Eastman Investor Day Highlights Consistent, Superior Earnings Growth
(Thomson Reuters ONE) -
Expects EPS of ~$6.25 in 2013, and ~$8 in 2015
Expects to generate more than $2 billion of free cash 2012 - 2015
KINGSPORT, Tenn. - Dec. 12, 2012 - At its 2012 Investor Day, Eastman Chemical
Company (NYSE: EMN) chairman and CEO, Jim Rogers, and senior executives
discussed the company's strategy for delivering consistent, superior value.
"We have taken strategic actions over several years that have significantly
improved our portfolio of global specialty chemicals. Our results demonstrate
the strength and diversity of our businesses as we continue to develop
innovative products in attractive markets," said Rogers. "We have sound
financial objectives and our team remains confident in the additional value our
recently completed Solutia acquisition will create for Eastman stockholders.
Successfully executing our strategy has enabled us to effectively leverage
Eastman's world-class technology platforms and we expect to continue this
momentum as we move into 2013 and beyond."
The company forecasts earnings per share of approximately $6.25 in 2013 and of
approximately $8 in 2015, excluding any acquisition-related costs and charges,
asset impairments and restructuring costs, mark-to-market pension and OPEB
adjustments, or similar items. This forecast assumes global economic growth from
2013 through 2015 of approximately 3 percent, with growth of approximately 8
percent in China, approximately 2.5 percent in the U.S., and approximately 1
percent in Europe.
Financial outlook: A position of strength
Curt Espeland, senior vice president and chief financial officer, said that
Eastman's financial position is one of strength, and that the company expects to
generate more than $2 billion of free cash flow (cash from operations less
capital expenditures and dividends) between 2012 and 2015. He explained that the
company has an attractive debt maturity profile and solid sources of liquidity,
which will provide flexibility for Eastman moving forward. He also indicated
that the company expects to significantly repay its $1.2 billion Solutia
acquisition term loan by the end of 2013.
Espeland affirmed that the Solutia integration remains on track and the company
has received positive feedback on the transition from customers, employees, and
suppliers. He stated that the company expects to achieve its projected
synergies, including more than $100 million of cost synergies. In addition, tax
synergies include approximately $1.3 billion of NOLs (of which approximately
half are expected to be used in 2012 - 2014) and $150 million of foreign tax
credits. Espeland also reviewed expected revenue synergies, including
optimization of operational efficiencies and accelerated new product
development.
Additives & Functional Products: Stable, high-margin businesses with
opportunities to accelerate earnings growth
Mark Costa, executive vice president, described the company's growth strategy
for the Additives & Functional Products segment, which manufactures chemicals
additives for coatings and rubber. Costa explained that this business is poised
for growth through its leadership positions in attractive end-markets such as
transportation and building and construction, and through its innovative
technology platforms. Costa said that the segment also expects to benefit from
current efforts to improve its cost position, which includes implementation of
new improvements for its Crystex® insoluble sulfur technology.
According to Costa, growth of products sold in tires and coatings markets is
expected to drive earnings improvement in Additives & Functional Products, and
the company projects annual revenue growth of 5 percent to 7 percent with
operating margins between 22 and 25 percent through 2015.
Advanced Materials: High growth business well positioned to accelerate earnings
growth
Costa also discussed the strategy for the Advanced Materials segment, which
consists of the company's specialty plastics, advanced interlayers, and
performance films product lines. Like the Additives & Functional Products
segment, Advanced Materials expects to grow by strengthening its leading
positions in attractive end-markets, such as transportation and building and
construction, and by continuing to improve its product mix through innovation.
Costa added that the segment's premium products, with a combination of higher
unit margins, earnings stability, and overall pricing power, are projected to
have a 13 percent compound annual sales revenue growth rate. The company also
plans to improve the segment's cost position by leveraging recent asset
investments in both copolyesters and cellulosic plastics.
Annual sales revenue for this segment is expected to grow approximately 8
percent with operating margins increasing to between 13 percent and 15 percent
over the next three years.
Adhesives & Plasticizers: Expected to deliver continued earnings growth
Executive Vice President Ron Lindsay highlighted plans for growth in key areas
in the Adhesives & Plasticizers segment. In the adhesives resins product lines,
Lindsay discussed Eastman's plans to grow in key areas such as hygiene adhesives
and case and carton packaging adhesives markets. Eastman's hydrogenated
hydrocarbon resins provide optimized performance, allowing customers to grow
with the changing demands of hot-melt adhesives and hygiene products such as
diapers. Lindsay pointed to Eastman's capacity expansions as a demonstration of
its commitment to growing with the market, including its recently announced
joint venture with Sinopec Yangzi Petrochemical Company Limited to build a
hydrogenated hydrocarbon resin manufacturing facility in China. This world scale
facility is expected to be operational by the end of 2014.
Lindsay also discussed the company's plans to leverage its strong technology
platforms and leadership in non-phthalates plasticizers to target key growth
markets, particularly in North America and Europe. Lindsay pointed to continued
application development and the company's recent acquisitions of Genovique
Specialties, Sterling Chemicals, and Scandiflex as enabling growth.
The Adhesives & Plasticizers segment expects annual revenue growth of
approximately 8 percent while maintaining operating margins of 17 percent to 20
percent.
Specialty Fluids & Intermediates: Expected to provide targeted growth and solid
base of earnings
Lindsay also discussed the company's growth strategy for the Specialty Fluids &
Intermediates segment, which consists of the company's specialty fluids product
lines and its oxo and acetyl chemical intermediates product lines. Lindsay said
that Eastman intends to extend its leading market position in Therminol(®) heat
transfer fluids and to optimize its strong chemical intermediates cost and
market position to provide cost and reliability advantages for customers. The
company also plans to deliver targeted growth through capacity expansions and to
leverage its integrated assets to enhance derivative margins.
Specialty Fluids & Intermediates expects to continue delivering solid results,
with annual revenue growth expected to be approximately 4 percent while
maintaining operating margins of between 13 percent and 16 percent through 2015.
Fibers: A global business on track for ninth year of operating earnings growth
Lindsay said that the Fibers segment is a global business with 79 percent of
sales revenue generated outside of North America. The previously announced
acetate tow expansion, a joint venture with China National Tobacco Corporation,
is on track to be operational by mid-2013. He stated that Fibers is expected to
continue to provide a solid base of earnings with growth from the China joint
venture and is on track in 2012 for its ninth consecutive year of operating
earnings growth. The company expects earnings for this segment to increase
annually through 2015.
Technology: A growing platform that addresses market needs
Dr. Greg Nelson, senior vice president and chief technology officer, reviewed
the company's research and development efforts and how they are aligned with the
company's growth strategy and outlined progress being made on new technology
platforms. Nelson described several technology platforms that are expected to
generate value and long-term growth for Eastman, including the company's new
additives for tires and process technology improvements in its Crystex(®),
Therminol(®) and Saflex(®) products. Interest in Eastman's microfibers
technology is gaining momentum and the company expects the first commercially
available product with nonwoven microfibers to be available in the first quarter
of 2013. Nelson also discussed how the recent acquisition of Solutia has
significantly increased the company's global innovation footprint, thereby
accelerating plans to grow in China.
A webcast replay of the Investor Day presentations and the accompanying slides
will be available at www.investors.eastman.com, Events & Presentations.
Forward-Looking Statements: This news release includes forward-looking
statements concerning current strategy, plans, and expectations for Eastman and
its businesses and products; company earnings per share and segment revenues and
operating earnings; company financial position, cash from operations, debt,
liquidity, and uses of available cash; integration of and synergies from the
acquired Solutia businesses; and revenues and earnings from new products and
technologies. Such expectations are based upon certain preliminary information,
internal estimates, and management assumptions, expectations, and plans, and are
subject to a number of risks and uncertainties inherent in projecting future
conditions, events, and results. Actual results could differ materially from
expectations expressed in the forward-looking statements if one or more of the
underlying assumptions or expectations prove to be inaccurate or are unrealized.
Important factors that could cause actual results to differ materially from such
expectations are and will be detailed in the company's filings with the
Securities and Exchange Commission, including the Form 10-Q filed for third
quarter 2012 available on the Eastman web site at www.eastman.com in the
Investors, SEC filings section.
Eastman is a global specialty chemicals company that produces a broad range of
products found in items people use every day. With a portfolio of specialty
businesses, Eastman works with customers to deliver innovative products and
solutions while maintaining a commitment to safety and sustainability. Its
market-driven approaches take advantage of world-class technology platforms and
leading positions in attractive end-markets such as transportation, building and
construction, and consumables. Eastman focuses on creating consistent, superior
value for all stakeholders. As a globally diverse company, Eastman serves
customers in approximately 100 countries and had 2011 pro forma combined
revenues, giving effect to the Solutia acquisition, of approximately $9.3
billion. The company is headquartered in Kingsport, Tennessee, USA and employs
approximately 13,500 people around the world. For more information, visit
www.eastman.com.
Contacts:
Media: Tracy Kilgore Broadwater
423-224-0498 / tkbroadwater(at)eastman.com
Investors: Greg Riddle
212-835-1620 / griddle(at)eastman.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Eastman Chemical Company via Thomson Reuters ONE
[HUG#1664557]
Unternehmensinformation / Kurzprofil:
Datum: 12.12.2012 - 22:03 Uhr
Sprache: Deutsch
News-ID 212350
Anzahl Zeichen: 13105
contact information:
Town:
Kingsport
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 147 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Eastman Investor Day Highlights Consistent, Superior Earnings Growth"
steht unter der journalistisch-redaktionellen Verantwortung von
Eastman Chemical Company (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
