Eastman Q1 diluted EPS drops 3.1%

25 Apr '14

2 min read

Eastman Chemical Company 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.

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.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.

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.

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.

“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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