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Union Carbide beats Street
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January 25, 1999: 8:50 a.m. ET
Chemical maker's 4Q profit aided by lawsuit, but hurt by weak prices, Asia
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NEW YORK (CNNfn) - Thanks to the proceeds of a lawsuit, Union Carbide exceeded analysts' fourth-quarter earnings forecast by 31 cents a diluted share, despite a decline in sales.
The chemical maker Monday reported fourth- quarter net income of $67 million, or 49 cents per diluted share, compared with $147 million, or $1.04 a share, before the effect of an accounting change, in the same period a year ago.
Analysts polled by research firm First Call expected the company to report a profit of 18 cents a share.
The company said fourth-quarter earnings benefited from an after-tax net gain of $43 million, or 31 cents a diluted common share, from the proceeds of a litigation settlement in connection with the company's Unipol systems business.
Sales for the quarter totaled $1.289 billion, down from $1.539 billion in the year-ago period.
The fourth-quarter results were hurt by excessive costs from implementation of new information technology and in "maintenance turnaround," Union Carbide said.
The results also reflect continued market weakness, particularly in Asia, as well as weak prices of some basic chemicals and the fact that several businesses experienced normal seasonal declines in the fourth quarter.
Chairman and CEO William H. Joyce said he expects weak chemical markets, especially in Asia, to affect earnings through much of 1999 and perhaps longer.
Year-end results
For the full year, Union Carbide also beat the Street, posting net income of $403 million, or $2.91 per diluted common share, compared with $659 million, or $4.53 per shar, a year earlier, before the effect of an accounting change.
First Call analysts expected the company to post a full-year profit of $2.50 a share.
Net sales for the year fell to $5.659 billion, down from $6.502 billion in the prior year.
Shares of Union Carbide closed down 9/16 at 42-3/4 Friday. 
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Union Carbide
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