John M. Weiss

Chemical Industry Growth: A look at future possibilities shows a potential doubling of the chemical industry in next 10 years from plastics and Fibers alone

CHEMICAL STOCKS are generally regarded as growth stocks and up to the present have lived up to that promise. In illustration we may compare the results of 1949 and 1954 for 12 of the larger chemical companies. Operating profits before federal income taxes have increased in the same general way as gross sales but with some differences related to the basic activities of the individual company and the type of products produced. Over the span of the six years shown, admittedly using poor years for industry generally, sales have increased about 90% and profits from operations before taxes have almost doubled. This is an extremely rapid rate of growth and we may well speculate as to the principal causes of this growth and as to whether the growth is likely to continue. Chemical industry has increased largely beyond the secular trend by developing new products and new uses for old products, thereby opening ...