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[BCP Letterhead] Exhibit 99
FOR IMMEDIATE RELEASE Press Contact
James P. McKinley 212 573-4178
BORDEN CHEMICALS AND PLASTICS DECLARES CASH DISTRIBUTION OF 65 CENTS PER UNIT.
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REPORTS 68 CENTS PER UNIT NET INCOME IN SECOND QUARTER
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COLUMBUS, OHIO, July 19, 1994 -- Borden Chemicals and Plastics Limited
Partnership (NYSE: BCU) today announced a cash distribution of 65 cents per
common unit for the second quarter of 1994. This compares with a cash
distribution of 18 cents per unit for the second quarter of 1993 and 21 cents
for the first quarter of 1994.
The distribution was declared at a meeting of the Board of Directors of
BCP Management, Inc. (BCPM), the General Partner of the Partnership, and is
payable August 8 to unitholders of record July 29.
The Partnership had net income of $25.3 million on revenues of $149.7
million for the three-month period ended June 24, 1994, versus a net loss of
$4.9 million on revenues of $106.0 million in the second quarter of 1993.
After the General Partner's interest, net income per unit was 68 cents,
compared with a net loss of 13 cents per unit in the same period of 1993.
The cash distribution declared each quarter is based on available cash
generated in the quarter and differs from net income primarily because of
depreciation, which is a non-cash expense, and changes in working capital
requirements for the quarter.
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277 PARK AVENUE, NEW YORK, NEW YORK 10172
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"Our second quarter results reflect substantially higher selling prices
and demand for polyvinyl chloride resins and methanol as well as lower natural
gas costs, compared with the 1994 first quarter and the year-ago period," said
Joseph M. Saggese, chairman of the board, president and chief executive officer
of BCPM.
"These improvements more than offset higher raw material ethylene and
chlorine costs," noted Mr. Saggese.
"Profit margins in nitrogen products (primarily ammonia and urea) also
improved due to higher selling prices, compared with the fist quarter and
year-ago periods," added Mr. Saggese.
BCPM also announced that it has signed a letter of intent with
Dallas-based Occidental Chemical Corporation to purchase Occidental's Addis,
Louisiana, PVC manufacturing facility. A conclusion of this acquisition is
contingent on negotiation of a definitive agreement, FTC approval and other
conditions.
Borden Chemicals and Plastics Limited Partnership is a publicly traded
partnership formed to acquire and operate the polyvinyl chloride resins and
basic chemicals businesses of Borden, Inc. The Partnership has manufacturing
facilities at Geismar, Louisiana, and Illiopolis, Illinois. BCP Management
holds a 2 percent interest and serves as General Pertner. Publicly traded
units account for 98 percent ownership.
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BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
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(In thousands, except per share data)
Three Months Six Months
Ended Ended
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6/24/94 6/25/93 6/24/94 6/25/93
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Revenues $149,671 $105,971 $268,652 $196,575
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Net Income (Loss) $ 25,264 $ (4,855) $ 28,892 $ (4,589)
Less: 1% General
Partner Interest (253) 49 (289) 46
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Net Income (Loss)
Applicable to Limited
Partner's Interest $ 25,011 $ (4,806) $ 28,603 $ (4,543)
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Net Income (Loss)
Per Unit $ .68 $ (.13) $ .78 $ (.12)
Cash Distribution
Declared Per Unit $ .65 $ .18 $ .86 $ .48
Average Units 36,750 36,750 36,750 36,750
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