CHEMICAL COMPANY EARNINGS surged in the first quarter as production and prices increased, demand for U.S. chemical products rose over the same period in 2003, and firms continued to cut Combined, these three factors generally offset increased raw material and energy Total earnings from continuing operations, excluding unusual items, at 24 of chemical producers, whose combined earnings rose 47.0% to $1.29 billion on a sales increase of 13.1% to $17.8 billion. Industry fundamentals were good in the first quarter. Total U.S. chemical production rose 3.8%, according to Federal Reserve Board data, and the Labor Department reports a 3.6% increase in prices for all chemicals. Demand was good, with Commerce Department data showing total chemical shipments rising 7.1%. Dow's first quarter can be characterized by the following major drivers: strong volume, favorable price momentum, and good control on expenses, offsetting historically high feedstock and energy costs. Looking at the ...