100790--2/21/2006--UNION_CARBIDE_CORP

related topics

{cost, regulation, environmental}

{financial, litigation, operation}

Rising and volatile purchased feedstock and energy costs increase UCC s operating costs and add variability to earnings. Actual or alleged violations of environmental laws or permit requirements could result in restrictions or prohibitions on plant operations, substantial civil or criminal sanctions, as well as the assessment of strict liability and/or joint and several liability. The Corporation is party to a number of claims and lawsuits arising out of the normal course of business with respect to commercial matters, including product liability, governmental regulation and other actions Local, state and federal governments have begun a regulatory process that could lead to new regulations impacting the security of chemical plant locations and the transportation of hazardous chemicals. Weather-related matters could impact the Corporation s results of operations.

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100790--2/21/2006--UNION_CARBIDE_CORP_/NEW/