Eastman Reports Record Adjusted EPS in Second Quarter
(Thomson Reuters ONE) -
KINGSPORT, Tenn., July 27, 2015 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding non-core items, of $2.01 per diluted share for
second quarter 2015 versus $1.92 per diluted share for second quarter 2014.
Reported earnings were $1.98 per diluted share for second quarter 2015 versus
$1.92 per diluted share for second quarter 2014. For detail of the excluded
items and reconciliation to reported company and segment earnings, see Tables
3A and 4.
"Our record results in second quarter and strong performance in the first half
of the year demonstrate the quality of our robust specialty portfolio, the value
of our acquisitions, and most importantly our ability to focus on execution and
deliver results," said Mark Costa, chairman and CEO. "We remain confident we
will deliver our sixth consecutive year of solid earnings growth in 2015." See
"Outlook" for the items excluded from annual earnings comparisons.
(In millions, except per share amounts) 2Q2015 2Q2014
Sales revenue $2,533
$2,460
Earnings per diluted share $1.98 $1.92
Earnings per diluted share excluding
non-core items* $2.01
$1.92
Net cash provided by operating activities $591 $419
*For reconciliation to reported company and segment earnings, see Tables 3A and
4.
Corporate Results 2Q 2015 versus 2Q 2014
Sales revenue for second quarter 2015 was $2.5 billion, a 3 percent increase
compared with second quarter 2014, primarily due to sales revenue from the
Taminco Corporation, Commonwealth Laminating & Coating Inc., and aviation
turbine oil businesses acquired in 2014. This was partially offset by lower
selling prices, particularly in the Specialty Fluids & Intermediates segment,
lower Fibers segment sales volume, and an unfavorable shift in foreign currency
exchange rates. Excluding the items described in Tables 3A and 4, second-quarter
2015 operating earnings were $480 million compared with $441 million for second
quarter 2014. The increase was primarily due to Advanced Materials segment
earnings growth, earnings from acquired businesses, and improved spread as lower
raw material and energy costs exceeded lower selling prices. These items were
partially offset by propane hedges, lower Fibers segment sales volume, and an
unfavorable shift in foreign currency exchange rates. Reported second-quarter
2015 operating earnings were $469 million compared with $436 million for second
quarter 2014.
Segment Results 2Q 2015 versus 2Q 2014
Additives & Functional Products - Sales revenue increased primarily due to sales
of products of the acquired Taminco specialty amines and crop protection
businesses, and higher coatings products sales volume attributed to demand in
key end-markets. These items were partially offset by lower coatings and other
formulated products selling prices due to lower raw material and energy costs
and an unfavorable shift in foreign currency exchange rates. Excluding non-core
items in second quarter 2014, operating earnings increased to $119 million for
second quarter 2015 compared with $103 million for second quarter 2014 primarily
due to earnings from acquired businesses.
Adhesives & Plasticizers - Sales revenue decreased primarily due to lower
plasticizers selling prices and an unfavorable shift in foreign currency
exchange rates. Lower plasticizers selling prices were primarily in response to
lower raw material and energy costs and continued competitive pressure.
Operating earnings increased to $63 million for second quarter 2015 compared
with $56 million for second quarter 2014 primarily due to lower raw material and
energy costs and slightly higher adhesives resins selling prices attributed to
demand in packaging and hygiene markets. These items were partially offset by
lower plasticizers selling prices, an unfavorable shift in foreign currency
exchange rates, and the negative impact of propane hedges.
Advanced Materials - Sales revenue increased due to higher sales volume across
the segment and sales of products of the acquired Commonwealth performance films
business, partially 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. Operating earnings increased to $135 million for
second quarter 2015 compared with $80 million for second quarter 2014 primarily
due to higher sales volume and improved product mix especially of Eastman
Tritan(TM) copolyester and interlayers with acoustic properties. Operating
earnings also benefited from earnings from the acquired business.
Fibers - Sales revenue decreased primarily due to lower acetate tow and acetyl
chemical sales volume attributed to customer inventory destocking. Excluding
non-core items in second quarter 2015, operating earnings decreased to $91
million for second quarter 2015 compared with $123 million for second quarter
2014 primarily due to lower acetate tow sales volume.
Specialty Fluids & Intermediates - Sales revenue increased primarily due to
sales of products of the acquired Taminco functional amines and aviation turbine
oil businesses, mostly offset by lower selling prices for olefin-based
intermediates. The lower selling prices were primarily in response to lower raw
material and energy costs. Excluding non-core items in second quarter 2014,
operating earnings decreased to $83 million for second quarter 2015 compared to
$96 million for second quarter 2014, primarily due to earnings from acquired
businesses being more than offset by the negative impact of propane hedges.
Cash Flow
Eastman generated $591 million in cash from operating activities during
second quarter 2015 primarily due to strong net earnings. Priorities for uses of
available cash include payment of the quarterly dividend, repayment of debt, and
funding targeted growth initiatives. Net debt, defined as borrowings minus cash
and cash equivalents, declined by $393 million during the second quarter.
Outlook
Commenting on the outlook for full year 2015, Costa said: "Our earnings outlook
for the year has improved due to our record second quarter earnings and our
strong first half of the year. These results reflect excellent performance of
our specialty businesses, including strong volume growth and product mix
improvement, and we expect this momentum to continue into the second half of the
year. We also face challenges in the second half of the year from the global
economic slowdown, volatile raw material and energy prices, and the
strengthening U.S. dollar. Despite these challenges, we remain confident we will
deliver a sixth consecutive year of solid earnings growth and continued strong
cash flow." 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 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 July 28, 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 913-312-0934, passcode number
1077297. 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, July 28, to
11:00 a.m. ET, August 7, at 888-203-1112 or 719-457-0820, passcode 1077297.
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 prices and 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-Q filed for first
quarter 2015 available, and the Form 10-Q to be filed for second 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
Second Quarter 2015 Financial Tables:
http://hugin.info/150386/R/1941456/701848.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#1941456]
Unternehmensinformation / Kurzprofil:
Datum: 27.07.2015 - 23:11 Uhr
Sprache: Deutsch
News-ID 409438
Anzahl Zeichen: 12180
contact information:
Town:
Kingsport
Kategorie:
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