Eastman Announces Fourth-Quarter and Full-Year 2016 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., January 26, 2017 - Eastman Chemical Company (NYSE:EMN) today
announced reported earnings of $0.87 per diluted share for fourth-quarter 2016
versus $0.83 per diluted share for fourth-quarter 2015. Earnings excluding non-
core items were $1.51 per diluted share for fourth-quarter 2016 versus $1.59 per
diluted share for fourth-quarter 2015. For detail of the excluded non-core items
and reconciliation to reported company and segment earnings, see Tables 3A and
4.
"While the global business environment in 2016 was challenging, we remained
focused on execution of our specialty transformation strategy," said Mark Costa,
Board Chair and CEO. "We delivered volume growth in our specialty product lines,
continued mix improvement particularly in Advanced Materials driven by double-
digit growth of our innovative, high-margin products, and continued aggressive
cost management. We remain confident in the resiliency of our portfolio and the
sustainability of our strong cash flow going forward."
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(In millions, except per share amounts) 4Q16 4Q15 FY16 FY15
Sales revenue $2,188 $2,225 $9,008 $9,648
Operating earnings $273 $172 $1,404 $1,384
Operating earnings excluding non-core items* $336 $343 $1,534 $1,717
Earnings per diluted share $0.87 $0.83 $5.84 $5.66
Earnings per diluted share excluding $1.51 $1.59 $6.76 $7.28
non-core items*
Net cash provided by operating activities $390 $562 $1,385 $1,624
Net cash provided by operating activities $540 $562 $1,535 $1,624
excluding accelerated pension contribution**
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*For reconciliation to reported company and segment earnings, see Tables 3A and
4.
**For reconciliation to reported net cash provided by operating activities, see
Table 5B.
Corporate Results 4Q 2016 versus 4Q 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.
Reported operating earnings increased due to lower non-core items (primarily
annual mark-to-market pension and other post-retirement benefit plans valuation
loss and asset impairments and restructuring charges) in fourth-quarter 2016.
Operating earnings excluding non-core items declined as an increase in Chemical
Intermediates and Advanced Materials was more than offset by declines in Fibers
and Additives & Functional Products. Operating earnings were positively impacted
by cost reduction actions taken throughout the year.
Segment Results 4Q 2016 versus 4Q 2015
Additives & Functional Products - Sales revenue decreased due to lower selling
prices, primarily attributed to lower raw material and energy costs. The impact
of the lower selling prices was partially offset by higher sales volume across
the segment. Operating earnings decreased primarily due to lower selling prices
more than offsetting higher sales volume.
Advanced Materials - Sales revenue was unchanged as higher sales volume of
premium products, including Eastman Tritan(TM) copolyester and Saflex(®)
acoustic interlayers, was 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, improved product mix of
premium products, and lower unit costs due to higher capacity utilization,
partially offset by lower selling prices.
Chemical Intermediates - Sales revenue increased primarily due to higher sales
volume of olefin-based and functional amines products. Operating earnings
increased primarily due to higher sales volume and the reduced impact of
commodity hedge losses on raw material 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 operating
costs resulting from recent actions and lower raw material and energy costs.
Corporate Results 2016 versus 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.
Reported operating earnings increased due to lower non-core items (primarily
annual mark-to-market pension and other post-retirement benefit plans valuation
loss and asset impairments and restructuring charges) in 2016. Operating
earnings excluding non-core items declined as an increase in Advanced Materials
was more than offset by declines in the other segments. Operating earnings were
positively impacted by cost reduction actions taken throughout the year.
Segment Results 2016 versus 2015
Additives & Functional Products - Sales revenue decreased due to lower selling
prices, attributed primarily to lower raw material and energy costs. The impact
of the lower selling prices was 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,
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,
partially offset by higher sales volume of olefin-based and functional amines
products. The lower selling prices were primarily attributed to lower raw
material and energy costs, as well as competitive pressures due to lower oil
prices for most of the year. Operating earnings decreased due to lower selling
prices, which more than offset lower raw material and energy costs, higher sales
volume, and the reduced impact of commodity hedge losses on raw material costs.
Fibers - Sales revenue decreased 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. Reported operating earnings increased
due to asset impairments and restructuring charges in 2015. Operating earnings
excluding asset impairments and restructuring charges declined due to lower
sales volume and lower selling prices, partially offset by lower operating costs
resulting from recent actions and lower raw material and energy costs.
Cash Flow
Cash from operating activities was $1.4 billion in 2016. The company
contributed $200 million to its U.S. defined pension plans, including $150
million in fourth-quarter 2016 that had been planned for future years. In 2016,
the company generated $909 million of adjusted free cash flow (cash from
operating activities adjusted to exclude the fourth-quarter 2016 accelerated
pension contribution minus capital expenditures). See Table 5B. Priorities for
uses of available cash include payment of the quarterly dividend, repayment of
debt, funding targeted growth initiatives, and repurchasing shares.
In 2016, the company returned $417 million to stockholders through $272
million of dividends and $145 million of share repurchases. In addition, the
company reduced total borrowings by $414 million. During fourth-quarter 2016,
the company refinanced certain outstanding public debt with proceeds of the sale
of new euro-denominated debt securities and term loan borrowings, resulting in
extended weighted average maturity of outstanding debt and lowered interest
expense.
Outlook
Commenting on the outlook for full-year 2017, Costa said: "We enter 2017 well
positioned to benefit from our strong portfolio of specialty businesses that
leverage world-class technology platforms to deliver solid growth in attractive
end markets and additional earnings growth from our high-value, innovative
specialty products. However, we face an uncertain global business environment
and continued challenges in Fibers. As a result, we have already taken
aggressive cost reduction actions in fourth-quarter 2016 and are making great
progress in our efforts to accelerate innovation and market development
activities. Consistent with our previous guidance, we expect adjusted EPS growth
in 2017 to be between 8-12 percent."
Projected 2017 earnings exclude any non-core, unusual, or non-recurring items.
Our 2017 financial results forecasts do not include any projected 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 2017 earnings excluding non-core and any unusual or non-
recurring items to projected 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 2017. 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 third
quarter 2016 available, and the Form 10-K to be filed for 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 January 27, 2017
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 913-981-5526,
passcode number 9168087. 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, January 27, to 11:00 a.m. ET, February 6, at 888-203-1112 or 719-457-0820,
passcode 9168087.
Eastman is a global advanced materials and specialty additives 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 more than 100 countries and had 2016
revenues of approximately $9.0 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 Addington
423-224-0498 / tracy(at)eastman.com
Investors: Greg Riddle
212-835-1620 / griddle(at)eastman.com
ex99_01 2016.12.31 CC Tables only 1.26.17:
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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: 26.01.2017 - 22:43 Uhr
Sprache: Deutsch
News-ID 520300
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contact information:
Town:
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Kategorie:
Business News
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