FINANCES

U.S. SHIPMENTS
Demand growth rose moderately for most chemicals

CANADA SHIPMENTS
Nearly every category saw a healthy increase in 2005

EUROPE SHIPMENTS
Growth rebounded strongly in Italy, the Netherlands, and Germany

U.S. PRICE INDEX
Industrial chemicals and plastics saw the largest price gains

CANADA PRICE INDEX
The chemical sector showed a strong rise in 2005

EUROPE PRICE INDEX
Producer price increases reflected impact of higher raw material prices

TOP 50 U.S. CHEMICAL COMPANIES
Sales and operating profits continued to grow at top U.S. chemical producers

U.S. FINANCIAL ANALYSIS
High costs and harsh weather contributed to uneven results for chemical companies

U.S. COMPANY RESULTS
Financial measures improved at most major chemical, pharmaceutical, and biotech firms

CANADA COMPANY RESULTS
Results were mixed for Canadian companies in 2005

EUROPE COMPANY RESULTS
Most companies saw continued sales and earnings growth

JAPAN COMPANY RESULTS
Earnings rose and returns on equity improved

U.S. CAPITAL SPENDING
Spending on plant and equipment jumped 17% as economy picked up

CANADA CAPITAL SPENDING
Investments surged in 2005 to some of their highest levels in a decade

EUROPE CAPITAL SPENDING
Total spending perked up after four years of declines

JAPAN CAPITAL SPENDING
Sumitomo and Shin-Etsu both spent more than $1 billion, and Toray was not far behind

U.S. R&D SPENDING
Chemical company spending rose for third straight year, while pharmaceutical growth continued unabated

EUROPE R&D SPENDING
R&D spending picked up after dip but remained below earlier highs

JAPAN R&D SPENDING
Companies spent more overall, with Sumitomo Chemical as the top spender

EMPLOYMENT

OVERALL U.S. EMPLOYMENT
Chemical employment in the U.S. continued to decrease

U.S. COMPANY EMPLOYMENT
Number of employees worldwide began to climb

CANADA EMPLOYMENT
Employment dropped in 2005

EUROPE EMPLOYMENT
Total employment continued to fall at major European chemical firms

JAPAN EMPLOYMENT
Sumitomo accounted for most of the rise in headcount in Japan

U.S. PRODUCTION WORKERS
Decline was largest by far in basic chemicals sector

U.S. PAY
Wages increased for all sectors except 'other chemicals'

U.S. PRODUCTIVITY
Output per workhour was mixed for chemical industry sectors ...
... but labor costs per unit of production increased for all but paints and coatings

PRODUCTION

U.S. PRODUCTION INDEX
Only two major chemical categories saw production increases last year

ASIA PRODUCTION INDEX
Chemical industry output mostly grew, but man-made fibers shrank in Taiwan

EUROPE PRODUCTION INDEX
Production growth perked up in major European countries

CANADA PRODUCTION INDEX
Chemicals lagged behind other manufacturing in 2005

U.S. ORGANICS
Only urea eked out an increase as all others declined

CANADA ORGANICS
Several products posted declines in 2005

EUROPE ORGANICS
Production showed mixed picture in 2005

CHINA ORGANICS
Ethylene output exceeded 7 million metric tons, a record

ASIA ORGANICS
Production increased for most chemicals, particularly benzene

U.S. INORGANICS
Phosphoric acid increased marginally, but others were flat or took a dive

CANADA INORGANICS
Most key products saw decreased production in 2005

EUROPE INORGANICS
Hydrochloric acid posted the highest growth

JAPAN INORGANICS
Production of hydrogen and oxygen rose to record levels

CHINA INORGANICS
Growth shows no sign of slowing down

U.S. PLASTICS
Phenolics and urea and melamine grew just a tad over 1%, while all others slipped

CANADA PLASTICS
Volumes dropped in 2005, bucking long-term trend

EUROPE PLASTICS
Output of most large-volume plastics declined or grew only slightly

ASIA PLASTICS
Production of most plastics leveled off or fell

U.S. PAINTS & COATINGS
Shipments of architectural and special-purpose coatings expanded last year

U.S. SYNTHETIC FIBERS
Olefin growth continued, but all other categories declined

EUROPE SYNTHETIC FIBERS
Only cellulosics showed growth, and that was slight

JAPAN SYNTHETIC FIBERS
Polypropylene fiber continued to buck the downward trend

U.S. FERTILIZERS
Ammonium nitrate grew strongly, followed by potassium chloride and nitrogen solutions

EUROPE FERTILIZERS
Urea output plunged in 2005

TRADE

U.S. TOTAL TRADE
Chemical industry was again number two among exporting sectors

U.S. CHEMICAL TRADE, BY REGION
Both imports from and exports to China and Latin America rose sharply

EUROPE CHEMICAL TRADE
Belgium, Italy, and Spain had double-digit export growth

U.S. CHEMICAL TRADE, BY PRODUCT
Led by fertilizers and plastics, chemical imports rose more than exports did in 2005

CANADA CHEMICAL TRADE, BY PRODUCT
Exports boomed and imports climbed in 2005

ASIA CHEMICAL TRADE, BY PRODUCT
Chemical trade surpluses grew in both Japan and South Korea

CHINA CHEMICAL TRADE, BY PRODUCT
Deficit grew only slightly as exports rose faster than imports

U.S. CHEMICAL TRADE BALANCE, BY PRODUCT
Large deficits in trade of organic chemicals and pharmaceuticals pushed total trade balance deep into the red

CANADA CHEMICAL TRADE BALANCE, BY PRODUCT
Chemical trade deficit decreased for the second consecutive year

EUROPE CHEMICAL TRADE BALANCE
Italy and Spain remained stuck in trade deficits