is often misunderstood. While the majority of corporate bankruptcies result in stockholders getting the big zero, in certain cases equity value can be [...]

Grace posts large gains W.R. Grace, the New York-based chemical giant whose holding include a number of quickly expanding restaurant chains, has announced a significant increase in second quarter net [...]