Market Data

As financial results are posted for the first half of 2010, it becomes quickly clear that many plastics suppliers have benefitted greatly from an improving market.

At BASF, sales in its plastics business were up 48% in the second quarter compared with the weak level of the previous year. Earnings rose even more, by 153% compared to the same quarter in 2009 and also up over the first quarter of this year.

ExxonMobil's second -quarter earnings, excluding special items, were up 85% from the year prior, fueled by improved downstream margins and strong chemical results. First-half earnings of $13.9 billion were 60% above the first half of 2009. The chemical segment, which includes the company's plastics businesses, posted earnings of $1.368 billion-$1.001 billion higher than the second quarter of 2009. Stronger margins improved earnings by $840 million and higher sales volumes further increased earnings by $120 million.

The Malaysian Plastics Manufacturers Association (MPMA) has developed a Roadmap based on inputs provided by plastics industry participants that will act as a guide for plastic processors to meet the aspirations of the government's New Economic Model (NEM).

Tech Mold Inc., a leading mold manufacturer of high-volume production molds for the medical, pharmaceutical, packaging, and consumer industries, just opened a white room molding environment at its Gilbert, AZ, testing facility—Tech Mold East—to better facilitate the testing and qualification requirements for the many molds the company builds.
 

ERP software provider IQMS (Paso Robles, CA) improved profitability by 50% in the first half of 2010, while also increasing headcount, accelerating software development, and growing its number of new client companies. Randy Flamm, president and founder of IQMS, said his company is seeing strong gains year-to-date over last year. In spite of the industry-wide downturn in 2008 and 2009, Flamm said not only has IQMS not experienced lay-offs, but it has grown almost every department in the company by double digits.
 

Following a week of negative reports, the American Chemistry Council's (ACC; Washington, DC) economics and statistics department changed its banner from green to yellow when its running tab of positive indicators slipped to 11 out of 20. While news that initial claims for unemployment insurance fell to a two-year low was positive, disappointing reports on retail sales, industrial production, trade, and the regional business surveys outweighed any optimism to be gleaned from that bright spot.

New capacity, revived demand, and the ability to benchmark against the historically terrible first six months of 2009, lifted Sabic Basic Industries (Riyadh, Saudi Arabia) to net income in the first half of 2010 of SR10.45 billion ($2.786 billion), up 1159% compared to net income of SR0.83 billion ($22.1 million) for the same period in 2009. Net income for the quarter ended June 30, was SR5.02 billion ($1.338 billion) up 177% compared to net income of SR1.81 billion ($314.8 million) for the same quarter in 2009.

The global demand center for all types of resin has indeed shifted to Asia. Meanwhile, energy efficiency, low carbon footprint, and the need for expanded performance envelopes are driving developments in resin technology.

The Institute for Supply Management (ISM) released its Manufacturing ISM Report on Business for June, and it showed a continued expansion for the 11th consecutive month. However, things appear to be slowing somewhat. Comments from the ISM's Manufacturing Business Survey Committee chair Norbert Ore appeared to brighten the picture.