Fri, Oct 25, 11:46 AM (146 days ago)
Union Carbide Corporation (UCC) reported a challenging third quarter for 2024, with net sales of $1,061 million, down from $1,138 million in Q3 2023. For the nine months ended September 30, 2024, total net sales decreased 4% to $3,253 million, primarily due to a 10% decline in average selling prices driven by lower raw material costs. Despite a 6% increase in volume, the cost of sales rose 3% to $3,000 million, resulting in a gross margin squeeze, as cost of sales exceeded net sales in Q3. Net income attributable to UCC was a loss of $26 million for Q3, contrasting with a profit of $86 million in the same quarter last year. Year-to-date, net income was $204 million, down from $298 million. Increased interest income ($104 million) and reduced interest expenses ($7 million) helped mitigate losses. Cash flow from operations was $489 million, down from $716 million, impacted by higher capital expenditures of $262 million. UCC continues to navigate uncertainties, including ongoing restructuring efforts and environmental liabilities, while maintaining compliance with debt covenants. The company's strategic focus remains on enhancing long-term competitiveness amid fluctuating market conditions.