Union Carbide Suffers a $495-Million Loss
Union Carbide reported a $495-million net loss in the fourth quarter of 1986, due largely to special charges stemming from its restructuring.
Union Carbide said its fourth-quarter net loss compared to a loss of $210 million in the fourth quarter of 1985. Sales from continuing operations were virtually flat at about $1.6 billion.
Union Carbide said its fourth-quarter loss included a one-time after-tax charge of $473 million from its repurchase of long-term debt at a premium as part of its recapitalization program.
The loss also reflected an after-tax loss of $12 million from discontinued operations and a $24-million negative adjustment stemming from tax revisions on the sales of the company’s consumer businesses.
In the fourth quarter of 1985, Union Carbide had a net charge of $242 million stemming from the restructuring program and other one-time special charges.
The company undertook the restructuring to fend off a 1985 takeover bid by GAF Corp., and to reduce debt and improve its cash flow after thwarting the bid.
For the full year, Union Carbide posted net income of $496 million, compared to a net loss of $581 million in 1985.
Revenue fell to $6.3 billion from $6.4 billion in 1985.
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