Demand for chemicals falls flat

Abstract

For the chemical industry, 2018 was the kind of year that inspires confidence in executives and shareholders. But early fourth-quarter results from a handful of companies landed with the sound of a sad trombone. Air Products and Chemicals, DowDuPont, and Sabic reported zero sales growth from the year-ago quarter. The fourth quarter is typically the slowest time of the year for the industry. But it is likely that the period’s lack of verve is a harbinger of the slow economic growth anticipated for 2019 rather than merely a typical operations slowdown. Stock analysts have had their antennae raised for word that firms are lowering their earnings outlooks for this year. For the most part, executives are standing pat. At Air Products, CEO Seifi Ghasemi refused to change his expectation of 10% year-over-year earnings growth. “We do not control events that impact economies around the world, but we do control the