Printer Friendly

UNION CARBIDE BOOSTS SHAREHOLDER VALUE DESPITE TOUGH ECONOMIC TIMES, COMPANY CHAIRMAN ROBERT KENNEDY TELLS SHAREHOLDERS AT ANNUAL MEETING

 DANBURY, Conn., April 28 /PRNewswire/ -- Union Carbide Corporation (NYSE: UK) accomplished a great deal for shareholders last year despite difficult worldwide economic conditions, according to Chairman Robert D. Kennedy.
 Speaking to shareholders today at the corporation's annual meeting, Mr. Kennedy said that company earnings exceeded expectations, given the difficult market conditions for much of the year, and did so again in the first quarter of this year. Even though first quarter 1993 net income of $40 million, or $0.28 per share, is about the same as last year's first quarter, Mr. Kennedy said it is also quite a bit more than many chemical analysts expected in the face of poor business conditions.
 Mr. Kennedy said that tough conditions notwithstanding, Carbide continued to build shareholder value in 1992, with one of the major achievements being the tax-free spin-off to shareholders of the company's industrial gases business. The spin-off unlocked value in both companies, whose combined share price today is almost double the price of Carbide shares when spin-off plans were first announced, and almost double what Carbide alone was the day the new shares first traded separately.
 "Even more important for the future, our identity, strategy and direction are all clearly defined after the spin-off, and we will do what it takes to maintain and extend our competitive advantage in high-volume chemicals and polymers," Mr. Kennedy said. "That means investment and focused research and development to maintain technology leadership and market share; continuous improvement in productivity and efficiency; total dedication to Carbide customers' product and service needs; and full commitment to safely operating our worldwide plants."
 Mr. Kennedy said that Carbide is already benefiting from its focused strategic direction. "Our profit improvement target, set in 1990 and enlarged again in 1991, was to reduce our costs by $400 million a year by the end of 1994," explained Carbide's chairman. "Our workforce is slashing costs and improving operations so dramatically that we now expect to achieve our goal during 1993 -- more than a year ahead of schedule. Carbiders understand that our competitive position has an important bearing on the company's future, and on their careers and compensation."
 Though Carbide will continue to raise productivity by means of work process improvement, Mr. Kennedy said gains from now on will result mainly from investment to grow and to extend the company's technology leadership, while keeping a lid on costs.
 For example, the company's new 650 million-pounds-per-year UNIPOL polyethylene facility to be built in Louisiana will use advanced technology to create new and better polyethylene resins aimed at replacing high-pressure process polyethylenes currently in short supply. "Fabricators of industrial liners, trash bags, construction and agricultural films that use these higher-cost polyethylenes will be able either to lower the cost of making the same quality products they're making now, or for about the same cost, make still better and stronger products," said Mr. Kennedy. "And they can go either way with the same equipment they're now using."
 Mr. Kennedy said Carbide has also improved its balance sheet with the sale of some $160 million of assets in 1992, the call of convertible debentures successfully completed last month, and the recently announced sale of its OrganoSilicon business for $300 million. "We've reached the goals announced two years ago: debt down to about $1 billion, and a debt-to-capital ratio of 40 percent," Mr. Kennedy said. "This lowers interest costs, increases the confidence of the agencies that set credit ratings, and results in favorable borrowing rates."
 Though Carbide feels good about its progress, success also depends on meeting its health, safety and environmental responsibilities. "Carbide is among the leaders in its industry in assessing -- and publicly reporting -- its performance against the industry's comprehensive and demanding Responsible Care(R) codes," said Mr. Kennedy. The Responsible Care initiative is the chemical industry's public commitment to follow specific management practices aimed at upgrading environmental performance.
 Mr. Kennedy said that the company's recently published Responsible Care progress report marks Carbide as the first in the industry to commit itself to an all-encompassing Responsible Care goal of having all 106 practices in place by the end of 1996.
 "There is always more to do to improve performance. Our air and water must be safe," concluded Mr. Kennedy. "Carbide neighbors have a right to be safe and to feel safe living near our plants. We want to work with our neighbors, and we do."
 -0- 4/28/93
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK)


CO: Union Carbide Corporation ST: Connecticut IN: CHM SU:

GK -- NY043 -- 1903 04/28/93 10:45 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 28, 1993
Words:761
Previous Article:NEWELL COMPANY $153 MILLION OF SENIOR DEBT RATED 'A' BY DUFF & PHELPS
Next Article:INTERFACE DECLARES REGULAR QUARTERLY DIVIDEND
Topics:


Related Articles
UNION CARBIDE ANNOUNCES RESTRUCTURING PLAN
UNION CARBIDE DECLARES 301ST CONSECUTIVE DIVIDEND
UNION CARBIDE REPORTS ASSET SALES OF $150 MILLION; NEGOTIATIONS CONTINUE FOR SALE OF ORGANOSILICON BUSINESS
W. H. JOYCE ELECTED UNION CARBIDE PRESIDENT; BOARD ANNOUNCES REPURCHASE PROGRAM; APPROVES MANAGEMENT STOCK OWNERSHIP REQUIREMENTS
UNION CARBIDE INCREASES SHARE REPURCHASE PROGRAM
UNION CARBIDE SETS PLAN FOR SUCCESSION; CHAIRMAN KENNEDY TO PASS CEO TORCH IN APRIL
UNION CARBIDE CHAIRMAN KENNEDY PRAISES EMPLOYEE INGENUITY AT ANNUAL MEETING; PRESIDENT JOYCE OUTLINES GROWTH PLANS
WILLIAM JOYCE ELECTED CHIEF EXECUTIVE OFFICER OF UNION CARBIDE; COMPANY DECLARES 312TH CONSECUTIVE DIVIDEND
Union Carbide in Good Shape to Weather Cyclical Downturn Chairman William Joyce Tells Shareholders.
Union Carbide Performing Well During Trough Environment Chairman William Joyce Tells Shareholders.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters