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Eastman Fibers sales revenue up by 9%
25 Jul '08
5 min read
Fibers – Sales revenue increased by 9 percent due primarily to higher selling prices. The higher selling prices were in response to higher raw material and energy costs, particularly for wood pulp and methanol. Operating earnings were $62 million in second quarter 2008 compared with $51 million in second quarter 2007 due to customer buying patterns and higher selling prices primarily in Asia Pacific.
Performance Chemicals and Intermediates – Sales revenue increased by 12 percent as higher selling prices more than offset lower sales volume. Both selling prices and sales volume were significantly impacted by contract ethylene sales resulting from the divestiture of the polyethylene business in fourth quarter 2006. Excluding the contract ethylene sales, PCI's sales revenue increased by 8 percent due to higher selling prices which more than offset an 8 percent decline in sales volume.
The lower sales volume was primarily due to lower production volume for bulk olefins product lines resulting from the previously announced shutdown of a cracking unit in fourth quarter 2007 which was partially offset by higher sales volume for acetyl product lines.
Operating earnings, excluding accelerated depreciation costs in both periods and asset impairments and restructuring charges in second quarter 2008, were $58 million in second quarter 2008 compared with $64 million in second quarter 2007, as higher raw material and energy costs, particularly for propylene, propane, and natural gas, more than offset higher selling prices.
Performance Polymers – Sales revenue declined by 24 percent primarily due to the divestiture of the PET polymers manufacturing facilities and related businesses in Mexico and Argentina in fourth quarter 2007.
Excluding contract polymer intermediates sales to divested manufacturing facilities, sales revenue from U.S. PET manufacturing sites declined by 4 percent as a 14 percent decline in sales volume was mostly offset by higher selling prices in response to higher raw material and energy costs, particularly for paraxylene and ethylene glycol.
The decline in sales volume was due to rationalization of higher cost PET and intermediates assets as part of the continued transformation of the PET business. Excluding accelerated depreciation costs and asset impairments and restructuring charges for both periods, operating results for U.S.
PET manufacturing sites improved to operating earnings of $6 million in second quarter 2008 compared to a loss of $10 million in second quarter 2007. The improvement was due primarily to improved operation of the company's South Carolina PET facility based on IntegRex technology.
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Performance Chemicals and Intermediates – Sales revenue increased by 12 percent as higher selling prices more than offset lower sales volume. Both selling prices and sales volume were significantly impacted by contract ethylene sales resulting from the divestiture of the polyethylene business in fourth quarter 2006. Excluding the contract ethylene sales, PCI's sales revenue increased by 8 percent due to higher selling prices which more than offset an 8 percent decline in sales volume.
The lower sales volume was primarily due to lower production volume for bulk olefins product lines resulting from the previously announced shutdown of a cracking unit in fourth quarter 2007 which was partially offset by higher sales volume for acetyl product lines.
Operating earnings, excluding accelerated depreciation costs in both periods and asset impairments and restructuring charges in second quarter 2008, were $58 million in second quarter 2008 compared with $64 million in second quarter 2007, as higher raw material and energy costs, particularly for propylene, propane, and natural gas, more than offset higher selling prices.
Performance Polymers – Sales revenue declined by 24 percent primarily due to the divestiture of the PET polymers manufacturing facilities and related businesses in Mexico and Argentina in fourth quarter 2007.
Excluding contract polymer intermediates sales to divested manufacturing facilities, sales revenue from U.S. PET manufacturing sites declined by 4 percent as a 14 percent decline in sales volume was mostly offset by higher selling prices in response to higher raw material and energy costs, particularly for paraxylene and ethylene glycol.
The decline in sales volume was due to rationalization of higher cost PET and intermediates assets as part of the continued transformation of the PET business. Excluding accelerated depreciation costs and asset impairments and restructuring charges for both periods, operating results for U.S.
PET manufacturing sites improved to operating earnings of $6 million in second quarter 2008 compared to a loss of $10 million in second quarter 2007. The improvement was due primarily to improved operation of the company's South Carolina PET facility based on IntegRex technology.
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Eastman Chemical Company
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