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Kingsport, Tenn., USA, Oct 31, 2014 - (ACN Newswire) - Eastman Chemical Company (NYSE:EMN) today announced earnings, excluding non-core or non-recurring items, of $1.89 per diluted share for third quarter 2014 versus $1.68 per diluted share for third quarter 2013. Reported earnings were $1.39 per diluted share for third quarter 2014 versus $1.97 per diluted share for third quarter 2013. For detail of the excluded items and reconciliation to reported company and segment earnings, see Tables 3 and 4.
"With our solid third-quarter sales revenue and earnings, we remain on track for a fifth consecutive year of strong earnings growth despite continued global economic uncertainty," said Mark Costa, chairman and CEO. "We also generated strong cash flow in the quarter which puts us on track for record full-year cash from operations." See the second paragraph under "Outlook" for the items excluded from annual earnings comparisons.
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(In millions, except per share amounts) 3Q2014 3Q2013
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Sales revenue $2,413 $2,338
Earnings per diluted share $1.39 $1.97
Earnings per diluted share excluding
non-core or non-recurring items* $1.89 $1.68
Net cash provided by operating activities $560 $427
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* For reconciliation to reported company and segment earnings, see
Tables 3 and 4.
Corporate results 3Q 2014 versus 3Q 2013
Sales revenue was $2.4 billion, a 3 percent increase compared with third quarter 2013. Excluding the items described in Tables 3 and 4, operating earnings for third quarter 2014 were $427 million compared with $405 million for third quarter 2013 primarily due to increased Advanced Materials and Adhesives & Plasticizers earnings. Reported third-quarter 2014 operating earnings were $338 million compared with $479 million for third quarter 2013.
Segment results 3Q 2014 versus 3Q 2013
Additives & Functional Products - Sales revenue increased primarily due to higher coatings products selling prices and higher sales volume attributed to strengthened demand in key end-markets. The increase was somewhat offset by lower Crystex(R) insoluble sulfur rubber additive sales volume, primarily attributed to softened demand in Asia Pacific and Latin America. Excluding non-core or non-recurring items in third quarter 2014, operating earnings decreased primarily due to higher raw material and energy costs, particularly for propane, and development costs of next generation Crystex(R) insoluble sulfur technology, partially offset by higher selling prices.
Adhesives & Plasticizers - Sales revenue increased mainly due to higher adhesives resins sales volume, primarily attributed to stronger end-market demand particularly for packaging and hygiene. Higher plasticizers sales volume was offset by lower selling prices. Operating earnings increased primarily due to higher sales volume and higher capacity utilization that resulted in lower unit costs for adhesives resins.
Advanced Materials - Sales revenue increased due to higher sales volume across the segment's portfolio of premium products, including Eastman Tritan(TM) copolyester, Eastman Visualize(TM) Material, interlayers with acoustic properties, and V-Kool(R) window film. The strong premium product sales growth was attributed to continued market adoption. Excluding non-core or non-recurring items in third quarter 2014, operating earnings increased primarily due to higher sales volume and improved product mix.
Fibers - Sales revenue decreased primarily due to lower acetate tow sales volume, partially offset by higher selling prices and increased sales of acetate flake to Eastman's China acetate tow joint venture. The lower acetate tow sales volume was attributed to additional industry capacity including Eastman's China acetate tow joint venture, relatively flat demand in China resulting in a reduction of imports, and customer buying patterns. Operating earnings were relatively unchanged as higher selling prices and lower raw material and energy costs were offset by lower acetate tow sales volume and related lower capacity utilization resulting in higher unit costs.
Specialty Fluids & Intermediates - Sales revenue increased mainly due to higher intermediates selling prices primarily attributed to decreased industry supply in multiple intermediates product markets, partially offset by lower selling prices for heat transfer fluids. Sales volume increased slightly due to acquired aviation turbine oil products sales in third quarter 2014 mostly offset by lower intermediates and heat transfer fluids sales volume. Excluding non-core or non-recurring items in third quarter 2014, operating earnings increased primarily due to higher intermediates selling prices and acquired aviation turbine oil products sales volume, mostly offset by higher raw material and energy costs and lower heat transfer fluids sales revenue.
Cash Flow
Eastman generated $560 million in cash from operating activities during third quarter 2014 driven by strong earnings. During the quarter the company reduced commercial paper borrowings by $211 million and repurchased shares totaling $50 million.
Outlook
Commenting on the outlook for full year 2014, Costa said: "Our portfolio of businesses has delivered strong earnings year-to-date as we continue to benefit from leadership positions in key markets, the diversity of end-markets and geographies we serve, and market adoption of our premium products. During the fourth quarter, we expect strong results as demand remains solid with normal seasonality, product mix improvement continues, and raw material and energy costs are a tailwind. We therefore expect 2014 earnings per share to approach $7, delivering our fifth consecutive year of earnings growth." 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 and in the "Outlook" section 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" sections 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 October 31, 2014 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 +1-913-312-0851, passcode number 3776873. 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 31, to 11:00 a.m. ET, November 10, 2014 at +1-888-203-1112 or +1-719-457-0820, passcode 3776873.
Forward-Looking Statements
This news release includes forward-looking statements concerning current expectations for future global and regional economic conditions; mix of products sold; raw material and energy costs; and non-core or non-recurring costs, charges, income, and gains; and revenue, 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-Q filed for second quarter 2014 available, and the Form 10-Q to be filed for third quarter 2014 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 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, visit www.eastman.com.
Contacts:
Media:
Tracy Kilgore
+1-423-224-0498 / tjkilgore@eastman.com
Investors:
Greg Riddle
+1-212-835-1620 / griddle@eastman.com
2014 Q3 Financial Tables: http://hugin.info/150386/R/1867406/656173.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
Topic: Press release summary
Source: Eastman Chemical Company
http://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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