Eastman Releases First-Quarter Financial Results

May 1st, 2013 | Category: Industry News

Kingsport, Tenn.-based Eastman Chemical Co. recently released its earnings report for the first quarter of 2013 (Q1).

According to the report, sales revenue for Q1 was $2.3 billion, a 27-percent increase compared with the first quarter of 2012. Q1 included sales revenue from the acquired Solutia businesses. Pro forma combined sales revenue declined 1 percent.

Results from Q1 included sales revenue and operating earnings from the acquired Solutia interlayers and performance films product lines. Pro forma combined sales revenue increased primarily due to higher sales volume of interlayers products, particularly in Asia, attributed to strengthened demand in the transportation market and higher sales volume for Eastman Tritan™ copolyester. Excluding first-quarter 2012 restructuring charges, pro forma combined operating earnings increased to $65 million in Q1 of 2013 compared with $61 million in first quarter 2012 primarily as a result of slightly higher sales volume and increased sales of higher-margin products, including interlayers with acoustic properties, Eastman Tritan™ copolyester, and V-Kool® brand window films, according to a company statement.

Operating earnings in first quarter 2013 were $393 million compared with $264 million in first quarter 2012. Excluding Solutia acquisition-related costs and charges in both periods, operating earnings were $403 million in Q1 of 2013 and $273 million in Q1 of 2012. First quarter 2013 included operating earnings from the acquired Solutia businesses. Pro forma combined operating earnings, excluding Solutia acquisition-related costs and charges, were $403 million in first quarter 2013 compared with $363 million in first quarter 2012. Pro forma combined operating earnings increased primarily due to lower raw material and energy costs partially offset by lower selling prices.

“Our portfolio of specialty businesses continued to deliver strong earnings in the first quarter despite uncertain global economic conditions,” says Jim Rogers, chairman and CEO. “For full year 2013, we remain on track to achieve a fourth consecutive year of double-digit earnings growth while also generating strong cash flow.”

Commenting on the outlook for full year 2013, Rogers says: “We expect our leadership positions in key end-markets, the diversity of the end-markets we serve and our broad geographic footprint to continue to position us well for strong earnings growth. However, global economic uncertainty continues with particular weakness in Europe, and raw material and energy costs remain volatile.”

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