Eastman Reports 14% Increase in Adjusted EPS for First-Quarter 2015
(Thomson Reuters ONE) -
KINGSPORT, Tenn., April 30, 2015 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding non-core or non-recurring items, of $1.84 per
diluted share for first quarter 2015 versus $1.61 per diluted share for first
quarter 2014. Reported earnings were $1.14 per diluted share for first quarter
2015 versus $1.52 per diluted share for first quarter 2014. For detail of the
excluded items and reconciliation to reported company and segment earnings, see
Tables 3 and 4.
"We're off to a strong start to the year with excellent first-quarter earnings,
demonstrating our focus on execution in difficult business conditions," said
Mark Costa, chairman and CEO. "We've done a good job of improving operating
margins, reflecting the more specialty nature of our portfolio and our continued
discipline in managing costs. With our first-quarter results, we are well
positioned to deliver our sixth consecutive year of earnings growth in
2015." See the second paragraph under "Outlook" for the items excluded from
annual earnings comparisons.
(In millions, except per share amounts) 1Q2015 1Q2014
Sales revenue $2,443 $2,305
Earnings per diluted share $1.14 $1.52
Earnings per diluted share excluding $1.84 $1.61
non-core or non-recurring items*
Net cash provided by (used in) operating activities $91 ($30)
*For reconciliation to reported company and segment earnings, see Tables 3 and
4.
Corporate Results 1Q 2015 versus 1Q 2014
Sales revenue for first quarter 2015 was $2.4 billion, a 6 percent increase
compared with first quarter 2014, primarily due to sales revenue from the
Taminco Corporation, Commonwealth Laminating & Coating Inc., and aviation
turbine oil businesses acquired in 2014 partially offset by lower selling prices
primarily due to lower raw material and energy costs. Excluding the items
described in Tables 3 and 4, first-quarter 2015 operating earnings were $435
million compared with $383 million for first quarter 2014. The increase was
primarily due to both improved spread, as lower raw material and energy costs
exceeded lower selling prices, and earnings from acquired businesses. These were
partially offset by lower earnings in the Fibers segment, an unfavorable shift
in foreign currency exchange rates, and the negative impact of propane hedges.
Reported first-quarter 2015 operating earnings were $311 million compared with
$361 million for first quarter 2014.
Segment Results 1Q 2015 versus 1Q 2014
Additives & Functional Products - Sales revenue increased primarily due to sales
of products of the acquired Taminco specialty amines and crop protection
businesses partially offset by lower selling prices due to lower raw material
and energy costs. Operating earnings increased to $120 million for first quarter
2015 compared with $94 million for first quarter 2014 primarily due to earnings
from acquired businesses and improved spread as lower raw material and energy
costs exceeded lower selling prices, partially offset by an unfavorable shift in
foreign currency exchange rates and the negative impact of propane hedges.
Adhesives & Plasticizers - Sales revenue decreased primarily due to an
unfavorable shift in foreign currency exchange rates and lower plasticizers
selling prices. Lower plasticizers selling prices were primarily in response to
lower raw material and energy costs and continued competitive pressure.
Operating earnings increased to $53 million for first quarter 2015 compared with
$47 million for first quarter 2014 due to adhesives resins products earnings.
This increase resulted from slightly higher adhesives resins selling prices
attributed to solid demand in packaging and hygiene markets and constrained
industry supply due to limited raw material availability, and lower raw material
and energy costs, partially offset by an unfavorable shift in foreign currency
exchange rates.
Advanced Materials - Sales revenue decreased as sales of products of the
acquired Commonwealth Laminating & Coating performance films business were more
than offset by an unfavorable shift in foreign currency exchange rates and lower
selling prices primarily for copolyesters due to lower raw material and energy
costs. Excluding non-core or non-recurring items in both periods, operating
earnings increased to $75 million for first quarter 2015 compared with $71
million for first quarter 2014 primarily due to earnings from the acquired
business.
Fibers - Sales revenue decreased primarily due to lower acetate tow and acetyl
intermediates sales volume attributed to customer inventory destocking.
Excluding costs of the shutdown of the Workington, UK acetate tow manufacturing
site in first quarter 2015, operating earnings decreased to $90 million for
first quarter 2015 compared with $117 million for first quarter 2014 due to
lower acetate tow sales volume and related lower capacity utilization resulting
in higher unit costs partially offset by lower raw material and energy costs.
Specialty Fluids & Intermediates - Sales revenue increased primarily due to
sales of products of the acquired Taminco functional amines and aviation turbine
oil businesses and higher intermediates sales volume, partially offset by lower
selling prices for olefin-based intermediates. The lower olefin-based
intermediates selling prices were primarily in response to lower raw material
and energy costs. Operating earnings increased to $102 million for first quarter
2015 compared to $64 million for first quarter 2014 due to both improved spread
as lower raw material and energy costs exceeded lower selling prices and
earnings from the acquired businesses, partially offset by the negative impact
of propane hedges.
Cash Flow
Eastman generated $91 million in cash flows from operating activities
during first quarter 2015. Strong earnings were partially offset by a seasonal
increase in working capital. The first-quarter working capital increase was
lower than usual primarily due to the impact on inventories of the recent
decline in raw material and energy costs.
Outlook
Commenting on the outlook for full year 2015, Costa said: "Our outlook since
January has improved as our first quarter year over year earnings growth
demonstrates that we are benefitting from strong leadership positions in key
markets, the diversity of end-markets and geographies we serve, and improved
product mix from market adoption of our specialty products. We face increasing
challenges including global economic uncertainty, the strengthening U.S. dollar,
and the impact of volatile oil prices. Given our strong start to the year,
expectations for solid volume growth in our specialty businesses and continued
strong results from recent acquisitions, as well as our discipline in managing
costs, we are now well positioned for our sixth consecutive year of EPS growth.
We also continue to expect strong cash flow generation." Non-core and non-
recurring items are excluded from the earnings per share projection.
The earnings for 2014, 2013, 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"
sections of the company's Annual Reports on Form 10-K for 2014, 2013, 2012, and
2011.
Eastman will host a conference call with industry analysts on May 1, 2015 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 913-312-1295, passcode number
6673127. 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, May 1, to
11:00 a.m. ET, May 11, at 888-203-1112 or 719-457-0820, passcode 6673127.
Forward-Looking Statements: This news release includes forward-looking
statements concerning current expectations for future global economic
conditions; competitive position and acceptance of specialty products in key
markets; mix of products sold; foreign currency exchange rates; raw material and
energy costs, including crude oil prices, and other costs; non-core or non-
recurring costs, charges, income, and gains; revenue and earnings from acquired
businesses; and revenue, earnings, and cash flow for full year 2015. 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 2014 available, and the Form 10-Q
to be filed for first quarter 2015 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 2014 revenues of approximately
$9.5 billion. The company is headquartered in Kingsport, Tennessee, USA and
employs approximately 15,000 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
1Q 2015 Financial Tables:
http://hugin.info/150386/R/1917871/686202.pdf
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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#1917871]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 23:32 Uhr
Sprache: Deutsch
News-ID 390118
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contact information:
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Kategorie:
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