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UNION CARBIDE REPORTS INCREASE IN THIRD QUARTER INCOME

 UNION CARBIDE REPORTS INCREASE IN THIRD QUARTER INCOME
 DANBURY, Conn., Oct. 22 /PRNewswire/ -- Union Carbide Corporation


(NYSE: UK) today reported third quarter net income from continuing operations available to common stockholders of $23 million, or $0.17 per common share. This compared to a loss of $112 million, or $0.88 per common share, in the third quarter of 1991, which included a special charge of $114 million. Worldwide sales in the third quarter were $1.24 billion, up 4 percent from the $1.19 billion for the same period in 1991.
 Union Carbide Chairman Robert D. Kennedy said that earnings from operations remained relatively flat from the second quarter to the third quarter of this year, as margins continued tight in many areas. "We had strong volumes," Mr. Kennedy said, "but raw material prices escalated. Polyethylene margins were flat quarter to quarter as rising prices offset rising raw material costs. Glycol margins fell."
 Margins in major commodity products declined slightly from the second quarter, but the effect of this decline was more than offset by very favorable results in licensing. Third quarter results also reflected an after-tax charge of $6 million, or $0.05 per common share, from costs associated with the early redemption of the company's 9.35 percent and 8.50 percent debentures in August and September. Union Carbide expects the refinancing of these debentures and of other high cost debt at lower interest rates during the year to reduce its annual interest expense. The provision for income taxes was reduced by about $6 million, or $0.05 per common share, in the third quarter mainly due to tax credits and adjustments.
 The third quarter 1991 after-tax charge of $114 million, or $0.89 per common share, covered severance payments, write-offs of impaired assets and certain other provisions mainly associated with Union Carbide's previously announced profit improvement efforts. The charge also included the before-tax $60 million write-down of the company's share of UOP Inc.'s fluid cracking catalyst business, known as Katalistiks. UOP is jointly owned by Union Carbide and Allied Signal Inc.
 Mr. Kennedy added that the "biggest problem in 1992 is excess glycol capacity in both the U.S. and Far East. New plants on stream in Korea are reducing the size of one of our major U.S. export markets. So until supply and demand are in better balance, margins and profitability will continue to suffer. The rest of '92 will be tough for olefins chain businesses, as will part of '93." Mr. Kennedy pointed out that Union Carbide benefited from an 8 percent reduction in selling, administrative and other costs compared to last year's third quarter, attributable to the company's profit improvement program.
 Operating profit for the third quarter of 1992 was $87 million, compared to a loss of $59 million in the third quarter of 1991.
 For the first nine months of 1992, net income from continuing operations available to common stockholders was $99 million, compared to a loss of $43 million for the comparable period in 1991. Primary earnings per common share from continuing operations for the first nine months of 1992 totaled $0.75, compared to a loss of $0.34 in the first nine months of 1991. Worldwide sales totaled $3.69 billion through Sept. 30, a decrease of 1 percent from the $3.73 billion in 1991.
 UNION CARBIDE CORPORATION AND SUBSIDIARIES
 Consolidated Statement of Income
 (Millions of dollars except per share figures)
 Quarter Ended Sept. 30 1992 1991(A)
 Net sales $1,241 $1,191
 Deductions (additions):
 Cost of sales, exclusive of depreciation and
 amortization, shown below 972 934
 Research and development 37 38
 Selling, administrative and other expenses (D) 92 100
 Depreciation and amortization 70 71
 Interest on long-term and short-term debt 30 61
 Other expenses 3 109
 Income (loss) before provision for income
 taxes - continuing operations 37 (122)
 Provision (credit) for income taxes. 6 (23)
 Income (loss) of consolidated companies -
 continuing operations 31 (99)
 Less: Minority stockholders' share of loss -- (2)
 Plus: UCC share of net loss from corporate
 investments carried at equity (6) (10)
 Income (loss) from continuing operations 25 (107)
 Income from discontinued operations, net of
 income taxes and minority interest -- 23
 Net income (loss) 25 (84)
 Preferred stock dividend, net of taxes 2 5
 Net income (loss) - common stockholders $ 23 $ (89)
 Earnings per common share:
 Primary (B) - Income (loss) from cont. opers. $ 0.17 $(0.88)
 - Income from discontinued opers. $ -- $ 0.18
 - Net income (loss) $ 0.17 $(0.70)
 Fully diluted (C) - Net income (loss) $ 0.17 $(0.70)
 (A) -- Restated to reflect Praxair as a discontinued business.
 (B) -- Based on 135,032,268 shares (127,416,857 shares in 1991).
 (C) -- Based on 135,032,268 shares (127,595,263 shares in 1991).
 (D) -- Selling, administrative, and other expenses include:
 Selling $ 38 $ 36
 Administrative 33 40
 Other expenses 21 24
 Total $ 92 $ 100
 Nine months ended Sept. 30 1992 1991(A)
 Net sales $3,685 $3,726
 Deductions (additions):
 Cost of sales, exclusive of depreciation
 and amortization, shown below 2,826 2,813
 Research and development 113 117
 Selling, administrative and other expenses (D) 278 315
 Depreciation and amortization 219 216
 Interest on long-term and short-term debt 123 174
 Other expense (income) (37) 94
 Income (loss) before provision for
 income taxes - continuing operations 163 (3)
 Provision for income taxes 46 12
 Income (loss) of consolidated companies -
 continuing operations 117 (15)
 Less: Minority stockholders' share of loss -- (4)
 Plus: UCC share of net loss from corporate
 investments carried at equity (9) (18)
 Income (loss) from continuing operations 108 (29)
 Income from discontinued operations, net of
 income taxes and minority interest 67 78
 Net income 175 49
 Preferred stock dividend, net of taxes 9 14
 Net income - common stockholders $ 166 $ 35
 Earnings per common share:
 Primary (B) - Income (loss) from cont. opers. $ 0.75 $(0.34)
 - Income from discontinued opers. $ 0.51 $ 0.61
 - Net income $ 1.26 $ 0.27
 Fully diluted (C) - Net income $ 1.17 $ 0.27
 (A) -- Restated to reflect Praxair as a discontinued business.
 (B) -- Based on 132,197,856 shares (127,074,588 shares in 1991).
 (C) -- Based on 161,035,399 shares (127,252,994 shares in 1991).
 (D) -- Selling, administrative, and other expenses include:
 Selling $ 111 $ 115
 Administrative 105 121
 Other expenses 62 79
 Total $ 278 $ 315
 -0- 10/22/92
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK) CO: Union Carbide Corporation ST: Connecticut IN: CHM SU: ERN


GK -- NY120 -- 3766 10/22/92 15:20 EDT
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Date:Oct 22, 1992
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