Eastman delivers year-over-year earnings growth in Q3

Solutia Acquisition

On July 2, 2012, the company completed the acquisition of Solutia Inc.  Beginning third-quarter 2012, the company changed its reportable segments due to changes in the company’s organization resulting from the Solutia acquisition.  

As required by purchase accounting, the acquired Solutia inventories were marked to fair value.  These inventories were sold in third quarter 2012 resulting in a one-time $75 million increase in cost of sales, net of the LIFO impact of these inventories.  Third-quarter 2012 results of operations also included $22 million of Solutia acquisition and integration costs and $28 million of severance charges associated with the acquisition and integration of Solutia.

Eastman is a global specialty chemicals company that produces a broad range of advanced materials, additives and functional products, specialty chemicals, and fibers that are found in products people use every day.

Eastman Chemical Company