The previously announced unplanned shutdown at the Kingsport, Tenn., facility negatively impacted second quarter 2014 operating earnings by approximately $10 million.
Eastman Chemical also posted earnings from continuing operations, excluding non-core or non-recurring items, of $1.92 per diluted share for second quarter 2014 versus $1.80 per diluted share for second quarter 2013.
Reported earnings from continuing operations were $1.92 per diluted share versus $1.69 per diluted share for second quarter 2013.
Sales revenue in the additives & functional products increased primarily due to higher sales volume for coatings product lines attributed to strengthened demand, particularly in key end markets. Higher sales volume also contributed to a rise in turnover in adhesives & plasticizers segment, more than offsetting lower selling prices.
Sales revenue in the advanced materials division rose marginally, as higher sales volume for premium products such as interlayers with acoustic properties and Eastman Tritan copolyester was mostly offset by lower sales volume for core products such as Flexvue coated films.
The fibers division recorded higher revenue due to higher selling prices and sales of acetate flake to Eastman’s China acetate tow joint venture more than offsetting lower acetate tow sales volume. The lower acetate tow sales volume was primarily due to additional industry capacity including the acetate tow joint venture.
In the specialty fluids & intermediates segment, revenue declined partly due to a decrease in sales volume resulting from the first-quarter weather-related outage at the Longview, Texas site and the second-quarter unplanned shutdown at the Kingsport site. Sales revenue was also negatively impacted by lower sales volume for intermediates product lines resulting from increased use of intermediates in the manufacture of higher-value downstream derivatives in other segments.
Eastman generated $419 million in cash from operating activities during second quarter 2014 primarily due to strong net earnings. During the quarter, the company completed the acquisition of the aviation turbine oil business from BP plc, which is now a part of the Specialty Fluids & Intermediates segment, and repurchased shares for a total of $100 million. In addition, the company issued $500 million of 30-year public debt at an interest rate of 4.65%, with proceeds to be used for general corporate purposes.
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