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