Sales revenue increases at Eastman's Fibers segment
Eastman Chemical Company announced earnings of $2.02 per diluted share for second quarter 2010 versus $0.89 per diluted share for second quarter 2009.
Excluding $3 million of restructuring charges in second quarter 2010 and a $3 million reduction of a previous restructuring charge in second quarter 2009, earnings were $2.05 per diluted share in second quarter 2010 and $0.86 in second quarter 2009. For reconciliations to reported company and segment earnings, see Tables 3 and 4 in the accompanying second-quarter 2010 financial tables.
"Strong results from our solid core businesses led Eastman to report the best quarterly earnings per share in the company's history,” said Jim Rogers, president and CEO. "The record earnings are driven by the combination of a continued rebound in demand across the company and in all regions, growth initiatives that are delivering results, and the positive impact of strategic actions that have improved our portfolio of businesses and our cost structure."
Sales revenue for second quarter 2010 was $1.7 billion, a 38 percent increase compared with second quarter 2009 primarily due to higher sales volume and higher selling prices. The higher sales volume was attributed primarily to improved customer demand due to the rebound in the global economy and the positive impact of growth initiatives, and the increase in selling prices was in response to higher raw material and energy costs.
Operating earnings in second quarter 2010 increased to $260 million compared with operating earnings of $128 million in second quarter 2009, excluding restructuring charges, net, in both periods. Operating earnings increased due to higher sales volume and higher capacity utilization which led to lower unit costs.
In addition, higher selling prices more than offset higher raw material and energy costs. Second-quarter 2010 operating earnings were negatively impacted by costs recognized during the quarter related to the previously announced outage at the company's Longview, Texas, manufacturing facility, which were mostly offset by a partial settlement of a related insurance claim.
Fibers – Sales revenue increased by 4 percent due to higher sales volume, particularly for acetate yarn product lines. Operating earnings in second quarter 2010 increased to a quarterly record of $83 million compared with operating earnings of $74 million in second quarter 2009. The increase was due primarily to increased sales volume and higher capacity utilization for acetate yarn product lines.
Performance Chemicals and Intermediates – Sales revenue increased by 72 percent due primarily to higher sales volume and higher selling prices. The higher sales volume, particularly for olefin derivative product lines, was attributed to improved customer demand due to the rebound in the global economy and the addition during the quarter of new plasticizer product lines from the acquisition of Genovique Specialties Corporation.