Eastman Announces First-Quarter 2013 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., April 25, 2013 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding Solutia acquisition-related costs and charges in
both periods, of $1.62 per diluted share for first quarter 2013 versus $1.22 per
diluted share for first quarter 2012. Reported earnings were $1.57 per diluted
share in first quarter 2013 versus $1.13 per diluted share in first quarter
2012. For reconciliation to reported company and segment earnings, see Tables 3
and 4 in the accompanying first-quarter 2013 financial tables.
"Our portfolio of specialty businesses continued to deliver strong earnings in
the first quarter despite uncertain global economic conditions," said Jim
Rogers, Chairman and CEO. "For full year 2013, we remain on track to achieve a
fourth consecutive year of double-digit earnings growth while also generating
strong cash flow." See "Outlook" paragraphs for items excluded from earnings
comparisons.
(In millions, except per share amounts) 1Q2013 1Q2012
Sales revenue $2,307 $1,821
Pro forma combined sales revenue* $2,307 $2,319
Earnings per diluted share from $1.57 $1.13
continuing operations
Earnings per diluted share from $1.62 $1.22
continuing operations excluding Solutia
acquisition-related costs and charges**
Net cash provided by operating activities $5 $19
*See Table 2.
**For reconciliation to reported company and segment
earnings, see Tables 3 and 4.
Corporate 1Q 2013 versus 1Q 2012
Sales revenue for first quarter 2013 was $2.3 billion, a 27 percent increase
compared with first quarter 2012. First quarter 2013 included sales revenue from
the acquired Solutia businesses. Pro forma combined sales revenue declined 1
percent.
Operating earnings in first quarter 2013 were $393 million compared with $264
million in first quarter 2012. Excluding Solutia acquisition-related costs and
charges in both periods, operating earnings were $403 million in first quarter
2013 and $273 million in first quarter 2012. First quarter 2013 included
operating earnings from the acquired Solutia businesses. Pro forma combined
operating earnings, excluding Solutia acquisition-related costs and charges,
were $403 million in first quarter 2013 compared with $363 million in first
quarter 2012. Pro forma combined operating earnings increased primarily due to
lower raw material and energy costs partially offset by lower selling prices.
Operating earnings and pro forma combined operating earnings included the
"Other" operating losses detailed in Table 3.
Segment Results 1Q 2013 versus 1Q 2012
Additives & Functional Products - First quarter 2013 included sales revenue and
operating earnings from the acquired Solutia rubber additives product lines. Pro
forma combined sales revenue increased primarily due to higher sales volume of
solvents product lines attributed to strengthened coatings demand in the U.S.
building and construction market. First-quarter 2013 sales revenue included
revenue from sales of certain products primarily sold into the tires market
which were formerly reported in the Adhesives & Plasticizers segment. Pro forma
combined operating earnings increased to $98 million in first quarter 2013
compared with $94 million in first quarter 2012. The increase was primarily due
to lower raw material and energy costs, particularly for propane, and higher
sales volume more than offsetting lower selling prices. Also impacting first
quarter 2013 operating earnings was lower capacity utilization of rubber
additives manufacturing facilities compared to higher capacity utilization in
first quarter 2012 to build inventory.
Adhesives & Plasticizers - Sales revenue declined primarily due to lower sales
volume attributed to weakened demand for adhesives resins sold into consumables
markets, particularly packaging. Substitution of phthalate plasticizers with
non-phthalate plasticizers continued during the quarter. First-quarter 2012
sales revenue included revenue from sales of certain products primarily sold
into the tires market which now are reported in the Additives & Functional
Products segment. Operating earnings declined to $49 million in first quarter
2013 compared with $66 million in first quarter 2012 primarily due to lower
sales volume in adhesives resins product lines and resulting lower capacity
utilization.
Advanced Materials - First quarter 2013 included sales revenue and operating
earnings from the acquired Solutia interlayers and performance films product
lines. Pro forma combined sales revenue increased primarily due to higher sales
volume of interlayers products, particularly in Asia, attributed to strengthened
demand in the transportation market, and higher sales volume for Eastman
Tritan(TM) copolyester. Excluding first-quarter 2012 restructuring charges, pro
forma combined operating earnings increased to $65 million in first quarter
2013 compared with $61 million in first quarter 2012 primarily due to slightly
higher sales volume and increased sales of higher-margin products, including
interlayers with acoustic properties, Eastman Tritan(TM) copolyester, and V-
Kool(®) brand window films.
Fibers - Sales revenue increased due to higher selling prices in response to
higher raw material and energy costs, particularly for wood pulp, and higher
sales volume due to customer buying patterns for acetate tow products. Operating
earnings increased to $114 million in first quarter 2013 compared with $101
million in first quarter 2012 due to higher selling prices more than offsetting
higher raw material and energy costs.
Specialty Fluids & Intermediates - First quarter 2013 included sales revenue and
operating earnings from the acquired Solutia specialty fluids product lines. Pro
forma combined sales revenue declined primarily due to lower sales volume
resulting from increased internal use of olefins in the manufacture of higher-
value downstream derivatives. The decline was also due to lower selling prices
primarily for ethylene products due to lower raw material and energy costs,
particularly for propane. Pro forma combined operating earnings increased to $95
million in first quarter 2013 compared with $73 million in first quarter 2012.
The increase was primarily due to lower raw material and energy costs more than
offsetting lower selling prices.
Cash Flow
Eastman generated $5 million in cash from operating activities during first
quarter 2013. Working capital increased by $235 million during first quarter
2013 primarily due to increased receivables resulting from higher sales revenue.
The company contributed $11 million to the U.S. defined benefit pension plans
during the quarter, and expects to contribute approximately $120 million in full
year 2013. The fourth-quarter 2012 dividend of $45 million ($.30 per share) was
paid in December 2012 rather than January 2013. Share repurchases totaled $32
million during first quarter 2013.
Outlook
Commenting on the outlook for full year 2013, Rogers said: "We expect our
leadership positions in key end-markets, the diversity of the end-markets we
serve, and our broad geographic footprint to continue to position us well for
strong earnings growth. However, global economic uncertainty continues with
particular weakness in Europe, and raw material and energy costs remain
volatile. Taking all of these factors into consideration, we continue to expect
2013 earnings per share to be between $6.30 and $6.40." Solutia integration
costs, any asset impairments and restructuring charges, and mark-to-market
pension and OPEB gains or losses are excluded from the earnings per share
projection.
The earnings for 2012, 2011, 2010, and 2009 referenced in the second paragraph
of this release are non-GAAP and exclude Solutia acquisition-related costs,
asset impairments and restructuring charges and gains, mark-to-market pension
and OPEB gains and losses, and early debt extinguishment costs. Reconciliations
to 2012, 2011, 2010, and 2009 GAAP earnings and other associated disclosures,
including descriptions of the excluded items, are available in the "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
section of the company's Annual Report on Form 10-K for 2012 and 2011.
Forward-Looking Statements: This news release includes forward-looking
statements concerning current expectations for future economic, business, and
competitive conditions, financial impact and related costs and charges of the
Solutia acquisition, raw material and energy costs, pension and OPEB gains and
losses, defined benefit pension plan contributions, and earnings and cash flow
for full year 2013. 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-K
filed for 2012 available, and the Form 10-Q to be filed for first quarter 2013
and to be available, on the SEC website at www.sec.gov and the Eastman Chemical
website at www.eastman.com in the Investors, SEC filings section.
Eastman will host a conference call with industry analysts on April 26, 2013 at
8:00 a.m. Eastern Time. To listen to the live webcast of the conference call and
view the accompanying slides, go to www.investors.eastman.com, Presentations. To
listen via telephone, the dial-in number is (913) 312-1514, passcode number
9292143. A web and telephone replay will be available continuously from 11:00
a.m. Eastern Time, April 26, to 11:00 a.m. Eastern Time, May 6, 2013, at (888)
203-1112 or (719) 457-0820, passcode 9292143.
Eastman is a global specialty chemical 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 2012 pro forma combined
revenues, giving effect to the Solutia acquisition, of approximately $9 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
423-224-0498 / tjkilgore(at)eastman.com
Investors: Greg Riddle
212-835-1620 / griddle(at)eastman.com
2013 Q1 Financial Tables:
http://hugin.info/150386/R/1696656/558874.pdf
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#1696656]
Unternehmensinformation / Kurzprofil:
Datum: 25.04.2013 - 22:36 Uhr
Sprache: Deutsch
News-ID 253228
Anzahl Zeichen: 13262
contact information:
Town:
Kingsport
Kategorie:
Business News
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