Analysts Say Chemical Firms Will Have Poor 3rd Quarter

After a three-year surge in profits fueled by a strong economy, the chemical industry is expected to post weaker third-quarter results due to slower demand, inventory slashing and weaker exports.

“Earnings are weakening significantly,” said Oppenheimer & Co. chemicals analyst George Krug. An earnings erosion is anticipated to continue through 1990, he said Monday.

Analysts said makers of basic commodity chemicals, which are used as raw materials for specialty chemicals in manufacturing, are expected to be hit the hardest.

Diversified chemicals makers, such as Monsanto Co. and Du Pont Co., should emerge unscathed, while results should be mixed at specialty chemical companies, analysts said.

They said that while specialty companies enjoyed lower raw material costs due to lower commodity chemicals prices, their export markets were hurt by the stronger dollar.

Major commodity chemicals producers Dow Chemical Co. and Union Carbide Corp. are expected by analysts to post lower earnings.