Eastman Announces Second-Quarter 2013 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., July 29, 2013 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding the items described in Tables 3 and 4, of $1.80
per diluted share for second quarter 2013 versus $1.40 per diluted share for
second quarter 2012. Reported earnings from continuing operations were $1.69 per
diluted share in second quarter 2013 and $1.26 per diluted share in second
quarter 2012. For detail of the excluded items and reconciliation to reported
company and segment earnings, see Tables 3 and 4.
"The great progress we've made over the past several years to improve
our portfolio, including the acquisition of Solutia, shows in the continuing
strength of our earnings," said Jim Rogers, Chairman and CEO. "Second-quarter
earnings were our best ever and position us for a fourth consecutive year of
double-digit earnings growth. We continue to expect double-digit earnings growth
through 2015 given our leading market positions, our end-market and geographic
diversity, and the growth initiatives we are pursuing throughout the company."
See "Outlook" paragraphs for items excluded from earnings comparisons.
(In millions, except 2Q2013 2Q2012
per share amounts)
Sales revenue $2,440 $1,853
Pro forma combined $2,440 $2,373
sales revenue*
Earnings per diluted $1.69 $1.26
share
from continuing
operations
Earnings per diluted $1.80 $1.40
share from continuing
operations excluding
items**
Net cash provided by $362 $316
operating activities
*See Table 2.
**For the excluded items and reconciliation to reported company and segment
earnings, see Tables 3 and 4.
Corporate 2Q 2013 versus 2Q 2012
Sales revenue for second quarter 2013 was $2.4 billion, a 32 percent increase
compared with second quarter 2012. Second quarter 2013 included sales revenue
from the acquired Solutia businesses. Pro forma combined sales revenue increased
3 percent due to higher sales volume across most segments.
Operating earnings in second quarter 2013 were $428 million compared with $317
million in second quarter 2012. Excluding the items described in Tables 3 and
4, operating earnings were $454 million in second quarter 2013 and $323 million
in second quarter 2012. Second quarter 2013 included operating earnings from the
acquired Solutia businesses. Pro forma combined operating earnings, excluding
the items described in Tables 3 and 4, were $454 million in second quarter 2013
compared with $403 million in second quarter 2012. Pro forma combined operating
earnings increased primarily due to higher sales volume across most segments and
higher capacity utilization which led to lower unit costs. Operating earnings
and pro forma combined operating earnings included the "Other" operating losses
detailed in Table 3.
Segment Results 2Q 2013 versus 2Q 2012
Additives & Functional Products - Second 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. Higher sales volume in solvents product lines was attributed to
strengthened coatings demand in the building and construction market. Second-
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 declined
to $105 million in second quarter 2013 compared with $107 million in second
quarter 2012.
Adhesives & Plasticizers - Sales revenue declined due to lower sales volume,
primarily in adhesives resins, and lower selling prices in both plasticizers and
adhesives resins. Lower sales volume in adhesives resins was primarily
attributed to weakened demand in certain end markets including tapes, labels,
and packaging, and customer destocking. This was partially offset by continued
substitution of phthalate plasticizers with non-phthalate plasticizers. Lower
selling prices for plasticizers were primarily attributed to competitive
pressures resulting from continued weakened demand in Asia and Europe. Lower
adhesives resins selling prices were primarily attributed to
additional competitive pressure as industry supply increased attributed to
improved availability of rosin resins and other key raw materials. Second-
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 $50 million in
second quarter 2013 compared with $72 million in second quarter 2012 primarily
due to both lower selling prices and lower sales volume.
Advanced Materials - Second quarter 2013 included sales revenue and operating
earnings from the acquired Solutia interlayers and performance films product
lines. Pro forma combined sales revenue increased due to higher sales volume for
Eastman Tritan(TM) copolyester, higher sales volume for interlayers products
attributed to strengthened demand in Asia and North America transportation
markets, and higher sales volume for performance films products. Pro forma
combined operating earnings increased to $81 million in second quarter 2013
compared with $63 million in second quarter 2012 primarily due to higher sales
volume and increased sales of higher-margin products, including Eastman
Tritan(TM) copolyester and V-Kool(®) brand window films, resulting in higher
capacity utilization which led to lower unit costs.
Fibers - Sales revenue increased due to customer buying patterns for acetate tow
products and higher selling prices in response to higher raw material and energy
costs, particularly for wood pulp. Operating earnings increased to $116 million
in second quarter 2013 compared with $96 million in second quarter 2012 due to
higher selling prices.
Specialty Fluids & Intermediates - Second quarter 2013 included sales revenue
and operating earnings from the acquired Solutia specialty fluids product lines.
Pro forma combined sales revenue increased due to higher sales volume of olefin-
based products primarily in the North America and Asia Pacific regions, and for
specialty fluids products due to timing of customer project completions. Pro
forma combined operating earnings increased to $118 million in second quarter
2013 compared with $97 million in second quarter 2012. The increase was
primarily due to higher sales volume.
Cash Flow
Eastman generated $362 million in cash from operating activities during
second quarter 2013, primarily due to strong net earnings. During second quarter
2013, the company reduced long-term borrowings by $100 million and repurchased
shares totaling $46 million.
Outlook
Commenting on the outlook for full year 2013, Rogers said: "We expect our
portfolio of specialty businesses to continue to deliver strong earnings despite
slow global economic growth, reflecting our leadership positions in key end-
markets, the diversity of the end-markets we serve, and our broad geographic
footprint. As a result, we are increasing our expectations for 2013 earnings per
share to between $6.40 and $6.50. We expect earnings in the second half of the
year will be slightly lower than first half due to normal seasonality of sales
volume." Solutia integration costs, asset impairments and restructuring charges,
and mark-to-market pension and OPEB gains or losses are excluded from the
earnings per share projections.
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 Reports on Form 10-K for 2012 and 2011.
Eastman will host a conference call with industry analysts on July 30 at 8:00
a.m. EDT. To listen to the live webcast of the conference call and view the
accompanying slides, go to www.investors.eastman.com, Events & Presentations.
To listen via telephone, the dial-in number is 913-312-1391, passcode number
4214451. A web replay, a replay in downloadable MP3 format, and the
accompanying slides will be available at www.investors.eastman.com, Events &
Presentations. A telephone replay will be available continuously from 11:00
a.m. EDT, July 30, to 11:00 a.m. EDT, August 9, at (888) 203-1112 or (719)
457-0820, passcode 4214451.
Forward-Looking Statements: This news release includes forward-looking
statements concerning current expectations for global economic conditions; sales
volume; benefits, costs and charges, and integration of the Solutia acquisition
and of the acquired Solutia businesses and of other growth initiatives; asset
impairments and restructuring charges and mark-to-market pension and OPEB gains
and losses; and company, segment, and acquired Solutia businesses earnings in
second half and full year 2013 and future years. 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 first quarter 2012 available, and
the Form 10-Q to be filed for second quarter 2012 and to be available, on the
Eastman web site at www.eastman.com in the Investors, SEC information section.
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 $9.1
billion. The company is headquartered in Kingsport, Tenn., and employs
approximately 14,000 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
2Q 2013 Financial Tables:
http://hugin.info/150386/R/1719631/572352.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#1719631]
Unternehmensinformation / Kurzprofil:
Datum: 29.07.2013 - 22:41 Uhr
Sprache: Deutsch
News-ID 282753
Anzahl Zeichen: 13406
contact information:
Town:
Kingsport
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 219 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Eastman Announces Second-Quarter 2013 Financial Results"
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).
