Union Carbide’s Operating Net Falls 46% in Quarter

Union Carbide Corp. said its earnings from operations fell 46% in the second quarter, mostly because of higher interest expenses and the inclusion of a one-time gain in last year’s figures.

Union Carbide, based in Danbury, Conn., said its net income from operations fell to $55 million in the second quarter from $101 million in the same period last year.

Interest on its debt jumped from $69 million in last year’s quarter to $141 million this quarter as it borrowed money to buy back stock in its successful defense against an unwelcome takeover by GAF Corp.

The company’s second-quarter results a year ago were also boosted by a $27-million pretax gain from the sale of its welding and cutting systems.

Revenue for the second quarter totaled $1.74 billion, the same as a year ago.

The company said its operating profit from continuing operations totaled $228 million, a 27% increase over the $179 million of the 1985 second quarter.

For the six-months ended June 30, net income from operations fell to $95 million from $172 million. Revenue inched up to $3.46 billion from $3.45 billion in the same period in 1985.

The company said it planned to provide a final consolidated statement of income for the second quarter that will include gains from divestitures within three weeks.