CHELSEA <CHD> SEES LOWER 2ND QTR NET Chelsea Industries Inc said earnings for its fiscal second quarter ended March 30 will be "sharply lower" than the 1,414,000 dlrs or 55 cts a share it earned for the same quarter last year. It also said it lowered its earnings forecasts for the remainder of the fiscal year. In fiscal 1986, the company earned 7,206,000 dlrs or 2.78 dlrs a share. The company cited intensely competitive market conditions in its polyethelyne trash liner business and startup costs related to its acquisition of Artisan Plastic for the reduced earnings outlook.