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2014-04-24

Eastman Chemical Company: Eastman Announces First-Quarter 2014 Financial Results

KINGSPORT, Tenn., April 24, 2014 - Eastman Chemical Company (NYSE:EMN) today
announced earnings, excluding non-core or non-recurring items, of $1.61 per
diluted share for first quarter 2014 versus $1.62 per diluted share for first
quarter 2013. Reported earnings were $1.52 per diluted share for first
quarter 2014 versus $1.57 per diluted share for first quarter 2013. For
detail of the excluded items and reconciliation to reported company and
segment earnings, see Tables 3 and 4.

"We reported solid results in the first quarter despite a global economy that
continues to be lackluster," said Mark Costa, CEO. "We remain focused on
growth through Eastman-specific actions, including serving growing markets
with capacity additions, improving our mix with premium products, and
disciplined capital allocation. As a result, Eastman is well positioned for a
fifth consecutive year of strong earnings growth." See the second paragraph
under "Outlook" for the items excluded from annual earnings comparisons.

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|(In millions, except per share amounts) 1Q2014 1Q2013 |
|Sales revenue $2,305 $2,307 |
|Earnings per diluted share $1.52 $1.57 |
|Earnings per diluted share excluding $1.61 $1.62 |
| |
|non-core or non-recurring items* |
|Net cash (used in) provided by operating activities ($30) $5 |
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*For reconciliation to reported company and segment earnings, see Tables 3 and
4.

Corporate
Results
1Q 2014 versus 1Q 2013

Sales revenue was $2.3 billion for both periods. Operating earnings for first
quarter 2014 were $361 million compared with $393 million for first quarter
2013. Excluding the items described in Tables 3 and 4, first quarter 2014
operating earnings were $383 million compared with $403 million for first
quarter 2013, with the decline primarily due to lower Specialty
Fluids&Intermediates segment earnings. First-quarter 2014 operating earnings
included lower "Other" operating losses as detailed in Table 3.

Segment Results 1Q 2014 versus 1Q 2013

Additives&Functional Products -
Sales revenue increased slightly as higher sales volume for coatings more than
offset lower sales volume for rubber additives. The higher sales volume for
coatings was primarily attributed to strong demand in the building and
construction and transportation markets. The lower sales volume for rubber
additives was primarily attributed to customer inventory destocking in Asia
Pacific. Operating earnings declined to $94 million for first quarter 2014
compared with $98 million for first quarter 2013 primarily due to higher raw
material and energy costs, particularly for propane.

Adhesives&Plasticizers -
Sales revenue was unchanged as higher sales volume for adhesives resins was
offset by lower selling prices for both adhesives resins and plasticizers.
Higher sales volume for adhesives resins was primarily attributed to stronger
end-market demand, particularly for hygiene and packaging, and customer
inventory destocking that negatively impacted first quarter 2013. Lower
selling prices for adhesives resins were primarily due to continued
competitive pressure resulting from greater industry supply attributed to
increased availability of key raw materials and additional competitor
capacity. Lower selling prices for plasticizers were primarily attributed to
continued competitive pressures resulting from weakened demand in Asia
Pacific and Europe. Operating earnings declined to $47 million for first
quarter 2014 compared with $49 million for first quarter 2013, primarily due
to lower selling prices partially offset by lower operating costs and higher
sales volume.

Advanced Materials -
Sales revenue was relatively unchanged as higher sales volume for Eastman
Tritan(TM) copolyester and premium acoustic interlayers was offset by lower
performance films sales volume which was expected due to changes in customer
incentive terms in Asia Pacific. Excluding non-core or non-recurring items in
first quarter 2014, operating earnings increased to $71 million for first
quarter 2014 compared with $65 million for first quarter 2013, primarily due
to lower unit costs for specialty plastics. The lower unit costs were due to
higher capacity utilization resulting from previous inventory management
decisions and to meet demand for Eastman Tritan(TM) copolyester.

Fibers -
Sales revenue increased due to higher selling prices, partially offset by
lower sales volume. Lower acetate tow sales volume, primarily due to the
combination of customer buying patterns and additional industry capacity,
including Eastman's China acetate tow joint venture, was partially offset by
acetate flake sales volume to the joint venture. Operating earnings increased
to $117 million for first quarter 2014 compared with $114 million for first
quarter 2013, primarily due to higher selling prices and sales of acetate
flake to the joint venture more than offsetting lower acetate tow sales
volume.

Specialty Fluids&Intermediates -
Sales revenue decreased primarily due to lower sales volume for specialty
fluids and other intermediates, partially offset by higher selling prices.
Lower sales volume for specialty fluids was primarily due to the timing of
customer project completions. Higher selling prices were primarily due to
increased sales of higher priced specialty fluids and higher raw material and
energy costs. Operating earnings decreased to $64 million for first quarter
2014 compared to $95 million for first quarter 2013 primarily due to higher
raw material and energy costs, particularly for propane, lower sales volume
for specialty fluids, and costs of a weather-related outage at the Longview,
Texas facility.

Cash Flow

Eastman used $30 million in cash from operating activities during first
quarter 2014 primarily due to a seasonal increase in working capital, mostly
receivables and inventory. Share repurchases totaled $260 million during
first quarter 2014.

Outlook

Commenting on the outlook for full year 2014, Costa said, "Our solid
first-quarter earnings are a good start to the year. Looking forward, we
expect sales revenue growth in the remaining three quarters and for full-year
sales revenue to be consistent with global GDP growth. We also expect that
benefits from Eastman-specific actions and from balanced deployment of our
strong cash flow will accelerate earnings growth for the remainder of the
year. Given the strength of our differentiated portfolio of businesses, we
continue to expect 2014 earnings per share to be between $6.70 and $7.00."
Non-core and non-recurring items are excluded from the earnings per share
projection.

The earnings for 2013, 2012, 2011, 2010, and 2009 referenced in the second
paragraph of this release are non-GAAP and exclude the non-core or
non-recurring items detailed, with reconciliation to GAAP earnings, in the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" section of the company's Annual Reports on Form 10-K for 2013,
2012, and 2011.

Eastman will host a conference call with industry analysts on April 25, 2014
at 8:00 a.m. ET. To listen to the live webcast of the conference call and
view the accompanying slides, go towww.investors.eastman.com,
Events&Presentations. To listen via telephone, the dial-in number is
913-312-0690, passcode number 1629560. A web replay, a replay in downloadable
MP3 format, and the accompanying slides will be available
atwww.investors.eastman.com, Events&Presentations. A telephone replay will be
available continuously from 11:00 a.m. ET, April 25, to 11:00 a.m. ET, May 5,
at 888-203-1112 or 719-457-0820, passcode 1629560.

Forward-Looking Statements:
This news release includes forward-looking statements concerning current
expectations for future global economic conditions; company manufacturing
capacity additions, mix of products sold, and capital expenditures,
acquisitions, debt, dividends, and stock repurchases; non-core or
non-recurring costs, charges, income, and gains; company and segment revenue
and earnings; and cash flow for full year 2014. 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 2013
available, and the Form 10-Q to be filed for first quarter 2014 and to be
available, on the Eastman web site atwww.eastman.comin 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 2013
revenues of approximately $9.4 billion. The company is headquartered in
Kingsport, Tennessee, USA and employs approximately 14,000 people around the
world. For more information, visitwww.eastman.com.

# # #

Contacts:

Media: Tracy Kilgore
423-224-0498 /tjkilgore@eastman.com

Investors: Greg Riddle
212-835-1620 /griddle@eastman.com

Q1 2014 Financial Tables
http://hugin.info/150386/R/1779888/608355.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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

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