|
Carbide beats 4Q estimate
|
 |
January 31, 2000: 7:31 a.m. ET
But chemical producer says volatile pricing for raw materials threatens 1Q
|
NEW YORK (CNNfn) - Union Carbide Corp. announced much better-than-expected fourth quarter results Monday, though the company warned that the current first quarter will be more difficult.
The Danbury, Conn., chemical producer reported net income of $94 million, or 68 cents a diluted share. Analysts surveyed by First Call had been looking for 46 cents a share in the period. In the year-earlier period, the company had net income of $67 million, or 49 cents a share, but that included a $71 million pretax gain from litigation that added 31 cents a share to the results.
Revenue for the quarter was up 20 percent to $1.6 billion.
Union Carbide (UK: Research, Estimates) said improved pricing in its basic chemicals and polymers businesses as well as stronger contributions from joint ventures helped results in the quarter.
But it warned that while it expects to make more money in 2000 than it did in 1999, it believes first-quarter results will be below the fourth-quarter profit. Analysts surveyed by First Call have been looking for 52 cents a share in earnings in the first quarter.
"Recent volatility in raw material prices, however, makes first quarter forecasting difficult," said William Joyce, Carbide's chairman and chief executive.
For the year, the company had earnings of $311 million, or $2.27 a diluted share, before an after-tax charge of 14 cents a share for a change in accounting practices. The $2.27 a share figure includes a third-quarter litigation gain of 21 cents a share. Net income was $291 million, or $2.13 a share, for 1999, including the accounting charge. In 1998, the company had net income of $403 million, or $2.91 a share, including the 31-cent litigation gain in the fourth quarter of that year.
Annual revenue rose to $5.87 billion, compared to $5.66 billion in 1998.
Shares of Union Carbide fell 1-11/16 to 54-5/16 in trading Friday. 
|
|
|
|
|
|
Union Carbide Corp.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
