Printer Friendly

UNION CARBIDE REPORTS INCREASE IN 2ND QUARTER INCOME

 UNION CARBIDE REPORTS INCREASE IN 2ND QUARTER INCOME
 /NOTE TO EDITOR: On June 30, Union Carbide spun off Praxair, Inc.,


its former industrial gases subsidiary. Though the full financial results of Union Carbide include Praxair as a discontinued business for reporting purposes for the second quarter and first six months of 1992, financial results from continuing operations in this press release reflect Union Carbide as a stand-alone company./
 DANBURY, Conn., July 20 /PRNewswire/ -- Union Carbide Corporation (NYSE: UK) today reported second quarter net income from continuing operations available to common stockholders of $37 million, or $0.28 per common share primary, compared to $18 million, or $0.13 per common share primary, in the second quarter of 1991.
 Earnings from discontinued operations (Praxair, Inc.) totaled $34 million, or $0.26 per common share primary, in the second quarter of 1992. Praxair was spun off on June 30, 1992 and will separately announce its own financial results.
 Union Carbide's current quarter net income from continuing operations included an after-tax gain of $13 million, or $0.10 per share, from the sale of Union Carbide's investment in Exel Limited, a casualty insurance company. In 1991, second quarter net income was reduced by an estimated $25 million, or $0.20 per share, in lost profits due to the interruption of production following an accident at the company's Seadrift, Texas, facility. A further after-tax loss of $14 million, or $0.11 per share, was recognized in the 1991 period from the sale of a transformer retrofill service business. The provision for income taxes was reduced by $7 million, or $0.05 per share, in the second quarter of 1991, mainly as a result of tax credits.
 Union Carbide Chairman Robert D. Kennedy said that second quarter results reflected continuing efforts to drive down fixed costs, and that polyethylene and ethylene glycol volumes were better than last year and up over the first quarter of 1992. He added that solvents and specialty chemicals volumes in the second quarter increased over the same period in 1991, and that prices were steady in both these product areas.
 Kennedy said that margins continued to be very tight in many areas, especially in the polyethylene and ethylene glycol markets. Saying that Carbide and the industry could not count on the marketplace alone to improve results, he noted that Union Carbide benefited from a 13 percent reduction in selling, administrative and other costs compared to the prior year's second quarter. The reduction was due to cost control efforts associated with the company's previously announced profit improvement program.
 Operating profit of $77 million for the second quarter of 1992 increased 18 percent compared to $65 million in the second quarter of 1991. Worldwide sales in the second quarter of $1.26 billion were up four percent from the $1.21 billion for the comparable period in 1991.
 For the first six months of 1992, net income from continuing operations available to common stockholders was $76 million, or 10 percent above the $69 million for the same period in 1991. Primary earnings per common share from continuing operations for the first half of 1992 totaled $0.58, seven percent higher than the $0.54 earned in the first six months of 1991. Worldwide sales totaled $2.44 billion through June 30, a decrease of four percent from the $2.54 billion in 1991.
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 Millions of Dollars
 (Except Per Share Figures)
 Quarter Ended June 30,
 1992 1991(a)
 NET SALES $1,257 $1,212
 DEDUCTIONS (ADDITIONS)
 Cost of sales, exclusive of
 depreciation and amortization,
 shown below 982 913
 Research and development 37 38
 Selling, administrative and other
 expenses(d) 95 109
 Depreciation and amortization 73 70
 Interest on long-term and
 short-term debt 42 54
 Other expense (income) (24) 7
 INCOME BEFORE PROVISION FOR INCOME
 TAXES - CONTINUING OPERATIONS 52 21
 Provision (credit) for
 income taxes 12 (3)
 INCOME OF CONSOLIDATED COMPANIES -
 CONTINUING OPERATIONS 40 24
 Less: Minority stockholders' share
 of income - -
 Plus: UCC share of net loss from
 corporate investments carried
 at equity (1) (2)
 INCOME FROM CONTINUING OPERATIONS 39 22
 Income from discontinued operations,
 net of income taxes and minority
 interest 34 28
 NET INCOME 73 50
 Preferred stock dividend, net of taxes. 2 4
 NET INCOME - COMMON STOCKHOLDERS $ 71 $ 46
 EARNINGS PER COMMON SHARE
 Primary(b) - Income from continuing
 operations $ 0.28 $ 0.13
 - Income from discontinued
 operations $ 0.26 $ 0.23
 - Net income $ 0.54 $ 0.36
 Fully
 diluted(c) - Net income $ 0.51 $ 0.35
 (a) Restated to reflect Praxair as a discontinued business.
 (b) Based on 131,237,191 shares (126,882,138 shares in 1991).
 (c) Based on 150,647,374 shares (142,332,282 shares in 1991).
 (d) Selling, administrative, and other expenses include:
 Selling $ 38 $ 40
 Administrative 35 41
 Other expenses 22 28
 Total $ 95 $ 109
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 Millions of Dollars
 (Except Per Share Figures)
 Six Months Ended June 30,
 1992 1991(a)
 NET SALES $2,444 $2,535
 DEDUCTIONS (ADDITIONS)
 Cost of sales, exclusive of
 depreciation and amortization,
 shown below 1,854 1,879
 Research and development 76 79
 Selling, administrative and other
 expenses(d) 186 215
 Depreciation and amortization 149 145
 Interest on long-term and
 short-term debt 93 113
 Other income (net) (40) (15)
 INCOME BEFORE PROVISION FOR INCOME
 TAXES - CONTINUING OPERATIONS 126 119
 Provision for income taxes 40 35
 INCOME OF CONSOLIDATED COMPANIES -
 CONTINUING OPERATIONS 86 84
 Less: Minority stockholders' share
 of loss - (2)
 Plus: UCC share of net loss from
 corporate investments carried
 at equity (3) (8)
 INCOME FROM CONTINUING OPERATIONS 83 78
 Income from discontinued operations,
 net of income taxes and minority
 interest 67 55
 NET INCOME 150 133
 Preferred stock dividend, net of taxes 7 9
 NET INCOME - COMMON STOCKHOLDERS $ 143 $ 124
 EARNINGS PER COMMON SHARE
 Primary(b) - Income from continuing
 operations $ 0.58 $ 0.54
 - Income from discontinued
 operations $ 0.52 $ 0.44
 - Net income $ 1.10 $ 0.98
 Fully diluted(c) - Net income $ 1.03 $ 0.92
 (a) Restated to reflect Praxair as a discontinued business.
 (b) Based on 130,530,756 shares (126,665,922 shares in 1991).
 (c) Based on 153,054,901 shares (151,826,837 shares in 1991).
 (d) Selling, administrative, and other expenses include:
 Selling $ 73 $ 79
 Administrative 72 81
 Other expenses 41 55
 Total $ 186 $ 215
 -0- 7/20/92
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK) CO: Union Carbide Corporation ST: Connecticut IN: CHM SU: ERN


KD -- NY082 -- 0940 07/20/92 17:08 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 20, 1992
Words:1092
Previous Article:INTELLIGENT ELECTRONICS TO EXPLORE STRATEGIC ALTERNATIVES
Next Article:FLORIDA REGIONAL STOCK REPORT FOR MONDAY, JULY 20
Topics:


Related Articles
UNION CARBIDE REPORTS INCREASE IN THIRD QUARTER INCOME
UNION CARBIDE REPORTS INCREASE IN FOURTH QUARTER INCOME
UNION CARBIDE REPORTS FIRST QUARTER RESULTS
UNION CARBIDE REPORTS SECOND QUARTER NET INCOME OF $38 MILLION COMPANY RAISES COST REDUCTION GOAL TO $575 MILLION
UNION CARBIDE REPORTS 32% INCREASE IN 1ST QUARTER EARNINGS
UNION CARBIDE CORPORATION REPORTS SUBSTANTIAL INCREASE IN THIRD QUARTER NET INCOME
UNION CARBIDE REPORTS SUBSTANTIAL EARNINGS IMPROVEMENT
UNION CARBIDE CORPORATION NET INCOME MORE THAN TRIPLES IN 2ND QUARTER
UNION CARBIDE REPORTS 30% INCREASE IN 4TH QUARTER EARNINGS PER SHARE; RECORD INCOME FOR FULL YEAR 1995
UNION CARBIDE REPORTS COMPLETE 1ST QUARTER RESULTS

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