Chemical earnings continue strong gains: Profits of 40 largest U.S. chemical firms soared 36% in first quarter as sales jumped 21 %, but question is how long this pace can last

Earnings increases in the U.S. chemical industry continued at breakneck speed in the first quarter of 1979. For the 40 largest U.S. companies with half or more of their sales in chemicals, earnings climbed 36% in the first quarter over the same period in 1978. This is the second quarter in a row that profits at these companies have increased more than 30% year-toyear. In the fourth quarter of 1978, earnings jumped about 33%. At the same time that earnings reached new highs, profitability also rose. Profit margins, or earnings as a percentage of sales, for the 40 largest chemical companies increased to 6.8% in the first quarter from 6.1% in first-quarter 1978. For the most recent quarter, the smaller companies were again the most profitable. Profit margins among the 20 companies at the lower end of C&EN's list ran at an average of 7.7%—well above the 6.7% scored by the 20 largest companies on ...