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UNION CARBIDE REPORTS AUDITED 1991 RESULTS; NO CHANGE FROM PRELIMINARY RESULTS ANNOUNCED ON JAN. 27

 UNION CARBIDE REPORTS AUDITED 1991 RESULTS;
 NO CHANGE FROM PRELIMINARY RESULTS ANNOUNCED ON JAN. 27
 DANBURY, Conn., Feb. 12 /PRNewswire/ -- Union Carbide Corporation (NYSE UK) today announced that its audited 1991 results were the same as the preliminary results reported on Jan. 27, 1992. A copy of the press release issued on that date follows.
 Also below are Union Carbide's fourth quarter and full year 1991 statements of income; year-end 1991 balance sheet; and a summary of industrial gases 1991 sales, operating profit and net income.
 -0-
 UNION CARBIDE REPORTS SPECIAL CHARGE
 AND PRELIMINARY NET LOSS FOR FOURTH QUARTER
 DANBURY, Conn., Jan. 27 -- Union Carbide Corporation today reported a fourth quarter before-tax special charge of $70 million ($46 million after-tax, or $0.36 per common share primary), representing additional severance and facility consolidation costs associated with the company's previously announced profit improvement program, as well as costs associated with the proposed spinoff of the industrial gases business.
 Including this charge, the company reported a preliminary net loss for the fourth quarter 1991 of $63 million, or $0.49 per common share primary. In addition to the special charge, fourth quarter 1991 results included a before-tax charge of $13 million ($8 million after-tax, or $0.06 per common share (primary), representing additional costs associated with the wind down of part of the company's Unison Transformer Services businesses. In the second quarter 1991, the company had taken a before-tax charge of $22 million ($14 million after- tax, or $0.11 per common share primary), representing estimated losses on the sale of Unison's transformer retrofill service business.
 Net income available to common shareholders for the same period in 1990 was $7 million, or $0.05 per common share primary, which included an after-tax charge of $86 million, or $0.64 per common share primary, from the sale of a 50 percent interest in the carbon products business. This was partially offset by an after-tax gain of $41 million, or $0.30 per common share primary, from the sale of 50 percent interests in KEMET Electronics Corporation and Lincare Inc.
 Robert D. Kennedy, Union Carbide chairman, noted that efforts undertaken to reduce costs through work process improvement have been accelerated. "The fourth quarter charge reflects costs of implementing these programs, including not only severance but also the consolidation of certain customer service functions and headquarters operations."
 Kennedy added that the fourth quarter 1991 operating results, even excluding the special charge, continued to reflect very competitive market conditions, and a spike in raw material prices that resulted in reduced profit margins, especially for polyethylene and ethylene glycol. Margins were also affected by a protracted maintenance shutdown at the company's largest olefins unit in Texas City, Texas, as well as by the previously reported outage of the Seadrift, Texas, ethylene oxide unit.
 For the full year 1991, Union Carbide reported a preliminary net loss of $28 million, or $0.22 per common share primary, compared to net income of $308 million, or $2.19 per common share primary, in 1990. The 1991 loss included total before-tax special charges associated mainly with the profit improvement program of $220 million ($167 million after- tax, or $1.31 per common share primary), of which $150 million ($121 million after-tax, or $0.95 per common share primary), was recognized in the third quarter 1991. In addition, full year 1991 results reflect before-tax losses of $35 million ($22 million after-tax, or $0.17 per common share primary) resulting from the partial writedown of the Unison business. Operations for 1991 also reflected estimated lost profits of $60 million after taxes, or $0.47 per common share primary, from the Seadrift accident.
 As a result of the proposed spinoff of the industrial gases business to shareholders, previously reported 1991 and 1990 sales have been restated to reflect industrial gases as a discontinued business. The spinoff is expected to be completed by about the end of the second quarter of 1992. On a restated basis, Union Carbide's worldwide sales for the fourth quarter of $1.151 billion decreased 15 percent from the $1.348 billion reported in the same period in 1990. Sales for the full year of $4.877 billion were seven percent lower than the $5.238 billion reported in 1990.
 As a stand-alone company, Union Carbide Industrial Gases Inc. (UCIG) reported fourth quarter sales of $617 million, a 15 percent increase over the $538 million in the same period 1990. For the full year, UCIG sales totalled $2.469 billion, up two percent from the $2.420 billion in 1990. The 1991 sales included the consolidation of Argon S.A. in Spain and Italiana Gas Industriali S.p.A. in Italy that UCIG previously carried at equity.
 UCIG's net income for the fourth quarter 1991 was $29 million. This was a 17 percent decrease from the $35 million reported in the fourth quarter 1990, which included a non-recurring after-tax gain of $10 million from the sale of UCIG's 50 percent interest in Lincare Inc.
 For the full year, UCIG net income totalled $107 million, including the company's share of the special charge associated with the profit improvement program of $7 million. Net income for full year 1990 was $120 million.
 H. William Lichtenberger, chairman and CEO designate of UCIG, expressed dissatisfaction with the operating results, even given the sluggish economy. He confirmed that the business is committed to improved financial performance through aggressive cost reduction efforts and capital investments for growth.
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 Millions of Dollars
 (Except Per Share Figures)
 Quarter Ended Dec. 31,
 1991(a) 1990(a)(b)
 Net Sales $1,151 $1,348
 Deductions (additions)
 Cost of sales, exclusive of
 depreciation and
 amortization shown below 957 1,012
 Research and development 40 42
 Selling, administrative,
 and other expenses(f) 93 130
 Depreciation and amortization 71 69
 Interest on long-term and
 short-term debt 54 72
 Other expense (income)(c) 80 (34)
 Income (loss) before provision
 for income taxes -
 Continuing operations (144) 57
 Provision (credit) for income taxes (62) 26
 Income (loss) of consolidated companies -
 Continuing operations (82) 31
 Less: Minority stockholders' share
 of income (loss) 2 (2)
 Plus: UCC share of net income (loss)
 from corporate investments carried
 at equity (3) (61)
 Income (loss) from continuing operations (87) (28)
 Income from discontinued operations, net
 of income taxes and minority interest 29 35
 Net income (loss) (58) 7
 Preferred stock dividend, net of taxes 5 -
 Net income (loss) - common stockholders $ (63) $ 7
 Earnings (loss) per common share
 Primary(d) - Income (loss) from
 continuing operations $(0.72) $(0.21)
 - Income from discontinued
 operations $ 0.23 $ 0.26
 - Net income (loss) $(0.49) $ 0.05
 Fully
 diluted(e) - Income (loss) from
 continuing operations $(0.72) $(0.20)
 - Income from discontinued
 operations $ 0.23 $ 0.25
 - Net income (loss) $(0.49) $ 0.05
 (a) Restated to reflect Industrial Gases as a discontinued business.
 (b) Restated to reflect UCAR Carbon under the equity method of accounting.
 (c) Includes for 1991 a $70 million charge relating to the company's profit improvement program.
 (d) Based on 127,351,642 shares (134,938,017 shares in 1990).
 (e) Based on 127,416,632 shares (142,496,157 shares in 1990).
 (f) Selling, administrative, and other expenses include:
 Selling $ 36 $ 47
 Administrative 36 54
 Other expenses 21 29
 Total $ 93 $ 130
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 Millions of Dollars
 (Except Per Share Figures)
 Twelve Months Ended Dec. 31,
 1991(a) 1990(a)(b)
 Net sales $4,877 $5,238
 Deductions (additions)
 Cost of sales, exclusive of
 depreciation and
 amortization shown below 3,770 3,872
 Research and development 157 157
 Selling, administrative, and other
 expenses(f) 408 466
 Depreciation and amortization 287 278
 Interest on long-term and
 short-term debt 228 269
 Other expense (income)(c) 174 (169)
 Income (loss) before provision for
 income taxes - Continuing operations (147) 365
 Provision (credit) for income taxes (50) 130
 Income (loss) of consolidated companies -
 Continuing operations (97) 235
 Less: Minority stockholders' share of
 income (loss) (2) 5
 Plus: UCC share of net income (loss)
 from corporate investments carried
 at equity (21) (42)
 Income (loss) from continuing operations (116) 188
 Income from discontinued operations, net
 of income taxes and minority interest 107 120
 Net income (loss) (9) 308
 Preferred stock dividend, net of taxes 19 -
 Net income (loss) - Common stockholders $ (28) $ 308
 Earnings (loss) per common share
 Primary(d) - Income (loss) from
 continuing operations $(1.06) $ 1.34
 - Income from discontinued
 operations $ 0.84 $ 0.85
 - Net income (loss) $(0.22) $ 2.19
 Fully
 diluted(e) - Income (loss) from
 continuing operations $(1.06) $ 1.34
 - Income from discontinued
 operations $ 0.84 $ 0.79
 - Net income (loss) $(0.22) $ 2.13
 (a) Restated to reflect Industrial Gases as a discontinued business.
 (b) Restated to reflect UCAR Carbon under the equity method of accounting.
 (c) Includes for 1991 a $209 million charge relating to the company's profit improvement program.
 (d) Based on 126,776,208 shares (141,012,196 shares in 1990).
 (e) Based on 126,841,198 shares (152,635,571 shares in 1990).
 (f) Selling, administrative, and other expenses include:
 Selling $ 151 $ 166
 Administrative 157 190
 Other expenses 100 110
 Total $ 408 $ 466
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEET(a)
 Millions of Dollars
 at December 31,
 1991 1990(b)
 Assets
 Cash and cash equivalents $ 64 $ 54
 Notes and accounts receivable 846 1,103
 Inventories 529 582
 Due from Union Carbide Industrial Gases 1,038 -
 Other current assets 164 477
 Total current assets 2,641 2,216
 Net fixed assets 2,499 2,386
 Investments and advances 603 728
 Due from Union Carbide Industrial Gases - 989
 Net assets of discontinued business 650 645
 Other assets 433 425
 Total assets $ 6,826 $ 7,389
 Liabilities and stockholders' equity
 Accounts payable $ 496 $ 530
 Short-term debt (including payments due
 within one year on long-term debt) 1,282 825
 Other accrued liabilities 654 733
 Total current liabilities 2,432 2,088
 Long-term debt 1,160 2,058
 Other long-term obligations 415 275
 Deferred credits 543 513
 Minority stockholders' equity in
 consolidated subsidiaries 13 82
 Convertible preferred stock 324 325
 Unearned employee compensation (300) (325)
 UCC stockholders' equity 2,239 2,373
 Total liabilities and stockholders'
 equity $ 6,826 $ 7,389
 (a) Restated to reflect Industrial Gases as a discontinued business.
 (b) Restated to reflect UCAR Carbon under the equity method of accounting.
 SUMMARY OF INDUSTRIAL GASES STAND-ALONE RESULTS
 Industrial Gases
 Millions of Dollars
 Fourth Quarter Twelve Months
 1991 1990 1991 1990
 Net Sales $ 617a $ 538 $2,469a $2,420
 Operating Profit $ 77a $ 59 $ 324a,b $ 409
 Net Income
 (Industrial Gases Share) $ 29 $ 35c $ 107b $ 120c
 Industrial Gases Less Brazil
 Millions of Dollars
 Fourth Quarter Twelve Months
 1991 1990 1991 1990
 Net Sales $ 497a $ 401 $1,965a $1,567
 Operating Profit $ 70a $ 42 $ 264a,b $ 197
 Net Income
 (Industrial Gases Share) $ 33 $ 28 $ 87b $ 85c
 Brazil
 Millions of Dollars
 Fourth Quarter Twelve Months
 1991 1990 1991 1990
 Net Sales $ 120 $ 137 $ 504 $ 853
 Operating Profit $ 7 $ 17 $ 60 $ 212
 Net Income (Loss)
 (Industrial Gases Share) $ (4) $ 7 $ 20 $ 35
 (a) 1991 results include the consolidation of Argon SA and
 Italiana Gas Industriali S.p.A. formerly equity companies;
 annual sales of $254 million and annual operating profit of
 $42 million.
 (b) Operating Profit and Net Income includes a charge of $11
 million and $7 million, respectively for the profit
 improvemement program.
 (c) Includes a gain of $10 million from the sale of Industrial
 Gases equity investment in Lincare, Inc.
 -0- 2/12/92 R
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK) CO: Union Carbide Corporation ST: Connecticut IN: CHM SU: ERN


PS -- NY064 -- 9483 02/12/92 18:27 EST
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