SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
December 8, 1998
UNION CARBIDE CORPORATION
(Exact name of registrant as specified in its charter)
New York 1-1463 13-1421730
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
39 Old Ridgebury Rd, Danbury, CT 06817-0001
(Address of principal executive offices) (Zip code)
Registrant's telephone number,
including area code 203-794-2000
Total number of sequentially numbered pages in this filing,
including exhibits thereto: 6
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Item 5. OTHER EVENTS.
See Union Carbide Corporation's press release dated December 8,
1998 accompanying this report as Exhibit 99.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99. Press release, December 8, 1998.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: December 8, 1998
UNION CARBIDE CORPORATION
By /s/ J. Macdonald
J. Macdonald
Assistant Secretary
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EXHIBIT INDEX
Exhibit
99. Press release, dated December 8, 1998.
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Exhibit 99
UNION CARBIDE
NEWS RELEASE
CONTACT: David N. Kernis
(203) 794-6929
UNION CARBIDE COMMENTS ON 4th QUARTER
DANBURY, Conn. Dec. 8 -- Union Carbide Corporation today reported that
fourth quarter operating earnings would decline more than anticipated by the
company at the time of its prior quarter earnings announcement. Although
reported fourth quarter 1998 earnings are likely to meet the current median
analysts' projection of $0.31 per diluted share, the quarter will be impacted
substantially by a gain from the proceeds of a litigation settlement in
connection with the company's UNIPOL Systems business and by several projects
unfavorably affecting operating earnings.
Union Carbide Vice President and Chief Financial Officer John K. Wulff
made the assessment at a conference today of chemical security analysts in New
York, noting that weak chemical markets, particularly in Asia, continued to
depress operating earnings.
He said fourth quarter earnings have also been hurt by unexpected
further delays in restarting the company's Taft, La., plant after a shutdown
to expand capacity and complete routine maintenance. In addition, Mr. Wulff
said, sales lost in November and December during the transition to new
information technology to integrate major work processes were having a greater
impact on the quarter than expected. "Overall, the transition is progressing
well. The nearly completed move to integrated systems should deliver major
benefits to the company and our customers beginning next year," he said.
The Carbide CFO said Carbide capital spending for 1998 would total
around $800 million, some $650 million of which went for expansion and renewal
that should pay off handsomely as the industry moves into the next peak. He
said reduction in the drag on earnings from a number of current projects
nearing completion, combined with the company's ongoing cost reduction
initiatives, should enable earnings to begin recovering even before the
chemical business cycle turns up.
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1998
P3-01-022
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Page 2 of 2
Cautionary Statement for Purposes of the "Safe Harbor" Provisions
Of the Private Securities Litigation Act of 1995
Those statements in the preceding pages that do not reflect historical
information are forward looking statements. Naturally, results can always
differ materially from those that are anticipated. In addition to all
specific assumptions cited, important factors affecting Union Carbide that
could cause results to differ materially from those the corporation is looking
forward to include: the supply/demand balance for the corporation's products,
customer inventory levels, competitive pricing pressures, feedstock costs,
changes in industry production capacities and operating rates, currency
exchange rates, interest rates, global economic conditions, particularly
in Asia, disruption in railroad and other transportation facilities,
competitive technology positions, and failure by the corporation to achieve
technology objectives, cost reduction targets, or complete projects on
schedule.
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