Chemical Earnings Average Down Yet Again in Second Quarter

It's getting to be an old story. For the eighth straight quarter, chemical companies' earnings have declined from the previous year's comparable quarter. And although this year's first-quarter drop showed some moderation of that continuing decline, the second quarter worsened with an 18% decrease from the same period in 1990. Earnings for oil companies and diversified manufacturers that have chemical operations also declined substantially in the second quarter, Only pharmaceutical companies continued to show an increase, but it seems that they are impervious to the whims of the economy—as long as people get sick and researchers come up with improved and high-value-added products. For chemical operations, other than pharmaceuticals, the economy continued to take its toll. Poor pricing, higher feedstock costs, lower demand, and a host of other bleak economic factors all played their part. End-use markets continued weak in the second quarter. The automotive market, a huge outlet for plastics, fibers, and oth...