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)
March 16, 1999
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 March 16, 1999
accompanying this report as Exhibit 99.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99. Press release, March 16, 1999.
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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: March 16, 1999
UNION CARBIDE CORPORATION
By /s/J. Macdonald
J. Macdonald
Assistant Secretary
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EXHIBIT INDEX
Exhibit
99. Press release, dated March 16, 1999.
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Exhibit 99
UNION CARBIDE
NEWS RELEASE
CONTACT: Sean S. Clancy
(203) 794-6976
UNION CARBIDE EXPECTS 1ST QUARTER EARNINGS
TO BE CLOSE TO HIGHEST ANALYST ESTIMATES
Danbury, Conn., March 16 -- In a speech today to a gathering of chemical
industry investors, Union Carbide Corporation Chairman William H. Joyce said
gains from the Specialties and Intermediates (S&I) business segment and
diminished losses from the Basic Chemicals & Polymers (BC&P) business segment
should bring the company's first quarter earnings from operations to within a
few cents of the highest published analyst estimate. (The highest current
First Call estimate is $0.47.)
"We expect stronger volume and improved mix in Specialties and
Intermediates to result in earnings gains from last quarter, excluding
specials," Dr. Joyce said.
Dr. Joyce informed the group that price increases in polyethylene and
glycol for antifreeze will be offset by price declines in polyester glycol and
increasing raw material costs, causing margins to decline. With internal
turnaround costs sharply reduced, the net effect should be an improvement in
BC&P earnings, but not sufficient for BC&P to come close to the break even
point.
Despite expectations of a continuing industry cyclical trough and
resulting low margins, additional cost improvements and increased volume this
year and next should enable Union Carbide to show a favorable earnings trend
in advance of the upturn in the industry cycle, Dr. Joyce said.
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1999
P3-01-004
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Looking beyond the current trough to the next peak, Dr. Joyce noted that
Carbide would benefit from additional cost-savings initiatives and its
investments in technologically advanced new capacity, including new joint
venture capacity, added between the 1995 peak and 2001. If BC&P margins
duplicate those of 1995, peak earnings should be more than double the record
$5.85/per diluted share reported of that year.
Not included in the above estimate, but as previously disclosed,
effective January 1, 1999, the corporation adopted a new accounting rule (SOP
98-5) requiring the write-off of certain previously capitalized start-up
costs. A one-time charge of approximately $17 million after tax ($0.13 per
diluted share), will be reported as the cumulative effect of a change in
accounting principle in the first quarter of 1999.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions
Of the Private Securities Litigation Act of 1995
Those statements that do not reflect historical information include, but
are not limited to, statements regarding anticipated earnings, product prices,
volumes, mix and raw material costs are forward looking statements.
Naturally, results can always differ materially from those that are
anticipated. 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 availability and
costs; changes in industry production capacities and operating rates; currency
exchange rates; interest rates; global economic conditions; disruption in
transportation facilities; competitive technology positions; failure by the
corporation to achieve technology objectives, achieve cost reduction targets
or complete projects on schedule and on budget; and an inability to obtain new
customers or retain existing ones.
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