The company said gains from its specialty chemicals business offset losses from its basic chemicals and polymers segment.
"We expect stronger volume and improved mix in specialties and intermediates to result in earnings gains from last quarter, excluding specials," said Union Carbide's chairman William H. Joyce in a statement.
The consensus estimate of analysts surveyed by First Call is for earnings of 34 cents for the chemical company (UK).
Union Carbide shares rose 1 7/8 to 45 3/8 in recent trading. The company is a component of the Dow Jones Industrial Average.
During a speech to a gathering of chemical industry investors, Joyce said price declines in polyester glycol and rising raw material costs will offset price hikes for polyethylene and glycol for antifreeze, causing margins to decline.
Although the basic chemicals and polymers unit should show an earnings improvement, it will not come come close to the break-even point, Joyce added.
Written By Lisa J Ulmer, CBS MarketWatch