Chemical firms warn about quarter

A few large chemical companies are coming out with early warnings that the second quarter will be disappointing. The German firm Lanxess says profits for the quarter—and possibly for the rest of the year—will fall below market expectations. It says that it is not yet seeing a recovery in demand in China and other big markets and that it is still being negatively affected by high energy prices in Germany. Like Lanxess, carbon materials specialist Cabot has yet to see an uptick in business in China and warns that earnings could disappoint. Olin expects earnings to be lower than its previous forecast because of longer-than-anticipated repairs at a vinyl chloride plant, as well as deteriorating market conditions. The chlorine chemical maker is also trimming operations; it is ceasing production in Gumi, South Korea, and reducing epoxy capacity in Freeport, Texas.