Eastman Chemical Company announced earnings from continuing operations of $0.71 per diluted share for fourth quarter 2011 versus $0.11 per diluted share for fourth quarter 2010. Excluding $26 million of asset impairments and restructuring charges and $115 million of early debt extinguishment costs, fourth-quarter 2010 earnings from continuing operations were $0.70 per diluted share.
"Despite a challenging and uncertain economic environment during the quarter, we delivered earnings per share that are among our best for a fourth quarter, and our full-year EPS was the best in our history," said Jim Rogers, Chairman and CEO. "Given the strength of our businesses and our solid balance sheet, we remain well positioned for full-year 2012 EPS growth."
Sales revenue for fourth quarter 2011 was $1.7 billion, an 18 percent increase compared to fourth quarter 2010 primarily due to increased selling prices and higher sales volume. The increase in selling prices was in response to higher raw material and energy costs, particularly for paraxylene, propane, and wood pulp. The higher sales volume was primarily in the Performance Chemicals and Intermediates segment.
Operating earnings in fourth quarter 2011 were $163 million compared to $161 million in fourth quarter 2010. Excluding asset impairments and restructuring charges, fourth-quarter 2010 operating earnings were $187 million. Operating earnings declined, excluding fourth quarter 2010 asset impairments and restructuring charges, primarily in the Specialty Plastics and PCI segments.
Coatings, Adhesives, Specialty Polymers and Inks – Sales revenue increased by 12 percent primarily due to higher selling prices which were in response to higher raw material and energy costs, particularly for propane. Operating earnings in fourth quarter 2011 were $52 million while fourth-quarter 2010 operating earnings excluding restructuring charges were $53 million. Operating earnings were slightly lower as higher raw material and energy costs were mostly offset by higher selling prices.
Fibers – Sales revenue increased by 8 percent primarily due to higher selling prices in response to higher raw material and energy costs, particularly for wood pulp, as well as higher acetate tow volume in Asia Pacific. Fourth-quarter 2011 operating earnings were $80 million while fourth-quarter 2010 operating earnings excluding restructuring charges were $78 million. Operating earnings in fourth quarter 2011 increased due to higher acetate tow sales volume and higher selling prices, partially offset by higher raw material and energy costs.
Eastman's full-year 2011 sales revenue was $7.2 billion, an increase of 23 percent year over year. The increase was primarily due to increased selling prices and higher sales volume. Selling prices increased in response to higher raw material and energy costs, primarily for propane, paraxylene, and wood pulp. The higher sales volume was primarily dueto growth in PCI plasticizer product lines, the fourth-quarter 2010 restart of a previously idled olefins cracking unit at the Longview, Texas, facility, and strengthened end-use demand primarily for CASPI segment products.
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