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Union Carbide profit slips
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July 26, 1999: 7:06 a.m. ET
Chemical maker's 2Q misses Street forecast by a penny
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NEW YORK (CNNfn) -- Union Carbide's profits took a hit in the second quarter due largely to higher raw material costs and a decline in licensing income.
For the quarter ended June 30, 1999, the worldwide chemicals company reported net income of $56 million, or 41 cents a diluted share, well below the $118 million, or 85 cents a share, posted in the same period last year.
The second quarter results just missed Wall Street forecasts. The per-share consensus estimate among analysts was 42 cents, according to forecast-tracking firm First Call.
Net sales for the quarter fell to $1.42 billion from $1.46 billion a year ago.
On the positive side, the company said fixed income productivity and volume were excellent in the second quarter and earnings benefited from a licensing-related litigation settlement, which totaled $9 million after-tax, as well as reduced losses from corporate investments.
Year-to-date results
For the first half of the year, Union Carbide's results also showed a decline. Net income for the six-month period fell to $107 million, or 79 cents per diluted share, from $260 million, or $1.86 a share in the same period last year.
Sales for the first six months slid to $2.82 billion from $3.02 billion a year earlier.
Looking ahead, the company predicted some improvement for the third quarter based on current conditions.
"We expect strong demand through the quarter for all businesses and increased product selling prices in the Basic Chemicals & Polymers (BC&P) segment," UCC Chairman and CEO William H. Joyce said. "Raw material feedstock prices are expected to rise, but only slightly over second quarter levels."
Shares in Union Carbide (UK) closed down ¼ at 45-7/8 on Friday.
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Union Carbide
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