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UNION CARBIDE REPORTS INCREASE IN FOURTH QUARTER INCOME

 DANBURY, Conn., Jan. 27 /PRNewswire/ -- Union Carbide Corporation today reported preliminary fourth quarter net income from continuing operations available to common stockholders of $17 million, or $0.12 per common share.
 Fourth quarter 1992 results included after-tax expenses of $4 million, or $0.03 per common share, representing post-retirement benefit costs from adopting Financial Accounting Statement (FAS) 106. Union Carbide announced in December that it was adopting the new standard, which establishes guidelines for calculating a corporation's obligation for nonpension retiree benefits, including health coverage and life insurance.
 Union Carbide also recognized after-tax charges of $22 million, or $0.16 per common share, representing additional severance expenses related to the corporation's profit improvement program. This charge mainly reflects an increase in estimated personnel reductions due, in part, to one of Union Carbide's joint ventures and to a third party- operated facility. The impact of this charge was offset by after-tax income of $15 million, or $0.11 per common share, from the settlement of a patent infringement case; $8 million, or $0.06 per common share, from the sale of the corporation's remaining investment in Exel Limited, a casualty insurance company; and $6 million, or $0.04 per common share, from the sale of one of two corporate aircraft.
 In the fourth quarter of 1991, Union Carbide reported a loss of $92 million from continuing operations, or $0.72 per common share. This included a special charge of $46 million, or $0.36 per common share, representing severance and facility consolidation costs associated with the profit improvement program, and other expenses from the spin-off of the industrial gases business. Fourth quarter 1991 results also included a charge of $8 million, or $0.06 per common share, representing additional costs associated with the wind-down of part of the company's Unison Transformer Services businesses.
 Worldwide sales in the fourth quarter of 1992 were $1.187 billion, up three percent from the $1.151 billion for the same period in 1991.
 Union Carbide Chairman Robert D. Kennedy said that the fourth quarter 1992 operating results reflected the slow pace of the economic recovery in the U.S., and the effect of industry expansions in the late 1980's. "Until demand catches up with supply," said Mr. Kennedy, "we will continue to experience very tight margins in our major product lines." He noted that for the full year, Union Carbide's selling, administrative and other expenses were below 1991 levels, even though fourth quarter costs in this area increased due to one-time, extraordinary expenses.
 "We continue to make progress implementing our cost reduction program," Mr. Kennedy added, "and we now expect to meet our $400 million target by the end of 1993 instead of year-end 1994, as originally planned."
 For the full year 1992, Union Carbide reported preliminary net income from continuing operations available to common stockholders of $107 million, or $0.76 per common share, compared to a net loss of $135 million, or $1.06 per common share, in 1991. The 1992 results from continuing operations have been reduced by $16 million after-tax, or $0.12 per common share, as a result of the adoption of FAS 106.
 The 1991 loss from continuing operations included total special charges of $160 million, or $1.25 per common share, mainly associated with the profit improvement program. Operations for 1991 also reflected estimated lost profits of $60 million after taxes, or $0.47 per common share, from the accident and temporary shutdown of certain operations at the company's Seadrift, Texas, facility.
 Sales for the full year 1992 of $4.872 billion were just about the same as the $4.877 billion reported in 1991.
 Union Carbide reported a net loss for the full year 1992 of $187 million, or $1.46 per common share. This includes, in addition to income from continuing operations, income from discontinued operations of $67 million, representing earnings of Praxair, Inc. prior to its spin-off on June 30, 1992, and an after-tax charge of $361 million, reflecting the cumulative prior years' effect of the FAS 106 and 109 accounting changes previously announced.
 Union Carbide Corporation is a basic chemicals company with many of the industry's most advanced process technologies and some of the most efficient large-scale chemical production facilities found anywhere in the world.
 Union Carbide is:
 -- Among the largest manufacturers of polyethylene, the world's most widely used plastic, and the technology leader in this industry.
 -- The world's largest producer of ethylene oxide and its derivatives, including ethylene glycol, used for polyester fiber, resin and film, automotive antifreeze and other products.
 -- The leading North American supplier of solvents and intermediates to the paint and coatings industry.
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 Preliminary Consolidated Statement of Income
 (In millions except per share amounts - Unaudited)
 Quarter Ended Dec. 31, 1992(A) 1991
 NET SALES $1,187 $1,151
 DEDUCTIONS
 Cost of sales, exclusive of
 depreciation and amortization,
 shown separately below 915 957
 Research and development 40 40
 Selling, administrative and other
 expenses 100 93
 Depreciation and amortization 74 71
 Interest on long-term and
 short-term debt 23 54
 Other expense 4 80
 INCOME (LOSS) BEFORE PROVISION FOR
 INCOME TAXES-CONTINUING OPERATIONS 31 (144)
 Provision (credit) for income taxes 8 (62)
 INCOME (LOSS) OF CONSOLIDATED
 COMPANIES-CONTINUING OPERATIONS 23 (82)
 Less: Minority stockholders' share
 of income -- 2
 Plus: UCC share of net loss from
 corporate investments carried
 at equity (4) (3)
 INCOME (LOSS) FROM CONTINUING
 OPERATIONS $ 19(B) $ (87)(C)
 Income from discontinued operations,
 net of income taxes and minority
 interest -- 29
 Net income (loss) 19 (58)
 Preferred stock dividends, net of
 income taxes 2 5
 NET INCOME (LOSS)-COMMON STOCKHOLDERS $ 17 $ (63)
 EARNINGS PER COMMON SHARE
 Primary(D) - Income (loss) from
 continuing operations $ 0.12 $(0.72)
 - Income from discontinued
 operations $ -- $ 0.23
 - Net income (loss)-
 common stockholders $ 0.12 $(0.49)
 (A) Reflects the adoption of FAS 106 and FAS 109.
 (B) Includes after-tax income of $15 million from settlement of a patent infringement case; $8 million from the corporation's sale of its remaining interest in Exel Limited; and $6 million from the sale of a corporate aircraft. Includes after-tax charges of $4 million representing post-retirement benefits upon adoption of FAS 106 and $22 million representing additional severance expenses related to the corporation's profit improvement program.
 (C) Includes an after-tax special charge of $46 million for costs mainly associated with the company's profit improvement program.
 (D) Based on 135,314,411 shares (127,351,642 in 1991). Fully diluted loss per share in 1992 and 1991 was antidilutive.
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 Preliminary Consolidated Statement of Income
 (In millions except per share figures - Unaudited)
 Year Ended Dec. 31, 1992(A) 1991
 NET SALES $4,872 $4,877
 DEDUCTIONS (ADDITIONS)
 Cost of sales, exclusive of
 depreciation and amortization,
 shown separately below 3,750 3,770
 Research and development 155 157
 Selling, administrative and other
 expenses 383 408
 Depreciation and amortization 293 287
 Interest on long-term and
 short-term debt 146 228
 Other expense (income) (33) 174
 INCOME (LOSS) BEFORE PROVISION FOR
 INCOME TAXES-CONTINUING OPERATIONS 178 (147)
 Provision (credit) for income taxes 45 (50)
 INCOME (LOSS) OF CONSOLIDATED COMPANIES -
 CONTINUING OPERATIONS 133 (97)
 Less: Minority stockholders' share
 of loss -- (2)
 Plus: UCC share of net loss from
 corporate investments carried
 at equity (14) (21)
 INCOME (LOSS) FROM CONTINUING
 OPERATIONS $ 119(B) $ (116)(C)
 Income from discontinued operations,
 net of income taxes and minority
 interest 67 107
 NET INCOME (LOSS)-BEFORE CUMULATIVE
 EFFECT OF CHANGE IN ACCOUNTING
 PRINCIPLES $ 186 $ (9)
 Cumulative effect of change in
 accounting principles (361) --
 Net loss (175) (9)
 Preferred stock dividends, net of
 income taxes 12 19
 NET LOSS - COMMON STOCKHOLDERS $ (187) $ (28)
 EARNINGS PER COMMON SHARE
 Primary(D) - Income (loss) from
 continuing operations $ 0.76 $(1.06)
 - Income from discontinued
 operations $ 0.51 $ 0.84
 - Cumulative effect of
 change in accounting
 principles $(2.73) $ -
 - Net loss - common
 stockholders $(1.46) $(0.22)
 (A) Reflects the adoption of FAS 106 and FAS 109.
 (B) Includes after-tax income of $21 million on the sale of the corporation's investments in Exel Limited; $15 million from settlement of a patent infringement case; and $6 million from the sale of a corporate aircraft. Includes after-tax charges of $16 million for the full year effect of the adoption of FAS 106 and $22 million representing additional severance expenses related to the corporation's profit improvement program.
 (C) Includes after-tax special charges of $160 million for costs mainly associated with the company's profit improvement program.
 (D) Based on 132,349,473 shares (126,776,208 in 1991). Fully diluted loss per share in 1992 and 1991 was antidilutive.
 -0- 1/27/93
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK)


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

SM -- NY016 -- 9445 01/27/93 08:35 EST
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Date:Jan 27, 1993
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