Home / Knowledge / News / Textiles / Eastman Chemical Q4 2008 operating profit tumbles
Eastman Chemical Q4 2008 operating profit tumbles
30
Jan '09
Eastman Chemical Company announced a loss of $0.03 per diluted share for fourth quarter 2008 versus earnings from continuing operations of $1.25 per diluted share for fourth quarter 2007. Excluding the items described below for both periods, fourth-quarter 2008 earnings were $0.05 per diluted share, while fourth-quarter 2007 earnings from continuing operations were $1.27 per diluted share.

Included in the earnings for fourth quarter 2008 were asset impairments and restructuring charges of $24 million from completion of the restructuring at the South Carolina facility and charges related to a corporate severance program, other operating income of $16 million from the sale of certain mineral rights at an operating manufacturing site, and accelerated depreciation costs of $1 million. Fourth-quarter 2007 earnings from continuing operations included accelerated depreciation costs of $12 million and reductions to previously recognized asset impairments and restructuring charges resulting in a gain of $4 million.

“The current global recession has resulted in an unprecedented decline in demand and negatively impacted our fourth-quarter results," said Brian Ferguson, chairman and CEO. "The strategic actions we have taken over the last five years, as well as the cost reduction measures we recently announced, position us to weather the current storm and rebound decisively when demand recovers.”

Sales revenue for fourth quarter 2008 was $1.3 billion, a 23 percent decline compared with fourth quarter 2007. Sales revenue for both fourth-quarter 2008 and fourth-quarter 2007 included contract ethylene sales resulting from the fourth-quarter 2006 divestiture of the polyethylene business and contract polymer intermediates sales resulting from the fourth-quarter 2007 divestiture of PET polymers manufacturing facilities and related businesses in Mexico and Argentina. Fourth-quarter 2007 sales revenue also included sales from the divested Mexico and Argentina PET manufacturing facilities. Excluding these sales for both periods, sales revenue declined 16 percent as sales volume declined 18 percent. The decline in sales volume was attributed to the global recession which resulted in an unprecedented drop in demand.

Operating earnings in fourth quarter 2008 were $5 million compared with operating earnings of $144 million in fourth quarter 2007. Excluding accelerated depreciation costs, asset impairments and restructuring charges, and other operating income, fourth-quarter 2008 operating earnings were $14 million. Fourth-quarter 2007 operating earnings, excluding accelerated depreciation costs and a gain from reductions to previously recognized asset impairments and restructuring charges, were $152 million. The decline in operating earnings was due primarily to the sharp decline in demand which resulted in lower sales volume and historically low capacity utilization which resulted in higher unit costs. The company's fourth-quarter 2008 raw material and energy costs increased by $25 million compared with fourth quarter 2007.


Must ReadView All

Uzbekistan, S Korea to launch textile techno park in Sept

Textiles | On 19th Feb 2018

Uzbekistan, S Korea to launch textile techno park in Sept

Uzbekistan and South Korea plan to launch a modern textile techno...

3 African nations may face AGOA sanctions if Mitumba banned

Apparel/Garments | On 19th Feb 2018

3 African nations may face AGOA sanctions if Mitumba banned

Rwanda, Tanzania and Uganda will face US trade penalties, including...

India’s Uttar Pradesh woos Tiruppur knitwear industrialists

Apparel/Garments | On 19th Feb 2018

India’s Uttar Pradesh woos Tiruppur knitwear industrialists

Two top Uttar Pradesh government officials visited Tamil Nadu’s...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search