Eastman Announces First-Quarter 2016 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., April 28, 2016 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding non-core items, of $1.71 per diluted share for
first quarter 2016 versus $1.84 per diluted share for first quarter 2015.
Reported earnings were $1.69 per diluted share for first quarter 2016 versus
$1.14 per diluted share for first quarter 2015. For detail of the excluded items
and reconciliation to reported company and segment earnings, see Tables 3A and
4.
"Our solid first-quarter earnings demonstrate the resilience of our portfolio in
the face of a challenging global business environment," said Mark Costa,
chairman and CEO. "We are focused on driving results for stockholders through
strong growth from our high value, innovative products as well as disciplined
cost management. We remain confident in our long term strategy to win with our
specialty products in attractive end markets."
(In millions, except per share amounts)
1Q2016 1Q2015
Sales revenue
$2,236 $2,443
Earnings per diluted share
$1.69 $1.14
Earnings per diluted share excluding
non-core items*
$1.71 $1.84
Net cash provided by operating activities $47
$91
*For reconciliation to reported company and segment earnings, see Tables 3A and
4.
Corporate Results 1Q 2016 versus 1Q 2015
Sales revenue for first quarter 2016 was $2.2 billion versus $2.4 billion for
first quarter 2015, primarily due to a decline in Chemical Intermediates.
Excluding the non-core items described in Tables 3A and 4, first-quarter 2016
operating earnings were $406 million compared with $435 million for first
quarter 2015 as an increase in Advanced Materials was more than offset by a
decline in Chemical Intermediates. Reported first-quarter 2016 operating
earnings were $399 million compared with $311 million for first quarter 2015.
Segment Results 1Q 2016 versus 1Q 2015
Additives & Functional Products - Sales revenue decreased primarily due to lower
selling prices attributed to lower raw material and energy costs and competitive
pressure for certain products, particularly in Asia Pacific. Excluding a non-
core item in first quarter 2016, operating earnings decreased to $151 million
for first quarter 2016 compared with $157 million for first quarter 2015,
primarily due to an unfavorable shift in foreign currency exchange rates.
Advanced Materials - Sales revenue increased due to higher sales volume of
premium products, including Eastman Tritan(®)copolyester and Saflex(®) acoustic
interlayers. This was partially offset by lower selling prices, primarily for
copolyesters, attributed to lower raw material and energy costs. Excluding a
non-core item in first quarter 2015, operating earnings increased to $108
million for first quarter 2016 compared with $75 million for first quarter 2015
primarily due to higher sales volume and improved product mix of premium
products and lower unit costs due to higher capacity utilization.
Chemical Intermediates - Sales revenue decreased primarily due to lower selling
prices attributed to lower raw material and energy costs and continued
competitive pressure resulting from weak demand in Asia Pacific. Operating
earnings decreased to $67 million for first quarter 2016 compared to $118
million for first quarter 2015 due to lower selling prices more than offsetting
lower raw material and energy costs.
Fibers - Sales revenue decreased primarily due to lower acetyl chemical sales
volume and lower acetate tow selling prices, mostly offset by higher acetate tow
sales volume. Lower acetyl chemical sales volume was due to lower cost internal
sourcing of cellulose acetate flake raw materials rather than from the joint
venture in Kingsport. Higher acetate tow sales volume was attributed to customer
buying patterns. Excluding a non-core item in first quarter 2015, operating
earnings decreased to $86 million for first quarter 2016 compared with $90
million for first quarter 2015 as lower selling prices were partially offset by
higher acetate tow sales volume, lower raw material and energy costs, and
reduced operating costs resulting from recent actions.
Cash Flow
Eastman generated $47 million in cash from operating activities during
first quarter 2016. Strong earnings were partially offset by a seasonal increase
in working capital. Priorities for uses of available cash include payment of the
quarterly dividend, repayment of debt, funding targeted growth initiatives, and
repurchasing shares.
Outlook
Commenting on the outlook for full-year 2016, Costa said: "Our solid first-
quarter earnings demonstrate that we continue to benefit from strong growth of
high value, innovative specialty products. We are also benefitting from the
actions we have taken to accelerate our innovation and market development
activities and to significantly increase our cost reduction efforts. However, we
face increasing competitive pressures from slow global economic growth, low oil
prices, and weaker Asian and European currencies. On balance, we continue
driving hard to deliver 2016 earnings per share that approach 2015 earnings per
share." Non-core and any unusual or non-recurring items are excluded from the
earnings per share projection.
Eastman will host a conference call with industry analysts on April 29, 2016 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 913-312-0962, passcode number
4665956. 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, April 29, to
11:00 a.m. ET, May 9, at 888-203-1112 or 719-457-0820, passcode 4665956.
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, and other costs; non-core and any unusual or non-
recurring costs, charges, income, and gains; and revenue, earnings, and cash
flow for full year 2016. 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 2015 available, and the Form 10-Q to be filed for first quarter 2016
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 2015 revenues of approximately
$9.6 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
Q12016FinancialTables:
http://hugin.info/150386/R/2008202/742689.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#2008202]
Unternehmensinformation / Kurzprofil:
Datum: 28.04.2016 - 23:11 Uhr
Sprache: Deutsch
News-ID 467431
Anzahl Zeichen: 10030
contact information:
Town:
Kingsport
Kategorie:
Business News
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