|
Carbide misses estimates
|
 |
October 25, 1999: 7:57 a.m. ET
Higher raw material prices contribute to disappointment; prior periods restated
|
NEW YORK (CNNfn) - Chemical giant Union Carbide Corp. missed Wall Street's third-quarter earnings expectations Monday by a penny a share.
Excluding a 21 cent per share gain from a litigation settlement, Union Carbide, posted earnings of 36 cents per diluted share. That compared to 55 cents per share in the third quarter of 1998, which included an extraordinary gain of 25 cents.
Analysts polled by First Call Corp. expected the company to post earnings of 37 cents per share in the latest quarter.
Including extraordinary items, Union Carbide reported net income of $77 million, or 57 cents a diluted share, up from $76 million, or 55 cents, in last year's third quarter. Third-quarter sales totaled $1.50 billion, up from $1.35 billion in the year-earlier period.
The Danbury, Conn.-based company, which is being acquired by Dow Chemical Inc. (DOW), said higher prices for raw materials offset higher selling prices. It also said that sales volume remained high.
The company also upwardly restated net earnings for the first and second quarters of 1999 and the fourth quarter of 1998. In 1999, the first-quarter results were raised by $6 million, or 4 cents per share, and the second quarter boosted by $7 million, or 5 cents per share. Fourth quarter of 1998 earnings were revised up by $2 million, or 1 cent per diluted share, with the adjustment included in the 1999 third quarter.
Net income for the first nine months of the year was $197 million, or $1.45 per diluted share, down from $336 million, or $2.41 million per share, a year earlier. Sales slipped to $4.32 billion from $4.37 billion for the first nine months of 1998.
Shares of Union Carbide (UK) closed up Friday 7/8 to 59-7/8. 
|
|
|
|
|
|
Union Carbide
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
