Copyright: include link to this article on top of reproduction if you use it.
Reports like this are happening all across the country. Spending cuts have the final result of millions of more unemployed. They, in turn, reduce their buying because they are living off of Unemployment Insurance. Because of their lack of spending other companies are hurt and they cut employment.
The chemical industry is rather important for any economy because many sectors such as industries of consumer goods, telecommunications industry require chemicals that may be provided by the chemical industry. The case is no different in the U.S. In fact, growth in the chemical industry of the United States is crucial for the U.S. economy. For this reason, in the United States, many research and development companies in the field of chemistry have made billions of dollars are invested every year in order to invent new chemical processes and increase productivity the American chemical industry.
Be aware that the economy is still tanking. Look at Retail Sales, Durable Good Orders, Industrial Production, Initial Claims for Unemployment, and Mass Layoffs or Furloughs to see what is really happening with the economy.
Dow Chemical revenues slide; company cuts spending
(AP:MIDLAND, Mich.) Dow Chemical said Thursday that revenues slid in the third quarter and the company that makes the basic ingredients for everything from toys to cars is not counting on better conditions this year or next.
The company has sold billions in assets, cut thousands of jobs and slashed costs, and Dow saw a sharp increase in net income over the past three months as raw materials costs fell.
Andrew Liveris, Dow’s chairman and CEO, said the global economy was on a firmer footing, and described the recovery at home as “slow and tenous.”
The recovery right now, however, is being driven by sales in Asia, especially China, Dow said.
Dow Chemical Co., of Midland, Mich., says profit grew to $711 million, or 63 cents per share, compared with $428 million, or 46 cents per share a year ago. Excluding one-time benefits and losses, Dow earned 24 cents per share. Revenue fell 22 percent, to $12 billion from $15.4 billion.
Revenues from the infrastructure and coatings business slumped 22 percent compared with last year, though there are signs that the market is stabilizing. Revenues rose 7 percent over the past three months.
“The global economy is now on firmer footing, and, in our view, the United States economy is beginning a slow and tenuous recovery, with unemployment continuing to be a drag on consumer spending,” said Liveris. “Therefore, our 2009/2010 operating plans do not count on material improvements in market conditions, and we remain tightly focused on those factors we can control.”
Original article found at INO.com
Dow Chemical closes three plants in Louisiana
Dow Chemical Co. said that it will close three Louisiana plants as part of a shift away from basic chemicals toward the lucrative business of specialty chemicals.
The shuttering comes as part of a massive plan to cut costs after Dow bought rival Rohm & Haas in April for more than $16 billion, a deal that added massive amounts of debt to its balance sheet.
Dow expects to take a $700 million second-quarter charge as part of Wednesday’s announcement, but expects to cut costs by about $100 million a year.
The approximately 100 people who work at the plants will be offered jobs elsewhere, Dow said.
The plants make ethylene, a building block for basic chemicals like plastic and packaging. The basic chemicals market is heavily affected by price fluctuations in crude, and products are usually made and sold in large batches and at razor-thin profits.
Sourceed from Layoff Tracker
- Dow Drops Over 200 PointsBy: Cindy Perman Writer Stocks tumbled Thursday after a disappointing ISM report on manufacturing piled on to worries about the economic recovery. The Dow Jones Industrial Average lost 203 points, or...
- Consumer spending is not indicative of recovering economy“While the sources for the supposed increases in U.S. consumer spending are murky at best, the amount of consumer spending in and of itself is not a determinant of whether...
- Sex industry indicator of worldwide depressionThe United States Its a country known throughout the globe, in one sense, for its championing of family-values and conservative sensibilities. But the irony with the United States is its...
- U.S. Retail Industry Numbers: 1,131 Store Closings, 9 Chapter 11 Risks, 37 Simultaneous Openings and 284 Expansions in 2010By Barbara Farfan, About.com Guide to Retail Industry The sum total of the numbers found in the U.S. retail industry store closings, store openings, job cuts, and Chapter 11 assessments...
- Chinese ban on Canadian canola shocks industry“China has blackleg within their own country,” Weber added. “So it’s a red herring.” It is quite obvious now that the world’s major trading powers, China and the USA, are...
- US military base closures, cuts hit cities“Even if we were to return to the funding levels we’ve had in recent years, we cannot continue to sustain viable operations in all 56 armories across the state,” Bunting...
This entry was posted on Thursday, October 22nd, 2009 at 2:33 pm and is filed under North America. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.