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Carbide sees weak 4Q
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December 8, 1998: 9:15 a.m. ET
Chemical maker blames Asia, plant closing for lower-than-expected net
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NEW YORK (CNNfn) - Union Carbide Corp. said Tuesday its fourth-quarter earnings will be lower than previously anticipated, due in large part to weak chemical markets in Asia and delays in restarting a Louisiana plant.
The Danbury, Conn.-based company said it expects to meet the current analysts' earnings projection of 31 cents a diluted share for the quarter. A year ago, Union Carbide (UK) earned $1.04 a share.
The economic slowdown in Asia continues to have a negative effect on the company's operations, Vice President and Chief Financial Officer John K. Wulff said. Weak sales in the region had a similar impact in the third quarter, when earnings fell to 55 cents a share from $1.18 in the 1997 period.
In remarks prepared for a conference of chemical security analysts in New York, Wulff also blamed delays in reopening a Taft, La., plant after a shutdown to expand capacity and perform routine maintenance. And he said sales lost in November and December due to integration of some work processes were having a greater-than-expected impact on the current quarter's results.
"Overall, the transition is progressing well," Wulff said. "The nearly completed move to integrated systems should deliver major benefits to the company and our customers beginning next year."
Wulff said completion of some current projects and a cost reduction initiative should allow earnings to begin recovering even before the chemical business starts to rebound. He said the company's 1998 capital spending will total $800 million, with $650 million of that for expansion and renewal projects that will help Union Carbide when the industry peaks again.
Union Carbide stock ended New York Stock Exchange trading Monday at 44, up 13/16. 
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Union Carbide
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