Taking those into account, Chemical's operating earnings increased 16 percent.

As a result, the company said, its operating earnings would fall about 25 percent from last year, to $5 a share.

Chemical's operating earnings were up 48 percent for the quarter.

But despite the strong operating earnings, some analysts said they had expected much better results.

"Based on our progress to date, we continue to believe that operating earnings for 1987 could approach record levels," the company said.

Campbell projects its operating earnings for the year will be $54 million.

The debt was nearly 13 times the company's operating earnings.

"Their operating earnings were a little stronger than I had thought they would be."

"There is no standard agreement on what operating earnings are," he said.

The company had operating earnings of $1.85 a share in fiscal year 1987.