bevor die Michels nachlaufen ;-)
Chemical firms seen reporting strong earnings 20.01.2005 22:44 Zurück Headlines
NEW YORK (AFX) -- U.S. chemical companies are likely to report healthy
quarterly earnings next week, propelled by strong prices stemming from the
global economic recovery and China's construction boom, analysts say.
In a new report, Merrill Lynch said the just-ended fourth quarter came to an
"Ethylene and polyethylene margins surged in November and December as tightening
supply and demand balances allowed producers to increase prices even while
feedstock costs were declining from elevated October levels," the firm said in
However, Merrill warned that higher volumes and margins in the industry raised
earnings expectations for commodity chemical producers. Investors may be
disappointed, Merrill said, if fourth-quarter results don't come in well above
DuPont is scheduled to release its report on Tuesday. The chemicals giant
probably earned 33 cents a share on revenue of $5.76 billion, according to
analysts surveyed by Thomson First Call.
During the year-ago quarter, DuPont made 29 cents a share, not counting one-time
gains, on sales of $6.5 billion. That included results from its Invista textile
unit, which later was sold.
On Thursday DuPont said it would take a special charge against fourth-quarter
earnings of $100 million, or about 9 cents a share, to build up its litigation
reserves after paying an $84 million fine for synthetic rubber price fixing.
DuPont's legal fund also was diminished by a recent agreement to pay $25 million
to settle an unrelated class action suit over synthetic rubber price fixing.
On Thursday Dow Chemical should post fourth-quarter earnings of 71 cents per
share on sales of about $10.4 billion, according to First Call.
During the 2003 comparable period, Midland, Mich.-based Dow Chemical earned 50
cents a share, excluding tax benefits, on sales of $8.3 billion.
Kingsport, Tenn.-based Eastman Chemical also is scheduled to report on
Thursday. First Call projects earnings of 39 cents a share on revenue of $1.47
For the fourth quarter of 2003 Eastern Chemical reported earnings of 13 cents a
share on revenue of $1.43 billion.
This story was supplied by CBSMarketWatch. For further information seewww.cbsmarketwatch.com.