- Job growth in January shattered expectations, with nonfarm payrolls surging by 304,000, the Labor Department says.
- Economists surveyed by Dow Jones had expected payrolls to rise by 170,000.
- There were revisions. December’s big initially reported gain of 312,000 was knocked all the way down to 222,000, while November’s rose from 176,000 to 196,000.
- The unemployment rate ticked higher to 4 percent, a level where it had last been in June, a likely effect of the shutdown, according to the department.
The Urethane Blog
Everchem Updates
VOLUME XXI
September 14, 2023
Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more
February 1, 2019
Howard Ungerleider
In the Materials Science division, we expect continued strong consumer demand though at a moderately slower pace than in 2018. We expect operating EBITDA to be down low-20% as volume growth, cost synergies and the benefit from the completion of our U.S. Gulf Coast investments will be more than offset by lower chain margins spreads that will continue into the first quarter, due to the averaging effect particularly on our polyethylene and isocyanates chains. The division is acting quickly on a series of actions to offset as much of these headwinds as possible, including cost and productivity actions, capitalizing on new capacity additions, and driving pricing improvements.
Jim Fitterling
Here are some division highlights. We again captured demand growth across the majority of our core businesses. We achieved high-single digit volume growth in Polyurethanes and Industrial Solutions and our Packaging & Specialty Plastics business grew volume 4%.
Industrial Intermediates & Infrastructure operating EBITDA declined by 18%, primarily driven by a contraction in isocyanates that impacted core business results, particularly in Polyurethanes, as well as some softening in appliance and automotive end markets. The contraction in isocyanate spreads, along with a 25% margin compression in MEG also led to year-over-year reduction in equity earnings. These headwinds more than offset demand growth and benefits from cost synergies.
Sales gains in both Polyurethanes and Chlor-Alkali and Vinyl and Industrial Solutions were led by a robust volume growth due to increased supply from Sadara. In the Polyurethanes chain, the moderation in isocyanates prices that we’ve forecasted for some time accelerated in the quarter with MDI prices dropping about 40% year-over-year. In our view, the fly-up margins that we captured over the past year completely unwound over the course of the fourth quarter, notably in Asia Pacific and Europe, where we have the largest merchant isocyanate exposure.
https://seekingalpha.com/article/4237151-dowdupont-inc-dwdp-ceo-edward-breen-q4-2018-results-earnings-call-transcript?part=single
February 1, 2019
Table 4 – I&D Financial Overview
| Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
| December 31, 2018 |
September 30, 2018 |
December 31, 2017 |
December 31, 2018 |
December 31, 2017 |
||||||
| Operating income | $ | 308 | $ | 431 | $ | 334 | $ | 1,716 | $ | 1,202 |
| EBITDA | 379 | 504 | 410 | 2,011 | 1,490 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 – EBITDA decreased $125 million versus the third quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $10 million. Volumes declined primarily due to planned maintenance partially offset by improved margins. Intermediate Chemicals results decreased approximately $65 million. Margins declined for most products, primarily acetyls and styrene. Oxyfuels & Related Products results decreased approximately $40 million. Margin declined primarily due to stronger ethanol pricing relative to crude oil and volume declined due to planned maintenance.
Three months ended December 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased $31 million versus the fourth quarter 2017. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $50 million with volumes declining due to 2018 planned maintenance. Intermediate Chemicals results increased approximately $35 million. Margins improved for most products and volume increased for acetyls and styrene. Oxyfuels & Related Products decreased by approximately $30 million with declines in both margins and volumes.
Full year ended December 31, 2018 versus full year ended December 31, 2017 – EBITDA increased $521 million versus 2017, setting an annual record for 2018. Compared with the prior period, Propylene Oxide & Derivatives results increased approximately $65 million with improved margins due to strong demand, tight market conditions and improved contracting strategies. Intermediate Chemicals results increased approximately $345 million driven by margin improvements in all products and improved contracting strategies. Tight industry conditions drove an increase of over 12% in acetyls prices and a styrene margin increase of 3 cents per pound. Oxyfuels & Related Products increased by approximately $100 million. Margins improved with crude oil pricing outpacing butane and volume increased with no planned maintenance in 2018.
http://lyondellbasell.mediaroom.com/index.php?s=43&item=1263
February 1, 2019
Table 4 – I&D Financial Overview
| Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
| December 31, 2018 |
September 30, 2018 |
December 31, 2017 |
December 31, 2018 |
December 31, 2017 |
||||||
| Operating income | $ | 308 | $ | 431 | $ | 334 | $ | 1,716 | $ | 1,202 |
| EBITDA | 379 | 504 | 410 | 2,011 | 1,490 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 – EBITDA decreased $125 million versus the third quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $10 million. Volumes declined primarily due to planned maintenance partially offset by improved margins. Intermediate Chemicals results decreased approximately $65 million. Margins declined for most products, primarily acetyls and styrene. Oxyfuels & Related Products results decreased approximately $40 million. Margin declined primarily due to stronger ethanol pricing relative to crude oil and volume declined due to planned maintenance.
Three months ended December 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased $31 million versus the fourth quarter 2017. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $50 million with volumes declining due to 2018 planned maintenance. Intermediate Chemicals results increased approximately $35 million. Margins improved for most products and volume increased for acetyls and styrene. Oxyfuels & Related Products decreased by approximately $30 million with declines in both margins and volumes.
Full year ended December 31, 2018 versus full year ended December 31, 2017 – EBITDA increased $521 million versus 2017, setting an annual record for 2018. Compared with the prior period, Propylene Oxide & Derivatives results increased approximately $65 million with improved margins due to strong demand, tight market conditions and improved contracting strategies. Intermediate Chemicals results increased approximately $345 million driven by margin improvements in all products and improved contracting strategies. Tight industry conditions drove an increase of over 12% in acetyls prices and a styrene margin increase of 3 cents per pound. Oxyfuels & Related Products increased by approximately $100 million. Margins improved with crude oil pricing outpacing butane and volume increased with no planned maintenance in 2018.
http://lyondellbasell.mediaroom.com/index.php?s=43&item=1263
February 1, 2019
Payrolls surge by 304,000, smashing estimates despite government shutdown
https://www.cnbc.com/2019/02/01/nonfarm-payrolls-january-2019.html
February 1, 2019
Payrolls surge by 304,000, smashing estimates despite government shutdown
- Job growth in January shattered expectations, with nonfarm payrolls surging by 304,000, the Labor Department says.
- Economists surveyed by Dow Jones had expected payrolls to rise by 170,000.
- There were revisions. December’s big initially reported gain of 312,000 was knocked all the way down to 222,000, while November’s rose from 176,000 to 196,000.
- The unemployment rate ticked higher to 4 percent, a level where it had last been in June, a likely effect of the shutdown, according to the department.
https://www.cnbc.com/2019/02/01/nonfarm-payrolls-january-2019.html
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