EXHIBIT 99
UNION CARBIDE CORPORATION
News Release
CONTACT: Sean S. Clancy
(203) 794-6976
UNION CARBIDE REPORTS SUBSTANTIALLY
HIGHER SECOND QUARTER EARNINGS
DANBURY, Conn., July 31 -- Union Carbide Corporation (UCC)
today reported higher second quarter 2000 earnings of $0.94 per
diluted share, compared to $0.46 per diluted share in the second
quarter of 1999 and $0.71 per diluted share in the first quarter
2000.
Net income for the quarter totaled $130 million, compared to
$63 million for last year's second quarter, which included a $9
million after-tax gain ($0.06/diluted share) from a litigation
settlement related to licensing, and $97 million in this year's
prior quarter. Second quarter 2000 income benefited from an $11
million after-tax gain ($0.08/diluted share) from the
demutualization of Metropolitan Life Insurance Company, a
provider of certain employee benefit programs for the company.
Sales in the second quarter totaled $1.674 billion, compared to
$1.418 billion for the second quarter of 1999 and $1.617 billion
in the first quarter of 2000.
"Contributors to improved second quarter earnings were the
continued strong performance of our equity companies, especially
EQUATE, as well as improved operating performance from our Basic
Chemicals and Polymers (BC&P) segment. This is an indication
that earnings performance has begun to benefit from capital
investments made for construction of the EQUATE facility and to
increase domestic ethylene capacity at our Taft (LA) plant. A
year ago, both facilities were incurring start-up problems and
hadn't begun to deliver the results we've
- MORE -
2000
P3-01-011
<PAGE>
Page 2
of 9
seen this quarter," said UCC Chairman and CEO William H. Joyce.
"Our Specialties and Intermediates (S&I) segment results
continued to be negatively impacted by rising costs of
feedstocks, other purchased materials, and energy and the impact
of the strong dollar on competitive pricing.
"Looking into the third quarter, we are not counting on any
help from lower raw material prices. We anticipate a decline in
selling prices of BC&P products and reduced equity company
income, both of which should be partially offset by improvement
in the S&I segment," Dr. Joyce continued.
The S&I segment reported an operating profit of $92 million
for the second quarter of 2000, compared to $188 million in the
same period a year ago and $82 million in this year's prior
quarter.
The BC&P segment reported an operating profit of $74 million
for the second quarter of 2000, compared to an operating loss of
$42 million in the 1999 second quarter and an operating profit of
$30 million in the first quarter of 2000.
Income from corporate investments carried at equity was $43
million for the second quarter of 2000, compared to a loss of $18
million in the second quarter of 1999 and income of $39 million
in this year's first quarter.
Pension plan investment gains added $0.10 to second quarter
2000 earnings per share, the same as in the first quarter of
2000, and are expected to similarly affect earnings for the
remainder of the year.
Net income for the first six months of 2000 was $227
million, or $1.65 per diluted share. This compares to $140
million, or $1.02 per diluted share before the cumulative effect
of change
- MORE -
<PAGE>
Page 3
of 9
in accounting principle, in the same period a year ago.
Worldwide net sales for the first six months of 2000 were $3.291
billion, compared to $2.820 billion for the first half of 1999.
Union Carbide is a worldwide chemicals company with advanced
process technologies and large-scale chemical production
facilities.
- Specialties & Intermediates -- Union Carbide is the leading
North American supplier of solvents and intermediates to the
paint and coatings industry; the leading licensor of several
technologies; and a leading supplier of specialty chemicals,
polymers and services used in the personal care products,
pharmaceuticals, automotive, wire and cable, oil and gas and
industrial lubricants industries.
- Basic Chemicals & Polymers -- Union Carbide is among the
largest manufacturers of polyethylene, the world's most widely
used plastic, and the technology leader in this industry; and a
large manufacturer of polypropylene, one of the world's fastest-
growing, large-volume plastics. UCC is also the world's largest
producer of ethylene oxide and its derivative ethylene glycol,
used for polyester fiber, resin and film, automotive antifreeze
and other products.
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. Forward-
looking statements include statements concerning anticipated
future events or performance, sales prices, cost improvements,
raw material costs, volume increases, and earnings expectations.
Naturally, such forward-looking statements are subject to risks
and uncertainties. In addition to all specific assumptions
cited, important factors that could cause actual results to
differ materially from those discussed in such forward-looking
statements 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.
- MORE -
<PAGE>
Page 4
of 9
<TABLE>
<CAPTION>
UNION CARBIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Quarter Ended
June 30, Mar. 31, June 30,
Millions of dollars, except per share amounts 2000 2000 1999
<S> <C> <C> <C>
NET SALES $1,674 $1,617 $1,418
Cost of sales, exclusive of depreciation
and amortization 1,354 1,314 1,105
Research and development 39 39 39
Selling, administrative and other expenses (a) 61 73 57
Depreciation and amortization 102 102 95
Partnership income (loss) 9 3 (4)
Other income - net 36 24 27
------ ------ ------
INCOME BEFORE INTEREST EXPENSE AND PROVISION
FOR INCOME TAXES 163 116 145
Interest expense 45 37 35
------ ------ ------
INCOME BEFORE PROVISION FOR INCOME TAXES 118 79 110
Provision for income taxes 29 20 28
------ ------ ------
INCOME OF CONSOLIDATED COMPANIES AND
PARTNERSHIPS 89 59 82
Minority interest 2 1 1
Income (loss) from corporate investments
carried at equity 43 39 (18)
------ ------ ------
NET INCOME $ 130 $ 97 $ 63
====== ====== ======
Earnings per common share
Basic - Net income $ 0.96 $ 0.72 $ 0.47
====== ====== ======
Based on the indicated number of shares 134,745,740 134,406,055 133,088,173
Diluted - Net income $ 0.94 $ 0.71 $ 0.46
====== ====== ======
Based on the indicated number of shares 137,919,070 137,563,934 136,453,663
(a) Selling $ 22 $ 23 $ 23
Administrative 22 22 16
Other expenses 17 28 18
------ ------ ------
Total $ 61 $ 73 $ 57
====== ====== ======
</TABLE>
- MORE -
<PAGE>
Page 5
of 9
<TABLE>
<CAPTION>
UNION CARBIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Six Months Ended
June 30,
Millions of dollars, except per share amounts 2000 1999
<S> <C> <C>
NET SALES $3,291 $2,820
Cost of sales, exclusive of depreciation
and amortization 2,668 2,137
Research and development 78 76
Selling, administrative and other expenses (a) 134 127
Depreciation and amortization 204 199
Partnership income 12 2
Other income - net 60 41
------ ------
INCOME BEFORE INTEREST EXPENSE AND PROVISION
FOR INCOME TAXES 279 324
Interest expense 82 66
------ ------
INCOME BEFORE PROVISION FOR INCOME TAXES 197 258
Provision for income taxes 49 66
------ ------
INCOME OF CONSOLIDATED COMPANIES AND
PARTNERSHIPS 148 192
Minority interest 3 2
Income (loss) from corporate investments
carried at equity 82 (50)
------ ------
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE 227 140
Cumulative effect of change in accounting principle - (20)
------ ------
NET INCOME $ 227 $ 120
====== ======
Earnings per common share
Basic - Income before cumulative effect of
change in accounting principle $ 1.68 $ 1.05
- Cumulative effect of change in accounting
principle - (0.15)
------ ------
- Net income $ 1.68 $ 0.90
====== ======
Based on the indicated number of shares 134,575,898 132,968,994
Diluted - Income before cumulative effect of
change in accounting principle $ 1.65 $ 1.02
- Cumulative effect of change in accounting
principle - (0.14)
------ ------
- Net income $ 1.65 $ 0.88
====== ======
Based on the indicated number of shares 137,741,502 136,082,504
(a) Selling $ 45 $ 46
Administrative 44 41
Other expenses 45 40
------ ------
Total $ 134 $ 127
====== ======
</TABLE>
- MORE -
<PAGE>
Page 6
of 9
<TABLE>
<CAPTION>
UNION CARBIDE CORPORATION AND SUBSIDIARIES
SEGMENT DATA
Quarter Ended
June 30, Mar. 31, June 30,
2000 2000 1999
Millions of dollars, except as indicated
<S> <C> <C> <C>
Specialties and Intermediates
Segment revenues $1,125 $1,108 $1,036
Depreciation and amortization 67 67 62
Partnership income (loss) 8 2 (2)
Operating profit 92 82 188
Income (loss) from corporate
investments carried at equity (2) 1 -
Unit variable margin (cents/pound) 18.6 19.0 22.7
Fixed cost per pound of products
sold (cents/pound) 13.3 12.9 13.0
Capital expenditures 47 69 93
Basic Chemicals & Polymers
Segment revenues $ 655 $ 608 $ 436
Depreciation and amortization 35 35 33
Partnership income (loss) 1 1 (2)
Operating profit (loss) 74 30 (42)
Income (loss) from corporate
investments carried at equity 45 38 (18)
Unit variable margin (cents/pound) 11.6 9.4 4.7
Fixed cost per pound of products
sold (cents/pound) 6.3 6.2 5.2
Capital expenditures 80 126 115
Other
Operating profit (loss) $ (3) $ 4 $ (1)
</TABLE>
- MORE -
<PAGE>
Page 7
of 9
<TABLE>
<CAPTION>
UNION CARBIDE CORPORATION AND SUBSIDIARIES
SEGMENT DATA
Six Months Ended
June 30, June 30,
2000 1999
Millions of dollars, except as indicated
<S> <C> <C>
Specialties and Intermediates
Segment revenues $2,233 $2,070
Depreciation and amortization 134 125
Partnership income (loss) 10 2
Operating profit 174 396
Income (loss) from corporate
investments carried at equity (1) 4
Unit variable margin (cents/pound) 18.8 24.3
Fixed cost per pound of products
sold (cents/pound) 13.1 13.5
Capital expenditures 116 162
Basic Chemicals & Polymers
Segment revenues $1,263 $ 857
Depreciation and amortization 70 74
Partnership income (loss) 2 -
Operating profit (loss) 104 (75)
Income (loss) from corporate
investments carried at equity 83 (54)
Unit variable margin (cents/pound) 10.5 5.2
Fixed cost per pound of products
sold (cents/pound) 6.2 5.2
Capital expenditures 206 219
Other
Operating profit (loss) $ 1 $ 3
</TABLE>
- MORE -
<PAGE>
Page 8
of 9
<TABLE>
<CAPTION>
Union Carbide Corporation
Data Sheet
2Q00 1Q00 2Q99 2Q/1Q 2Q/2Q
<S> <C> <C> <C> <C> <C> <C>
Union Carbide Corporation
Net Sales MM $ 1,674 1,617 1,418 3.5% 18.1%
Customer Volumes MM Lb. 4,128 4,198 4,198 (1.7%) (1.7%)
Average Selling Prices Cents/Lb. 40.6 38.5 33.8 5.5% 20.1%
Unit Variable Margin Cents/Lb. 15.5 14.6 14.6 6.2% 6.2%
Fixed Costs MM $ 418 423 397 (1.2%) 5.3%
S & I Segment
Segment Revenues * MM $ 1,125 1,108 1,036 1.5% 8.6%
Customer Volumes MM Lb. 2,266 2,288 2,303 (1.0%) (1.6%)
Average Selling Prices Cents/Lb. 49.7 48.4 45.0 2.7% 10.4%
Unit Variable Margin Cents/Lb. 18.6 19.0 22.7 (2.1%) (18.1%)
Operating Profit MM $ 92 82 188 12.2% (51.1%)
Increase in Raw Material,
Energy & Related
Manufacturing Variable Costs MM $ 30 190
B C & P Segment
Segment Revenues MM $ 655 608 436 7.7% 50.2%
Customer Sales Revenues MM $ 549 509 382 7.9% 43.7%
Customer Volumes MM Lb. 1,862 1,910 1,895 (2.5%) (1.7%)
Average Selling Prices Cents/Lb. 29.5 26.7 20.2 10.5% 46.0%
Unit Variable Margin Cents/Lb. 11.6 9.4 4.7 23.4% 146.8%
Operating Profit /(Loss) MM $ 74 30 (42) 146.7% 276.2%
Increase in Raw Material,
Energy & Related
Manufacturing Variable Costs MM $ 13 88
Change in Average Selling Prices
B C & P Chemicals Cents/Lb. Change 3.5 12.0
B C & P Plastics Cents/Lb. Change 3.4 10.2
Change in Customer Volumes
B C & P Chemicals % Change (4.0%) (17.4%)
B C & P Plastics % Change (3.1%) (0.5%)
Hydrocarbon By-products % Change 2.6% 27.0%
<FN>
* Segment Revenues equal Customer Revenues
</FN>
</TABLE>
-MORE-
Page 9
of 9
Union Carbide Corporation
Data Sheet
<TABLE>
<CAPTION>
1 H `00/
1 H `00 1 H `99 1 H `99
<S> <C> <C> <C> <C>
Union Carbide Corporation
Net Sales MM $ 3,291 2,820 16.7%
Customer Volumes MM Lb. 8,326 8,361 (0.4%)
Average Selling Prices Cents/Lb. 39.5 33.7 17.2%
Unit Variable Margin Cents/Lb. 15.0 15.4 (2.6%)
Fixed Costs MM $ 841 810 3.8%
S & I Segment
Segment Revenues * MM $ 2,233 2,070 7.9%
Customer Volumes MM Lb. 4,554 4,479 1.7%
Average Selling Prices Cents/Lb. 49.0 46.2 6.1%
Unit Variable Margin Cents/Lb. 18.8 24.3 (22.6%)
Operating Profit MM $ 174 396 (56.1%)
Increase in Raw Material,
Energy & Related
Manufacturing Variable Costs MM $ 396
B C & P Segment
Segment Revenues MM $ 1,263 857 47.4%
Customer Sales Revenues MM $ 1,058 750 41.1%
Customer Volumes MM Lb. 3,772 3,882 (2.8%)
Average Selling Prices Cents/Lb. 28.1 19.3 45.1%
Unit Variable Margin Cents/Lb. 10.5 5.2 101.9%
Operating Profit /(Loss) MM $ 104 (75) 238.7%
Increase in Raw Material,
Energy & Related
Manufacturing Variable Costs MM $ 200
Change in Average Selling Prices
B C & P Chemicals Cents/Lb. Change 10.0
B C & P Plastics Cents/Lb. Change 9.6
Change in Customer Volumes
B C & P Chemicals % Change (18.7%)
B C & P Plastics % Change 2.5%
Hydrocarbon By-products % Change 10.6%
<FN>
* Segment Revenues equal Customer Revenues
</FN>
</TABLE>
-END-
