WSJ reports dismal earnings reports are likely from the U.S. chemical industry this week, with the marketplace braced for significantly worse results than it expected even just a few weeks ago. Investors and analysts will be sifting through fourth-quarter results in search of signs of how much longer the downturn is likely to last. As provider of the basic chemicals and plastics used to make most industrial and consumer goods, the chemical industry has been sliding into a deep trough as the economic slump hampers demand. At the same time, falling prices for the industry's products have contributed to declining sales as customers delay purchases in the hope prices will slip further, analysts say. Figuring out how much each of these two factors is weighing on companies' earnings could help clarify the industry's outlook, analysts say. If a big part of the problem is delayed purchasing, then that could indicate a potential rebound in sales when inventories become thin and clients start to restock.
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