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Eastman posts strong sales & earnings for Q4
27 Jan '12
5 min read
Operating earnings for full year 2011 were $1,021 million compared to operating earnings of $862 million for full year 2010. Excluding asset impairments and restructuring charges and gains, net, in both periods, full-year 2011 operating earnings were $1,013 million and full-year 2010 operating earnings were $891 million.
Coatings, Adhesives, Specialty Polymers and Inks – Sales revenue increased by 17 percent primarily due to higher selling prices and higher sales volume. The higher selling prices were in response to higher raw material and energy costs and were also attributed to strengthened demand, particularly in the U.S., and tight industry supply particularly in the first half of the year.
Fibers – Sales revenue increased by 12 percent primarily due to a favorable shift in product mix, higher selling prices, and higher sales volume. The favorable shift in product mix was mainly due to higher acetate tow sales volume resulting from increased utilization of the acetate tow manufacturing facility in Korea. The higher selling prices were in response to higher raw material and energy costs, particularly for wood pulp. 2011 operating earnings were $346 million compared with 2010 operating earnings of $326 million excluding restructuring charges. The increase was primarily due to higher acetate tow sales volume in Asia Pacific and Europe and higher selling prices, partially offset by higher raw material and energy costs.
Commenting on the outlook for first quarter and full year 2012, Rogers said: "We enter 2012 with our businesses well positioned to continue delivering strong results and expected benefits from recent capacity additions as well as the Sterling and Scandiflex acquisitions. While there is continued economic uncertainty, we are expecting economic activity to accelerate in the second half of the year compared with the first half, particularly in the Asia Pacific and North American regions.”
“In addition, olefins margins appear to be improving so that we expect that producing versus buying olefins will become a tailwind for 2012. We also face headwinds from anticipated volatility in raw material and energy costs and higher pension expense. As a result, we expect first-quarter 2012 earnings from continuing operations to be between $1.05 and $1.15 per share and we expect earnings per share from continuing operations in 2012 to be above 2011 earnings per share from continuing operations of $4.56. And our solid balance sheet and expectation for continued strong cash generation positions us for further earnings growth." Asset impairments and restructuring charges are excluded from earnings per share projections.
Coatings, Adhesives, Specialty Polymers and Inks – Sales revenue increased by 17 percent primarily due to higher selling prices and higher sales volume. The higher selling prices were in response to higher raw material and energy costs and were also attributed to strengthened demand, particularly in the U.S., and tight industry supply particularly in the first half of the year.
Fibers – Sales revenue increased by 12 percent primarily due to a favorable shift in product mix, higher selling prices, and higher sales volume. The favorable shift in product mix was mainly due to higher acetate tow sales volume resulting from increased utilization of the acetate tow manufacturing facility in Korea. The higher selling prices were in response to higher raw material and energy costs, particularly for wood pulp. 2011 operating earnings were $346 million compared with 2010 operating earnings of $326 million excluding restructuring charges. The increase was primarily due to higher acetate tow sales volume in Asia Pacific and Europe and higher selling prices, partially offset by higher raw material and energy costs.
Commenting on the outlook for first quarter and full year 2012, Rogers said: "We enter 2012 with our businesses well positioned to continue delivering strong results and expected benefits from recent capacity additions as well as the Sterling and Scandiflex acquisitions. While there is continued economic uncertainty, we are expecting economic activity to accelerate in the second half of the year compared with the first half, particularly in the Asia Pacific and North American regions.”
“In addition, olefins margins appear to be improving so that we expect that producing versus buying olefins will become a tailwind for 2012. We also face headwinds from anticipated volatility in raw material and energy costs and higher pension expense. As a result, we expect first-quarter 2012 earnings from continuing operations to be between $1.05 and $1.15 per share and we expect earnings per share from continuing operations in 2012 to be above 2011 earnings per share from continuing operations of $4.56. And our solid balance sheet and expectation for continued strong cash generation positions us for further earnings growth." Asset impairments and restructuring charges are excluded from earnings per share projections.
Eastman Chemical Company
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