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UNION CARBIDE TO ADOPT NEW FASB POST-EMPLOYMENT BENEFIT ACCOUNTING STANDARD; CHARGE AGAINST 4TH QUARTER EARNINGS REFLECTS FULL OBLIGATION

 DANBURY, Conn., Dec. 21 /PRNewswire/ -- Union Carbide Corporation (NYSE: UK) today announced that it will take a one-time, "noncash" charge to net income in the fourth quarter of 1992 of approximately $360 million after taxes for post-employment benefits.
 The charge represents the cumulative prior years' effect of a new accounting method required by the Financial Accounting Standards Board (FASB 106). Union Carbide had noted in its 1991 annual report that it was likely to charge the full FASB 106 obligation to operations at the time the standard was adopted. The charge is considered "noncash" because the company must accrue for estimated future post-employment benefits although it will continue to pay expenses when incurred.
 In addition to the one-time charge, the new FASB standard also requires the company to restate its 1992 earnings from continuing operations to include the current year effect, which will reduce reported earnings from continuing operations for the first three quarters of the year by approximately $12 million after taxes ($0.09 per common share). Through the first nine months of the year, Union Carbide reported earnings from continuing operations of $108 million ($0.75 per common share). The full year impact of FASB 106 will be about $15 million after taxes ($0.12 per common share), and will be apportioned to each of the 1992 quarters.
 Union Carbide Vice President and Controller John K. Wulff said the company's obligation is approximately 20 percent higher than the $300 million estimate made in the 1991 annual report. This is due to the inclusion of the company's unconsolidated joint ventures and the use of more conservative actuarial assumptions to reflect, among other factors, early retirements associated with the company's cost reduction efforts. Union Carbide also announced its intent to adopt the new required accounting standard for income taxes (FASB 109). The new method will not have a material effect on 1992 earnings or stockholders equity.
 The Financial Accounting Standards Board is an independent board responsible for establishing and interpreting generally accepted accounting principles.
 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. In 1991, Union Carbide had sales of nearly $5 billion.
 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.
 -0- 12/21/92
 /CONTACT: Tomm F. Sprick of Union Carbide Corporation, 203-794-6992/
 (UK)


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

AH -- NY058 -- 0150 12/21/92 12:47 EST
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Publication:PR Newswire
Date:Dec 21, 1992
Words:470
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