Chemical Earnings Almost Doubled in Fourth Quarter

Abstract

The fourth quarter was one of surprises for many chemical industry observers. They expected earnings to show a healthy rise over the same period the year before, but what they got exceeded even their wildest expectations. Earnings for basic chemical companies, instead of rising the 50% or so expected, actually rose 95% over fourth-quarter 1982, according to C&EN's latest survey of major companies. Diversified companies and oil firms that manufacture chemicals also showed earnings rises, but companies whose main business is chemicals were the stellar performers. In fact, the fourth quarter saved the year for chemical companies, enabling them to show a full-year increase. Earnings had to rise more than 50% in the fourth quarter for the industry to break even for the year. The actual 95% increase pushed up full-year earnings 6% over 1982. Because of the momentum gained in the fourth quarter by chemical companies, good earnings growth will be a certainty in ...