Chemical (basic) industry
Article Abstract:
Commodity selling prices in the chemical industry have been pushed down, due to overcapacity and weakened demand. The rising costs of energy is another negative impact on the industry, but many chemical companies have prepared for another cyclical downturn through improved balance sheets and operating efficiencies. Cheaper raw materials should also help specialty chemical companies. These stocks must be carefully evaluated before commitment.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1997
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Chemical (basic) industry
Article Abstract:
Chemical industry growth is not likely to be supported by the expected slow growth (2.3%-3%) in the economy for 1996. Lack of demand and overcapacity in the industry could lead to lower prices, and chemical companies will have to improve capacity and capital utilization. Return-on-capital should improve over the next three to five years with cost cutting and getting through an expected downturn. Investors must select these stocks carefully.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Chemical (basic) industry
Article Abstract:
The basic chemical industry appears headed for a downturn. The industry is tied to the global economy, a slow rate of growth bodes poorly for the sector. Increased capacity is coming on line with threats of oversupply following. European economies will not lead to increased demand in that region. Careful consideration must be given to individual companies reports as there are wide variations noted.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
User Contributions:
Comment about this article or add new information about this topic: