C&EN: COVERSTORY - COUNTING PENNIES - TABLE 1

February 3, 2003
Volume 81, Number 5
CENEAR 81 5 pp. 17-21
ISSN 0009-2347

RESEARCH SPENDING
Overall spending by major chemical companies is forecast to slip again in 2003

PLANNED ACTUAL PLANNED CHANGE R&D SPENDING AS % OF SALES

$ MILLIONS 1997 1998 1999 2000 2001 2002^a 2002^b 2003^c 2001–02^d 2002–03^e 2001 2002^f

Air Products^g $114 $112 $123 $124 $123 $123 $121 $122 –1.6% 0.8% 2.2% 2.2%

Albemarle 31 30 34 26 22 22 17 20 –22.7 17.6 2.4 1.9

Cabot^g,h 83 83 73 43 48 48 48 49 0.0 2.1 2.9 2.9

Cromptonⁱ 54 53 68 85 82 88 80 80 –2.4 0.0 3.0 2.9

Cytec Industries 45 43 44 39 32 34 33 37 3.1 12.1 2.3 2.4

Dow Chemical^j 785 807 845 892 1,072 1,000 1,000 1,000 –6.7 0.0 3.9 3.6

Eastman Chemical 191 185 187 149 160 172 157 175 –1.9 11.5 3.0 2.9

Ethyl 42 40 41 40 33 na 52 54 57.6 3.8 4.6 7.2

W.R. Grace 42 47 42 46 50 51 50 50 0.0 0.0 2.9 2.9

Great Lakes^k 42 42 46 40 41 44 28 30 –31.7 7.1 2.6 1.8

Hercules 53 61 85 80 67 na 42 42 –37.3 0.0 2.6 1.6

Lubrizol 88 78 78 86 88 86 93 100 5.7 7.5 4.8 5.0

PPG Industries 250 271 284 282 266 285 265 270 –0.4 1.9 3.3 3.2

Rohm and Haas^l 201 207 236 259 230 242 255 250 10.9 –2.0 4.1 4.5

3M 1,002 1,016 1,038 1,101 1,084 1,150 1,070 1,000 –1.3 –6.5 6.8 6.7

TOTAL $3,023 $3,075 $3,224 $3,292 $3,398
$3,311 $3,279 –2.6% –1.0% 4.0% 4.0%

ANNUAL CHANGE 1.2% 1.7% 4.8% 2.1% 3.2%
–2.6% –1.0%

a January 2002 estimate. b January 2003 estimate. c Budget for 2003. Cabot figure is a C&EN estimate based on conversations with company. d From 2001 actual to January 2003 estimate. e From January 2002 estimate to 2003 budget. f January 2003 estimate as a percentage of estimated 2002 sales. g Fiscal year ends Sept. 30. h Beginning in 2000, excludes Cabot Microelectronics and liquefied natural gas business. i Figures reflect acquisition of Witco in September 1999. j Beginning in 2001, includes Union Carbide, acquired February 2001. k From 2002, excludes Osca Energy Services and Fine Chemicals. l Figures reflect acquisition of LeaRonal in January 1999 and Morton International in June 1999. na = not available.

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RESEARCH SPENDING Overall spending by major chemical companies is forecast to slip again in 2003
						PLANNED	ACTUAL	PLANNED	CHANGE		R&D SPENDING AS % OF SALES
$ MILLIONS	1997	1998	1999	2000	2001	2002^a	2002^b	2003^c	2001–02^d	2002–03^e	2001	2002^f
Air Products^g	$114	$112	$123	$124	$123	$123	$121	$122	–1.6%	0.8%	2.2%	2.2%
Albemarle	31	30	34	26	22	22	17	20	–22.7	17.6	2.4	1.9
Cabot^g,h	83	83	73	43	48	48	48	49	0.0	2.1	2.9	2.9
Cromptonⁱ	54	53	68	85	82	88	80	80	–2.4	0.0	3.0	2.9
Cytec Industries	45	43	44	39	32	34	33	37	3.1	12.1	2.3	2.4
Dow Chemical^j	785	807	845	892	1,072	1,000	1,000	1,000	–6.7	0.0	3.9	3.6
Eastman Chemical	191	185	187	149	160	172	157	175	–1.9	11.5	3.0	2.9
Ethyl	42	40	41	40	33	na	52	54	57.6	3.8	4.6	7.2
W.R. Grace	42	47	42	46	50	51	50	50	0.0	0.0	2.9	2.9
Great Lakes^k	42	42	46	40	41	44	28	30	–31.7	7.1	2.6	1.8
Hercules	53	61	85	80	67	na	42	42	–37.3	0.0	2.6	1.6
Lubrizol	88	78	78	86	88	86	93	100	5.7	7.5	4.8	5.0
PPG Industries	250	271	284	282	266	285	265	270	–0.4	1.9	3.3	3.2
Rohm and Haas^l	201	207	236	259	230	242	255	250	10.9	–2.0	4.1	4.5
3M	1,002	1,016	1,038	1,101	1,084	1,150	1,070	1,000	–1.3	–6.5	6.8	6.7
TOTAL	$3,023	$3,075	$3,224	$3,292	$3,398		$3,311	$3,279	–2.6%	–1.0%	4.0%	4.0%
ANNUAL CHANGE	1.2%	1.7%	4.8%	2.1%	3.2%		–2.6%	–1.0%
a January 2002 estimate. b January 2003 estimate. c Budget for 2003. Cabot figure is a C&EN estimate based on conversations with company. d From 2001 actual to January 2003 estimate. e From January 2002 estimate to 2003 budget. f January 2003 estimate as a percentage of estimated 2002 sales. g Fiscal year ends Sept. 30. h Beginning in 2000, excludes Cabot Microelectronics and liquefied natural gas business. i Figures reflect acquisition of Witco in September 1999. j Beginning in 2001, includes Union Carbide, acquired February 2001. k From 2002, excludes Osca Energy Services and Fine Chemicals. l Figures reflect acquisition of LeaRonal in January 1999 and Morton International in June 1999. na = not available.