Fri, Apr 25, 11:39 AM (17 days ago)
**Union Carbide Corporation (UCC, Ticker: UCC) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total net sales decreased by 11% to $978 million (Q1 2024: $1,098 million). Net sales to related companies (primarily TDCC) also decreased by 11% to $948 million. - **Profit Margins:** Gross margin turned negative, with cost of sales at 108.8% of net sales (Q1 2024: 84.8%). This resulted in a net loss of $82 million (Q1 2024: net income of $129 million). - **Cash Flow:** Operating cash flow was $38 million (Q1 2024: $118 million). Capital expenditures were $68 million (Q1 2024: $76 million). **Earnings Changes & Quarterly Performance:** - **Earnings:** Net loss of $82 million due to lower prices, decreased sales volume, higher feedstock and energy costs, and restructuring charges. - **Trends:** Decreased sales volume and prices, increased costs, and restructuring activities impacted performance. **Uncertainties & Future Operations:** - **Macroeconomic Weakness:** Ongoing macroeconomic weakness and planned maintenance turnaround activities affected sales volume and costs. - **Geopolitical Risks:** Global conflicts, sanctions, and trade policies pose risks to supply chain operations and sales volume. - **Restructuring:** UCC initiated cost reduction initiatives, expecting additional costs and benefits in the future. - **Pension Plans:** UCC is terminating certain pension plans, expecting settlement charges dependent on various factors. - **Asbestos-Related Matters:** UCC continues to face asbestos-related lawsuits, with no material developments in Q1 2025. **Future Impact:** - **Restructuring:** Expected to reinforce long-term competitiveness but will incur additional costs. - **Pension Plans:** Settlement charges will depend on interest rates, plan asset returns, and participant distribution elections. - **Geopolitical Risks:** Potential negative impact on sales volume, supply chain operations, and financial condition. - **Economic Conditions:** Adverse economic conditions may reduce demand and impact results of operations.