Eastman Announces First-Quarter 2017 Financial Results
(Thomson Reuters ONE) -
KINGSPORT, Tenn., April 27, 2017 - Eastman Chemical Company (NYSE:EMN) today
announced reported earnings of $1.89 per diluted share for first-quarter 2017
versus $1.69 per diluted share for first quarter 2016. Adjusted earnings were
$1.83 per diluted share for first quarter 2017 versus $1.71 per diluted share
for first quarter 2016. For detail of the adjustments and reconciliation to
reported company and segment earnings, see Tables 3A, 4A, and 4B.
"Our solid first-quarter results once again demonstrate the strength and
resiliency of our portfolio," said Mark Costa, Board Chair and CEO. "We
delivered strong volume growth in our specialty businesses driven by innovative,
high margin products which are accelerating demand growth in attractive, niche
markets. We also continue to benefit from aggressive cost management and
disciplined capital allocation. We remain confident in the resiliency of our
portfolio and the sustainability of our strong cash flow going forward."
(In millions, except per share amounts)
1Q2017 1Q2016
Sales revenue
$2,303 $2,236
Operating earnings
$397 $399
Adjusted operating earnings*
$397 $406
Earnings per diluted share
$1.89 $1.69
Adjusted earnings per diluted share*
$1.83 $1.71
Net cash provided by operating activities
$52 $51
*For adjusted provision for income taxes in 1Q 2017, non-core items in 1Q 2016,
and reconciliation to reported company and segment earnings, see Tables 3A, 4A,
and 4B.
Segment Results 1Q 2017 versus 1Q 2016
Additives & Functional Products - Sales revenue increased due to higher sales
volume across the segment, partially offset by slightly lower selling prices and
an unfavorable shift in foreign currency exchange rates. The lower selling
prices were primarily attributed to lower raw material prices in the prior year.
Operating earnings were relatively unchanged as higher sales volume was mostly
offset by higher raw material and energy costs, lower selling prices, and an
unfavorable shift in foreign currency exchange rates.
Advanced Materials - Sales revenue increased due to improved product mix
resulting from higher sales volume of premium products including Eastman
Tritan(TM) copolyester, performance films, and Saflex(®) acoustic interlayers.
Operating earnings increased due to higher sales volume, improved product mix of
premium products, and fixed cost leverage, partially offset by higher raw
material and energy costs and lower selling prices.
Chemical Intermediates - Sales revenue increased primarily due to higher selling
prices. The higher selling prices were attributed to higher raw material prices
and improved competitive conditions. Operating earnings increased primarily due
to higher selling prices and lower commodity hedge costs, partially offset by
higher raw material and energy 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 and customer buying patterns. Lower
acetate tow selling prices were primarily due to lower industry capacity
utilization rates. Operating earnings declined due to lower sales volume and
lower selling prices, partially offset by lower operating costs resulting from
recent actions.
Cash Flow
Eastman generated $52 million in cash from operating activities during
first-quarter 2017. Strong earnings were partially offset by a normal seasonal
increase in working capital. Share repurchases totaled $75 million in first
quarter 2017. 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 2017, Costa said: "We started out 2017
with convincing first-quarter results, and we expect our innovative, high margin
products to continue to drive compelling growth in what remains an uncertain
global business environment. Aggressive cost management and disciplined capital
allocation are also expected to continue contributing to earnings growth,
helping to offset challenges in Fibers. We remain confident in the actions we
are taking to deliver growth despite the challenges we face, and therefore
continue to expect adjusted EPS growth in 2017 to be between 8-12 percent."
The full-year 2017 projected earnings exclude any non-core, unusual, or non-
recurring items in the remaining nine months of 2017 and assumes that the
adjusted tax rate detailed in Tables 4A and 4B for first quarter 2017 will be
the actual rate for full-year 2017. Our 2017 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 2017 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 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-K filed for 2016
available, and the Form 10-Q to be filed for first quarter 2017 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 April 28, 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 913-312-0378, passcode number
5196633. 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 28 to
11:00 a.m. ET, May 8 at 888-203-1112 or 719-457-0820, passcode 5196633.
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 2017.03.31 CC Tables 4.27.17 FINAL:
http://hugin.info/150386/R/2099984/795916.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: 27.04.2017 - 22:39 Uhr
Sprache: Deutsch
News-ID 538975
Anzahl Zeichen: 9715
contact information:
Town:
Kingsport
Kategorie:
Business News
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