UNION CARBIDE &lt;UK> SAYS LONG TERM DEBT RISES

  Union Carbide Corp said its 1986
  long term debt was 3.06 billion dlrs compared to 1.71 billion
  dlrs in 1985.
      The company released its audited 1986 results.
      The company also said its long term debt was reduced by
  about 1.5 billion dlrs from the third quarter to the end of the
  year by asset sales and equity offerings. Union Carbide sold
  its battery products, home and automobile products and
  agricultural products businesses in 1986. In the fourth
  quarter, it offered 30 mln shares of stock, raising about 650
  mln dlrs.
      The asset sales and equity offering were part of a
  recapitalization plan undertaken by the chemicals company last
  year.
      Audited net earnings in 1986 of 496 mln dlrs or 4.78 dlrs a
  share compared to a 1985 loss of 581 mln dlrs or 2.78 dlrs were
  unchanged from the company's preliminary earnings report made
  on Jan 28. The earnings results for the fourth quarter were
  also unchanged.
      Included in the 1986 numbers are a 564 mln dlr gain from
  sale of the different businesses, a 270 mln dlr pension credit
  and a charge of 473 mln dlrs from the purchase of long term
  debt at a premium under the recapitalization.
      In the audited results released today, the company broke
  down results by business segment.
      Operating profit in the fourth quarter for all of the
  company's operations on a consolidated basis, before corporate
  and interest expense and taxes, was 181 mln dlrs against a loss
  of three mln dlrs in the 1985 quarter.
      In the year, operating profit was 791 mln dlrs compared to
  a loss of 253 mln dlrs in 1985.
      In a statement, the company said it defeated a hostile
  takeover attempt, by GAF Corp &lt;GAF>, and recapitalized the
  company, adding, "While all this was going on, our continuing
  businesses performed very soundly, with substantial operating
  profit improvement over 1985."
      Carbon products posted operating profit of eight mln dlrs
  in the quarter, down from 29 mln dlrs, and 49 mln dlrs in the
  year against a loss of 146 mln dlrs.
      Chemicals and plastics had fourth quarter operating profit
  of 122 mln dlrs compared to a year-ago loss of 49 mln dlrs. In
  the year, chemicals and plastics earned 472 mln dlrs against
  losses of 142 mln dlrs in 1985.
      Operating income at industrial gases rose to 64 mln dlrs
  from 55 mln in the quarter and to 276 mln dlrs from 222 mln in
  the year.
      The company's specialties and services segment cut its
  losses in the quarter to 13 mln dlrs from 40 mln dlrs and in
  the year to three mln dlrs from 181 mln dlrs.
      Eliminations of business conducted between the company's
  industry segments contributed two mln dlrs to fourth quarter
  1985 profits but did not affect the 1986 quarter. The
  eliminations caused losses of three mln dlrs compared to six
  mln dlrs in the year.
      The 1985 operating results include a host of unusual
  writeoffs and depreciation charges totaling 134 mln dlrs in the
  quarter and 906 mln dlrs in the year.
      Capital expenditures rose to 524 mln dlrs in 1986 from 501
  mln dlrs.
      By segment, spending at carbon products fell to 42 mln dlrs
  from 57 mln dlrs and spending fell at specialties and services
  to 126 mln dlrs from 143 mln dlrs.
      At chemicals and plastics, expenditures rose to 147 mln
  dlrs from 133 mln and at industrial gases they rose to 209 mln
  dlrs from 168 mln dlrs.
      The company's cash and equivalents fell to 299 mln dlrs at
  year end from 430 mln dlrs at year end 1985, after a net
  decrease of 131 mln dlrs during 1986.
      Current assets at year-end fell to 2.41 billion dlrs from
  4.43 billion dlrs and current liabilities fell to 1.88 billion
  dlrs from 2.38 billion.
  

