Eastman Announces Third-Quarter 2013 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., Oct. 24, 2013 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding the non-core or non-recurring items described in
Tables 3 and 4, of $1.68 per diluted share for third quarter 2013 versus $1.57
per diluted share for third quarter 2012. Reported earnings were $1.97 per
diluted share in third quarter 2013 and $0.99 per diluted share in third quarter
2012. For detail of the excluded items and reconciliation to reported company
and segment earnings, see Tables 3 and 4.
"Our solid third-quarter earnings keep us on track for a fourth
consecutive year of double-digit earnings growth despite continued global
economic uncertainty and volatile raw material and energy costs," said Jim
Rogers, chairman and CEO. "Cash generation was also strong in the quarter, and
we expect to continue to generate strong free cash flow for years to come." See
"Outlook" paragraphs for items excluded from earnings comparisons and Table 5A
for reconciliation of cash from operations to free cash flow.
(In millions, except per share amounts) 3Q2013 3Q2012
Sales revenue $2,338 $2,259
Earnings per diluted share $1.97 $0.99
Earnings per diluted share excluding $1.68 $1.57
non-core or non-recurring items*
Net cash provided by operating activities $427 $353
*For reconciliation to reported company and segment earnings, see Tables 3 and
4 in the accompanying third-quarter 2013 financial tables.
Corporate Results - 3Q 2013 versus 3Q 2012
Sales revenue for third quarter 2013 was $2.3 billion, a 3 percent increase
compared with third quarter 2012 due primarily to higher sales volume in the
Additives & Functional Products and Advanced Materials segments, partially
offset by lower sales revenue in the Adhesives & Plasticizers segment.
Operating earnings in third quarter 2013 were $479 million compared to $263
million in third quarter 2012. Excluding the items described in Tables 3 and 4,
third-quarter 2013 operating earnings were $405 million compared to $397 million
in third quarter 2012. Operating earnings included the "Other" operating losses
detailed in Table 3.
Segment Results - 3Q 2013 versus 3Q 2012
Additives & Functional Products - Sales revenue increased primarily due to
higher sales volume of solvents product lines attributed to strengthened
coatings demand in the building and construction market supported by recent
capacity additions at the Longview, Texas facility. Higher sales revenue was
also the result of higher sales volume for cellulosic polymers and Crystex(®)
insoluble sulfur, both attributed to increased demand in the transportation
market. Third-quarter 2013 sales revenue included revenue from sales of certain
products sold primarily into the tires market which were previously reported in
the Adhesives & Plasticizers segment. Third-quarter 2012 operating earnings
included $19 million of additional costs of acquired Solutia inventories.
Excluding these costs, operating earnings increased to $111 million in third
quarter 2013 compared with $105 million in third quarter 2012. The increase was
primarily due to higher sales volume partially offset by higher raw material and
energy costs, particularly for propane.
Adhesives & Plasticizers - Sales revenue declined primarily due to lower selling
prices in both adhesives resins and plasticizers product lines and lower sales
volume in adhesives resins product lines. Lower adhesives resins selling prices
were attributed primarily to increased competitive pressure due to greater
industry supply attributed to increased availability of key raw materials and
additional competitor capacity. Lower selling prices for plasticizers were
primarily attributed to competitive pressures resulting from continued weakened
demand in Asia Pacific and Europe. Sales volume declined primarily due to sales
of certain products primarily sold into the tires market now being reported in
the Additives & Functional Products segment, partially offset by continued
substitution of phthalate plasticizers with non-phthalate plasticizers.
Operating earnings declined to $41 million in third quarter 2013 compared with
$73 million in third quarter 2012 primarily due to lower selling prices, higher
raw material and energy costs, lower adhesives resins sales volume and an
unfavorable shift in regional mix due to relatively lower sales in North America
of adhesives resins product lines.
Advanced Materials - Sales revenue increased primarily due to higher sales
volume for Eastman Tritan(TM) copolyester. Third-quarter 2012 operating earnings
included $39 million of additional costs of acquired Solutia inventories.
Excluding these costs, operating earnings increased to $69 million in third
quarter 2013 compared with $57 million in third quarter 2012 due to higher sales
volume and higher capacity utilization which led to lower unit costs, attributed
to increased demand for specialty plastics products, including Eastman
Tritan(TM) copolyester.
Fibers - Sales revenue increased due to higher selling prices in response to
higher raw material and energy costs, particularly for wood pulp. Operating
earnings increased to $113 million in third quarter 2013 compared with $98
million in third quarter 2012 due to higher selling prices.
Specialty Fluids & Intermediates - Sales revenue increased primarily due to
higher sales volume of olefin-based products sold into Asia Pacific and higher
selling prices for several product lines. Third-quarter 2012 operating earnings
included $17 million of additional costs of acquired Solutia
inventories. Excluding these costs, operating earnings decreased to $90 million
in third quarter 2013 compared with $96 million in third quarter 2012. The
decrease was primarily due to higher raw material and energy costs more than
offsetting higher selling prices.
Provision for Income Taxes
Excluding the tax impact of non-core or non-recurring items, the third-quarter
2013 effective tax rate was 27 percent compared to 31 percent for third quarter
2012. The third quarter 2013 effective tax rate was lower primarily due to a
benefit for adjustments to the tax provision to reflect the finalization of the
2012 consolidated U.S. federal income tax return.
Cash Flow
Eastman generated $427 million in cash from operating activities during
third-quarter 2013, primarily due to strong net earnings. During the quarter the
company reduced long-term borrowings by $250 million and repurchased shares
totaling $35 million.
Outlook
Commenting on the outlook for full year 2013, Rogers said: "Our businesses have
delivered strong results to date, and we expect that to continue in the fourth
quarter. However, the fourth quarter is normally seasonally slower and the pace
of global economic growth is uncertain. We also anticipate continued challenges
in the Adhesives & Plasticizers segment as well as higher raw material and
energy costs. We are therefore adjusting our full year 2013 expectation for
earnings per share to between $6.30 and $6.40." Solutia transaction and
integration costs and charges, asset impairments and restructuring charges, and
mark-to-market pension and OPEB gains and 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 the non-core or non-recurring items
detailed, with reconciliation to GAAP earnings, 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 October 25 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 913-981-5597, passcode number
3682948. 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, October
25, to 11:00 a.m. EDT, November 4, at 888-203-1112 or 719-457-0820, passcode
3682948.
Forward-Looking Statements: This news release includes forward-looking
statements concerning current expectations for global economic conditions; non-
core or non-recurring costs, charges, income, and gains; and company and segment
earnings in fourth quarter and full year 2013 and cash flow in 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 second quarter 2013 available, and the Form 10-Q to be filed for third
quarter 2013 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, Tennessee, USA 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
Q3 2013 Financial Tables:
http://hugin.info/150386/R/1738131/583023.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#1738131]
Unternehmensinformation / Kurzprofil:
Datum: 24.10.2013 - 22:37 Uhr
Sprache: Deutsch
News-ID 309318
Anzahl Zeichen: 12547
contact information:
Town:
Kingsport
Kategorie:
Business News
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