Canadian chemical recovery continues

Abstract

The earnings recovery that began about a year ago for the Canadian chemical industry continues apace. All of Canada's four largest publicly reporting chemical companies— Canadian Industries Ltd., Celanese Canada, Du Pont Canada, and Union Carbide Canada—could boast of substantially improved sales and greatly improved earnings in both the third quarter and the first nine months of 1979. A year ago, the four companies, even though they were significantly better off than in 1977, still weren't making much money. Profit margins for the third quarter of 1978 averaged a paltry 2.2%. In contrast, the average return on sales in this year's third quarter was 7.5%. Celanese and Du Pont, both big in fibers, are now turning profits on those items as well as on chemicals. Carbide, traditionally the most profitable of the four, was in the doldrums last year. But in the third quarter its earnings more than quintupled (compared to last year's period) and ...