Eastman Chemical Q4 2008 operating profit tumbles

30 Jan '09

4 min read

Coatings, Adhesives, Specialty Polymers and Inks – Sales revenue declined by 14 percent as lower sales volume was partially offset by higher selling prices. The lower sales volume was due to the sharp decline in customer demand in all regions attributed to the global recession. Operating earnings, excluding asset impairments and restructuring charges and other operating income in fourth quarter 2008, were $32 million in fourth quarter 2008 compared with $45 million in fourth quarter 2007 with the decline primarily due to lower sales volume, higher unit costs from lower capacity utilization, and higher raw material and energy costs including losses from the settlement of commodity hedges, partially offset by higher selling prices.

Fibers – Sales revenue declined by 2 percent as lower sales volume was partially offset by higher selling prices. The lower sales volume was due to lower demand for acetate yarn and acetyl chemicals attributed to the global recession. Fourth-quarter 2008 operating earnings were $43 million compared with $62 million in fourth quarter 2007. The decline in operating earnings was due to lower sales volume and higher raw material and energy costs, partially offset by higher selling prices.

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Eastman Chemical Company

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