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UNION CARBIDE REPORTS SPECIAL CHARGE AND PRELIMINARY NET LOSS FOR FOURTH QUARTER

 UNION CARBIDE REPORTS SPECIAL CHARGE AND
 PRELIMINARY NET LOSS FOR FOURTH QUARTER
 DANBURY, Conn., Jan. 27 /PRNewswire/ -- Union Carbide Corporation (NYSE: UK) 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 winddown 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 7 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 totaled $2.469 billion, up 2 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 totaled $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.
 Following are highlights of the Union Carbide preliminary report:
 UNION CARBIDE CORPORATION
 (Millions of dollars except per share)
 Fourth Quarter Pct. Full Year Pct.
 1991 1990 Chng. 1991 1990 Chng.
 Net Sales $1,151 $1,348(A) -15 $4,877 $5,238(A) -7
 Income (Loss)
 from Continuing
 Operations (87)(B) (28)(C) -- (116)(B) 188 --
 Income from
 Discontinued
 Operations (UCIG) 29 35(D) -17 107(E) 120(D) -11
 Net Income (Loss) (58) 7 -- (9) 308 --
 Preferred Stock
 Dividends 5 -- -- 19 -- --
 Net Income (Loss)
 Available To
 Common
 Stockholders $ (63) $ 7 -- $ (28) $ 308 --
 Primary Earnings
 (Loss) Per Share $(0.49) $ 0.05 -- $(0.22) $ 2.19 --
 Average Shares
 Outstanding
 (In Thousands) 127,352 134,938 -6 126,776 141,012 -10
 Fully Diluted
 Earnings (Loss)
 Per Share $(0.49) $ 0.05 -- $(0.22) $ 2.13 --
 Average Shares
 Outstanding
 (In Thousands) 127,417 142,496 126,841 152,636
 (A) -- Restated to reflect industrial gases as a discontinued business as a result of the proposed spinoff of the industrial gases business to shareholders. The spinoff is expected to be completed by about the end of the second quarter of 1992. Sales of the discontinued industrial gases business for the fourth quarter were $617 million, up 15 percent from the $538 million in 1990. For the full year, sales were $2.469 billion, up 2 percent from $2.420 billion in 1990. Fourth quarter and full year 1991 amounts include the consolidation of Argon S.A. and Italiana Gas Industriali S.p.A., formerly equity companies. Sales of these two companies were $64 million and $254 million for the fourth quarter and full year, respectively.
 (B) -- Includes an after-tax special charge in the fourth quarter of $46 million, or $0.36 per common share primary, and special charges for the full year of $160 million, or $1.25 per common share primary, for costs mainly associated with the company's previously announced profit improvement program.
 (C) -- Includes a non-recurring 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 $31 million, or $0.23 per common share primary, from the sale of Union Carbide's 50 percent interest in KEMET Electronics Corporation.
 (D) -- Includes an after-tax gain of $10 million, or $0.07 per common share primary, from the sale of UCIG's 50 percent interest in Lincare Inc.
 (E) -- Includes an after-tax special charge for the full year of $7 million, or $0.06 per common share primary, for costs associated with the company's previously announced profit improvement program.
 1991 Special Charges
 (Millions of dollars)
 Before Tax After Tax
 3rd Q 4th Q Year 3rd Q 4th Q Year
 Severance & Relocation $ 58 $ 59 $117 $ 39 $ 39 $ 78
 Joint Venture
 Charges (A) $ 60 -- $ 60 $ 61 -- $ 61
 Legal and other (B) $ 20 $ 11 $ 31 $ 12 $ 7 $ 19
 Canadian Subsidiary
 Restructuring $ 12 - $ 12 $ 9 - $ 9
 Total $150(C) $ 70 $220 $121(C) $ 46 $167
 (A) -- Includes charges of $60 million before-tax ($51 million after-tax) for Union Carbide's share of the writedown of the fluid cracking catalyst business, known as Katalistiks, of UOP Inc. (a partnership in which Union Carbide owns a 50 percent interest).
 (B) -- Includes, for the fourth quarter of 1991, anticipated costs related to the proposed spinoff of the industrial gases business.
 (C) -- Includes charges of $11 million before-tax ($7 million after- tax) related to the industrial gas company's share of the special charge associated with the profit improvement program.
 -0- 1/27/92
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK) CO: Union Carbide Corporation ST: Connecticut IN: OIL SU: ERN


GK -- NY069 -- 3798 01/27/92 13:33 EST
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Date:Jan 27, 1992
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