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Union Carbide warns on 4Q
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January 18, 2001: 6:01 p.m. ET
Loss will top forecasts due to weak prices, high cost of energy, raw materials
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NEW YORK (CNNfn) - Chemical manufacturer Union Carbide Corp. warned late Thursday that its fourth quarter loss would be far larger than anticipated.
The company said the loss would come to 70 cents a share, including a non-recurring charge of 17 cents related to UOP LLC, the company's chemical partnership with Honeywell International (HON: Research, Estimates). Analysts surveyed by earnings tracker First Call were looking for only 20 cents a share in losses during the period.
 The company also said full year earnings should come to $1.20 a share, down from the First Call forecast of $1.67 a share.
Danbury, Conn.-based Union Carbide blamed high raw material and energy costs, which it said rose to unprecedented levels by the end of the quarter, while average selling prices were lower than in the prior quarter. The drop in prices led to lower revenue due to flat sales volumes. The company said its North American-based basic chemicals and polymers businesses were particularly hard hit. It said it would release its earnings report Jan. 29.
Union Carbide also warned just before the release of its third-quarter results that it would not meet forecasts for that period. It cited high raw material and energy costs that time as well.
Shares of Union Carbide (UK: Research, Estimates) gained 25 cents to $47.75 a share in regular-hours trading Thursday ahead of the announcement. 
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