UNION CARBIDE <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 <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.