Eastman Announces Third-Quarter 2014 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., October 30, 2014 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding non-core or non-recurring items, of $1.89 per
diluted share for third quarter 2014 versus $1.68 per diluted share for third
quarter 2013. Reported earnings were $1.39 per diluted share for third quarter
2014 versus $1.97 per diluted share for third quarter 2013. For detail of the
excluded items and reconciliation to reported company and segment earnings, see
Tables 3 and 4.
"With our solid third-quarter sales revenue and earnings, we remain on track for
a fifth consecutive year of strong earnings growth despite continued global
economic uncertainty," said Mark Costa, chairman and CEO. "We also generated
strong cash flow in the quarter which puts us on track for record full-year cash
from operations." See the second paragraph under "Outlook" for the items
excluded from annual earnings comparisons.
(In millions, except per share amounts) 3Q2014 3Q2013
Sales revenue $2,413 $2,338
Earnings per diluted share $1.39 $1.97
Earnings per diluted share excluding $1.89 $1.68
non-core or non-recurring items*
Net cash provided by operating activities $560 $427
*For reconciliation to reported company and segment earnings, see Tables 3 and
4.
Corporate results 3Q 2014 versus 3Q 2013
Sales revenue was $2.4 billion, a 3 percent increase compared with third quarter
2013. Excluding the items described in Tables 3 and 4, operating earnings for
third quarter 2014 were $427 million compared with $405 million for third
quarter 2013 primarily due to increased Advanced Materials and Adhesives &
Plasticizers earnings. Reported third-quarter 2014 operating earnings were $338
million compared with $479 million for third quarter 2013.
Segment results 3Q 2014 versus 3Q 2013
Additives & Functional Products - Sales revenue increased primarily due to
higher coatings products selling prices and higher sales volume attributed to
strengthened demand in key end-markets. The increase was somewhat offset by
lower Crystex(®) insoluble sulfur rubber additive sales volume, primarily
attributed to softened demand in Asia Pacific and Latin America. Excluding non-
core or non-recurring items in third quarter 2014, operating earnings decreased
primarily due to higher raw material and energy costs, particularly for propane,
and development costs of next generation Crystex(®) insoluble sulfur technology,
partially offset by higher selling prices.
Adhesives & Plasticizers - Sales revenue increased mainly due to higher
adhesives resins sales volume, primarily attributed to stronger end-market
demand particularly for packaging and hygiene. Higher plasticizers sales volume
was offset by lower selling prices. Operating earnings increased primarily due
to higher sales volume and higher capacity utilization that resulted in lower
unit costs for adhesives resins.
Advanced Materials - Sales revenue increased due to higher sales volume across
the segment's portfolio of premium products, including Eastman Tritan((TM)
)copolyester, Eastman Visualize((TM)) Material, interlayers with acoustic
properties, and V-Kool(®) window film. The strong premium product sales growth
was attributed to continued market adoption. Excluding non-core or non-recurring
items in third quarter 2014, operating earnings increased primarily due to
higher sales volume and improved product mix.
Fibers - Sales revenue decreased primarily due to lower acetate tow sales
volume, partially offset by higher selling prices and increased sales of acetate
flake to Eastman's China acetate tow joint venture. The lower acetate tow sales
volume was attributed to additional industry capacity including Eastman's China
acetate tow joint venture, relatively flat demand in China resulting in a
reduction of imports, and customer buying patterns. Operating earnings were
relatively unchanged as higher selling prices and lower raw material and energy
costs were offset by lower acetate tow sales volume and related lower capacity
utilization resulting in higher unit costs.
Specialty Fluids & Intermediates - Sales revenue increased mainly due to higher
intermediates selling prices primarily attributed to decreased industry supply
in multiple intermediates product markets, partially offset by lower selling
prices for heat transfer fluids. Sales volume increased slightly due to acquired
aviation turbine oil products sales in third quarter 2014 mostly offset by lower
intermediates and heat transfer fluids sales volume. Excluding non-core or non-
recurring items in third quarter 2014, operating earnings increased primarily
due to higher intermediates selling prices and acquired aviation turbine oil
products sales volume, mostly offset by higher raw material and energy costs and
lower heat transfer fluids sales revenue.
Cash Flow
Eastman generated $560 million in cash from operating activities during third
quarter 2014 driven by strong earnings. During the quarter the company reduced
commercial paper borrowings by $211 million and repurchased shares totaling $50
million.
Outlook
Commenting on the outlook for full year 2014, Costa said: "Our portfolio of
businesses has delivered strong earnings year-to-date as we continue to benefit
from leadership positions in key markets, the diversity of end-markets and
geographies we serve, and market adoption of our premium products. During the
fourth quarter, we expect strong results as demand remains solid with normal
seasonality, product mix improvement continues, and raw material and energy
costs are a tailwind. We therefore expect 2014 earnings per share to approach
$7, delivering our fifth consecutive year of earnings growth." Non-core and non-
recurring items are excluded from the earnings per share projection.
The earnings for 2013, 2012, 2011, 2010, and 2009 referenced in the second
paragraph and in the "Outlook" section 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" sections of the company's Annual Reports on Form 10-K
for 2013, 2012, and 2011.
Eastman will host a conference call with industry analysts on October 31, 2014
at 8:00 a.m. ET. 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 913-312-0851,
passcode number 3776873. 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.
ET, October 31, to 11:00 a.m. ET, November 10, 2014 at 888-203-1112 or
719-457-0820, passcode 3776873.
Forward-Looking Statements: This news release includes forward-looking
statements concerning current expectations for future global and regional
economic conditions; mix of products sold; raw material and energy costs; and
non-core or non-recurring costs, charges, income, and gains; and revenue,
earnings, and cash flow for full year 2014. 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 2014 available, and the Form 10-Q to be filed
for third quarter 2014 and to be available, on the Eastman web site at
www.eastman.com in the Investors, SEC filings 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 2013 revenues of approximately
$9.4 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
2014 Q3 Financial Tables:
http://hugin.info/150386/R/1867406/656173.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1867406]
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2014 - 22:15 Uhr
Sprache: Deutsch
News-ID 348587
Anzahl Zeichen: 10865
contact information:
Town:
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Kategorie:
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