CHICAGO, May 13, 2011 /PRNewswire/ -- Today, Zacks Equity Research discusses the Chemical Industry, including The Dow Chemical Company (NYSE: DOW), EI DuPont de Nemours & Co (NYSE: DD), Eastman Chemical Company (NYSE: EMN) and Celanese Corp. (NYSE: CE).

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A synopsis of today's Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/53215/Chemical+Industry+Outlook+%96+May+2011

The recession had hit the chemical industry hard. As a result of lack of demand, chemical companies shelved their growth plans. With plants idled or running at historically low rates, the companies looked for avenues to streamline operations and increase productivity. Accordingly, they resorted to restructurings, plant closures and layoffs. Cost-cutting initiatives at industry majors, like, The Dow Chemical Company (NYSE: DOW) and EI DuPont de Nemours & Co (NYSE: DD) helped them save billions of dollars.

With the economic turnaround, the global chemical industry is recovering from the recession-hit lows. Domestically, chemical production volumes increased across all regions of the country in 2010, reversing the steep declines experienced in 2008 and 2009. The largest gains occurred in the Gulf Coast and Ohio Valley regions, boosted by export demand for basic chemicals and plastics. Output is expected to grow moderately in all regions in 2011 and continue to improve through 2012.

The growth outlook for the U.S. economy remains favorable, despite the anemic pace in the first quarter. Current expectations are for a real GDP growth rate in excess of 3% for 2011.

End-markets for chemical products are showing strong growth. This growth has been reflected in the earnings releases of most chemical companies for first quarter 2011. Eastman Chemical Company (NYSE: EMN), for example, reported a 28% increase in sales revenues, primarily due to improved customer demand in packaging, transportation and other markets and the positive impact of growth initiatives.

Combined with the restructuring and cost saving programs that many chemical companies implemented last year, output growth is driving high earnings across the sector, to the extent that many companies are confident of out-performing full year forecasts.

Based on the strong first quarter results, Eastman Chemical Company expects second quarter 2011 earnings per share to be slightly higher than first quarter 2011 and full year 2011 earnings per share to be slightly higher than $9.

Celanese Corp. (NYSE: CE) revenue also grew 14% year over year to $1.6 billion in first quarter 2011 driven by higher volumes across all business segments. Encouraged by the first quarter strength, the company raised its outlook for full-year 2011.

The company now expects 2011 operating EBITDA to be at least $200 million higher than 2010's $1,122 million and adjusted earnings per share to be at least $0.85 higher than 2010's $3.37, based on a tax rate and diluted share count of 17% and 158.7 million shares, respectively.

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