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)
September 18, 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
<PAGE>
Item 5. OTHER EVENTS.
(a) See Union Carbide Corporation's Computation of Ratio of
Earnings to Fixed Charges for the six months ended June 30,
1998 and the years ended December 31, 1997, 1996, 1995, 1994
and 1993 accompanying this report as Exhibit 12.
(b) See Union Carbide Corporation's press release dated September
18, 1998 accompanying this report as Exhibit 99.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
12. Computation of Ratio of Earnings to Fixed Charges
for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996, 1995, 1994 and 1993.
99. Press release, September 18, 1998.
<PAGE>
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: October 22, 1998
UNION CARBIDE CORPORATION
By /s/J. Macdonald
J. Macdonald
Assistant Secretary
<PAGE>
EXHIBIT INDEX
Exhibit
12. Computation of Ratio of Earnings to Fixed Charges for the six months
ended June 30, 1998 and the years ended December 31, 1997, 1996, 1995,
1994 and 1993.
99. Press release, dated September 18, 1998.
<TABLE>
Exhibit 12
Union Carbide Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Millions of dollars, except ratios)
<CAPTION>
Six Months
Ended
June 30, Year Ended
1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Fixed Charges:
Interest expensed 56 79 76 89 80 70
Interest capitalized 21 51 45 30 12 10
Amortized premiums/discounts
related to indebtedness - - - - - -
Amortized capitalized expenses
related to indebtedness - - - - - -
Estimate of the interest within rental expense 9 18 18 22 22 33
Preference security dividend requirements
of consolidated subsidiaries - 35 - - - -
Charges arising from guarantees of equity
investees 32 58 13 - - -
Total Fixed Charges 118 241 152 141 114 113
Earnings
Pretax income from continuing operations 379 966 845 1,259 471 227
Less:
Partnership income 64 133 144 152 98 67
Sub-total 315 833 701 1,107 373 160
Add:
Fixed charges 118 241 152 141 114 113
Amortization of capitalized interest 7 14 12 11 10 10
Distributed income of equity investees 61 126 141 97 128 92
UCC's share of pre-tax losses of equity
investees for which charges arising from
guarantees are included in fixed charges (23) (43) (22) - - -
Less:
Interest capitalized 21 51 45 30 12 10
Preference security dividend requirements
of consolidated subsidiaries - 35 - - - -
Minority interest in pre-tax income of
subsidiaries that have not incurred
fixed charges - - - - - -
Total Earnings 457 1,085 939 1,326 613 365
Ratio of Earnings to Fixed Charges 3.9 4.5 6.2 9.4 5.4 3.2
<FN>
For the purpose of calculating the ratio of earnings to fixed charges, earnings consist of pre-tax
income of consolidated companies from continuing operations before adjustment for minority
interests in consolidated subsidiaries or loss from equity investees plus (a) fixed charges,
(b) amortization of capitalized interest, (c) distributed income of equity investees and (d) the
Company's share of pre-tax losses of equity investees for which charges arising from guarantees
are included in fixed charges less (a) interest capitalized, (b) preference security dividend
requirements of consolidated subsidiaries, and (c) the minority interest in pre-tax income of
subsidiaries that have not incurred fixed charges. Fixed charges means the sum of (a) interest
expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to
indebtedness, (c) an estimate of the interest within rental expense and (d) preference security
dividend requirements of consolidated subsidiaries. The Company has a 45 percent equity investment
in Equate Petrochemical Company ("Equate"). During 1998, 1997, and the last quarter of 1996, the
Company severally guaranteed 45 percent of Equate's long-term debt and working capital financing
needs. During the first three quarters of 1996, the Company severally guaranteed up to
$225 million of Equate's interim debt. Interest charges associated with guarantees of outstanding
borrowings totaled $32 million, $58 million and $13 million for the six months ended June 30, 1998
and the years ended December 31, 1997 and 1996, respectively, and have been included, along with
the Company's equity in Equate's pre-tax loss for the same periods, in the calculation of the
ratio of earnings to fixed charges.
<TABLE/>
</TABLE>
Exhibit 99
UNION CARBIDE
NEW RELEASE
CONTACT: David N. Kernis
(203) 794-6929
UNION CARBIDE REPORTS THAT DETERIORATING BASIC CHEMICAL PRICES WILL FURTHER
AFFECT THIRD QUARTER RESULTS
DANBURY, Conn., Sept. 18 -- Union Carbide Corporation (UCC) today
reported that third quarter earnings could be down by as much as 35 percent
below the $0.85 reported in the second quarter. The consensus of current
market expectations anticipates a 25 percent decline from the second quarter.
The company said that prices and margins for its basic chemicals had
continued to deteriorate in the quarter as a result of market weakness,
particularly in Asia, reaching trough levels for some major product lines.
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