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Eastman Chemical expects over 12% EPS growth in 2015
11 Nov '14
2 min read
Producer of speciality chemicals and NYSE listed, Eastman Chemical said it expects to deliver greater than 12 percent EPS growth, from strong organic growth due to acquisition of Taminco.
Alongside, Eastman also expects to generate more than $3 billion in free cash flow from 2015 to 2017, with return-on-invested capital (ROIC) of 12 to 15 percent.
This was revealed by CEO Mark Costa and other senior executives, while discussing the company’s strategy for delivering consistent and superior value to stockholders.
“We have made significant progress positioning the company for sustainable, long-term growth and we remain on track to achieve our fifth consecutive year of earnings growth,” Mark Costa told shareholders.
He added, “We believe we can achieve eight consecutive years of consistent EPS growth with strong free cash flow and attractive return-on-invested-capital with an eight to 12 percent earnings per share compound annual growth rate.
“In 2015, we expect to deliver greater than 12 percent EPS growth as we add to our strong organic growth with accretion from the Taminco acquisition,” he informed.
According to CFO Curt Espeland, Eastman expects to generate more than $3 billion in free cash flow from 2015 to 2017 with return-on-invested capital (ROIC) of 12 to 15 percent.
He said capital deployment will remain disciplined and balanced among capital expenditures, joint ventures and acquisitions, and returning cash to stockholders.
He also reiterated the company’s commitment to maintaining its investment-grade credit rating.
Eastman Chemicals has increased its dividend for three consecutive years and expects continued dividend increases as earnings grow.
Espeland affirmed that the Taminco acquisition is expected to close in 2014 and expects cost, operational and revenue synergies totalling to around five percent of Taminco’s sales revenue.
Eastman has operations in approximately 100 countries and had 2013 revenues of $9.4 billion. Headquartered in Tennessee, USA, Eastman employs around 14,000 people around the world. (AR)
Alongside, Eastman also expects to generate more than $3 billion in free cash flow from 2015 to 2017, with return-on-invested capital (ROIC) of 12 to 15 percent.
This was revealed by CEO Mark Costa and other senior executives, while discussing the company’s strategy for delivering consistent and superior value to stockholders.
“We have made significant progress positioning the company for sustainable, long-term growth and we remain on track to achieve our fifth consecutive year of earnings growth,” Mark Costa told shareholders.
He added, “We believe we can achieve eight consecutive years of consistent EPS growth with strong free cash flow and attractive return-on-invested-capital with an eight to 12 percent earnings per share compound annual growth rate.
“In 2015, we expect to deliver greater than 12 percent EPS growth as we add to our strong organic growth with accretion from the Taminco acquisition,” he informed.
According to CFO Curt Espeland, Eastman expects to generate more than $3 billion in free cash flow from 2015 to 2017 with return-on-invested capital (ROIC) of 12 to 15 percent.
He said capital deployment will remain disciplined and balanced among capital expenditures, joint ventures and acquisitions, and returning cash to stockholders.
He also reiterated the company’s commitment to maintaining its investment-grade credit rating.
Eastman Chemicals has increased its dividend for three consecutive years and expects continued dividend increases as earnings grow.
Espeland affirmed that the Taminco acquisition is expected to close in 2014 and expects cost, operational and revenue synergies totalling to around five percent of Taminco’s sales revenue.
Eastman has operations in approximately 100 countries and had 2013 revenues of $9.4 billion. Headquartered in Tennessee, USA, Eastman employs around 14,000 people around the world. (AR)
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