Eastman Announces Third-Quarter 2016 Financial Results
(Thomson Reuters ONE) -
Eastman Announces Third-Quarter 2016 Financial Results
KINGSPORT, Tenn., October 27, 2016 - Eastman Chemical Company (NYSE:EMN) today
announced reported earnings of $1.56 per diluted share for third quarter 2016
versus $1.71 per diluted share for third quarter 2015. Earnings excluding non-
core items were $1.86 per diluted share for third quarter 2016 versus $1.84 per
diluted share for third quarter 2015. For detail of the excluded non-core items
and reconciliation to reported company and segment earnings, see Tables 3A and
4.
"We are continuing to demonstrate excellent execution of our specialty
transformation strategy resulting in sustainable, long-term growth through
innovation in attractive end markets, which is offsetting challenges in Fibers
and Chemical Intermediates," said Mark Costa, Board Chair and CEO. "Our strong
third quarter results reflect broad-based volume growth, particularly in our
specialty product lines, as well as continued disciplined cost management. We
remain confident in the resiliency of our portfolio and the sustainability of
our strong free cash flow going forward."
(In millions, except per share amounts)
3Q2016 3Q2015
Sales revenue
$2,287 $2,447
Operating earnings
$356 $432
Operating earnings excluding non-core items*
$416 $459
Earnings per diluted share
$1.56 $1.71
Earnings per diluted share excluding
non-core items* $1.86
$1.84
Net cash provided by operating activities
$450 $368
*For reconciliation to reported company and segment earnings, see Tables 3A and
4.
Corporate Results 3Q 2016 versus 3Q 2015
Sales revenue declined primarily due to lower selling prices and lower Fibers
sales volume more than offsetting higher sales volume in the other segments.
Operating earnings declined as an increase in Advanced Materials was more than
offset by declines in the other segments.
Segment Results 3Q 2016 versus 3Q 2015
Additives & Functional Products - Sales revenue decreased due to lower selling
prices primarily attributed to lower raw material and energy costs, partially
offset by higher sales volume, across the segment. Operating earnings decreased
primarily due to lower selling prices more than offsetting lower raw material
and energy costs and higher sales volume.
Advanced Materials - Sales revenue increased due to higher sales volume of
premium products including Eastman Tritan(TM) copolyester, Saflex(®) acoustic
interlayers, and performance films. This was partially offset by lower selling
prices, primarily for other copolyesters, attributed to lower raw material and
energy costs. Operating earnings increased 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 due to lower selling prices.
The lower selling prices were primarily attributed to the negative impact of
continued competitive pressures due to lower oil prices and weak demand in Asia
Pacific. Operating earnings declined primarily due to lower selling prices more
than offsetting lower raw material and energy costs and lower hedging costs.
Fibers - Sales revenue decreased primarily due to lower sales volume and lower
selling prices, particularly for acetate tow. Lower acetate tow sales volume was
primarily due to reduced sales in China. Operating earnings declined due to
lower sales volume and lower selling prices, partially offset by lower raw
material and energy costs and actions taken to reduce operating costs.
Cash Flow
Eastman generated $450 million in cash from operating activities during
third quarter 2016. Priorities for uses of available cash include payment of the
quarterly dividend, repayment of debt, funding targeted growth initiatives, and
repurchasing shares. Total borrowings decreased $196 million during the third
quarter. The company contributed $50 million to its U.S. defined pension plans
and repurchased $75 million of shares during the quarter.
Through the first nine months of 2016 the company returned $324 million to our
stockholders through $120 million of share repurchases and $204 million of
dividends. In addition, the company reduced total borrowings by $400 million and
generated cash from operations of $991 million and $616 million of free cash
flow (defined as cash from operating activities minus capital expenditures). See
Tables 5A, 5B and 6A.
Outlook
Commenting on the outlook for full-year 2016, Costa said: "Our solid third-
quarter results demonstrate that we are doing an excellent job of executing our
specialty strategy in what remains a challenging global business climate. We are
continuing to benefit from strong growth of high value, innovative products as
well as significant cost reductions. For full-year 2016, our outlook for
adjusted earnings per share has improved to between $6.70 and $6.80."
The full-year 2016 projected earnings exclude the non-core items in first nine
months 2016 detailed in Tables 3A and 4 and will exclude any non-core, unusual,
or non-recurring items in fourth quarter 2016. Our fourth-quarter 2016 financial
results forecasts do not include non-core items (such as mark-to-market pension
and other postretirement benefit gain or loss) or any unusual or non-recurring
items, and we accordingly are unable to reconcile projected full-year 2016
earnings excluding non-core and any unusual or non-recurring items to reported
GAAP earnings without unreasonable efforts.
Forward-Looking Statements
This news release includes forward-looking statements concerning current
expectations and assumptions for future global economic conditions; competitive
position and acceptance of specialty products in key markets; mix of products
sold; raw material and energy prices and costs, and other costs; and revenue,
earnings, and cash flow for full year 2016. Such expectations and assumptions
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 and
assumptions 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 2016 available, and the Form 10-Q to be filed for third quarter 2016 and
to be available, on the Eastman web site at www.eastman.com in the Investors,
SEC filings section.
Conference Call and Webcast Information
Eastman will host a conference call with industry analysts on October 28, 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 913-312-1238,
passcode number 533497. 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 28, to 11:00 a.m. ET, November 7, at 888-203-1112 or 719-457-0820,
passcode 533497.
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 / tracy(at)eastman.com
Investors: Greg Riddle
212-835-1620 / griddle(at)eastman.com
ex99_01 2016.09.30 CC Tables FINAL:
http://hugin.info/150386/R/2052376/768134.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eastman Chemical Company via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 27.10.2016 - 22:50 Uhr
Sprache: Deutsch
News-ID 503445
Anzahl Zeichen: 10330
contact information:
Town:
Kingsport
Kategorie:
Business News
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