21.   Galvin said the problems included pricing pressures and weakening demand in semiconductors, coupled with startup costs and depreciation from adding new capacity.

22.   GE plastics and silicones did well, despite soaring chemical costs, primarily because demand was high and no new capacity came on stream.

23.   He added that the new audio capacities would be promoted with AOL Plus, the broadband service that it is scheduled to begin selling to some customers this summer.

24.   Historically, the chip business has swung between gluts and shortages because when new capacity comes online, it comes in big chunks.

25.   In addition, no new capacity is expected to come on stream.

26.   In China, the company may acquire from within the fragmented local brewing industry or build new capacity in the next two to three years, Cox said.

27.   In the second half he expects the situation to reverse, with prices under pressure and unit sales rising as the company brings new capacity on stream.

28.   It will be the largest single addition of new capacity in domestic refining in two decades.

29.   Moreover, he said, increasing demand in Asia would soak up the new capacity there.

30.   Most new capacity will be fueled by natural gas, coal and hydropower.