Eastman Chemical Company announced earnings of $0.91 per diluted share for first quarter 2007 versus earnings of $1.27 per diluted share for first quarter 2006.
Excluding the items described in the following paragraph, first-quarter 2007 earnings were $1.19 per diluted share, while first-quarter 2006 earnings were $1.36 per diluted share. For reconciliations to reported company and segment earnings.
Included in the results for first quarter 2007 were accelerated depreciation costs of $14 million resulting from continuing restructuring actions at the company's Longview, Texas, and Columbia, S.C, facilities and asset impairments and restructuring charges of $21 million primarily related to the recently announced divestiture of the company's San Roque, Spain, PET facility. First quarter 2006 results included asset impairments and restructuring charges of $7 million.
"Operating earnings for the company remained strong year over year with the exception of our PET business," said Brian Ferguson, chairman and CEO. "We continue to make good progress offsetting high and volatile raw material and energy costs, and we remain confident the actions being taken with our PET business will substantially improve results in the Performance Polymers segment."
Sales revenue for first quarter 2007 was $1.8 billion, flat compared with first quarter 2006. First quarter 2007 results included contract ethylene sales resulting from the divestiture of the polyethylene business while first quarter 2006 results included sales from divested product lines.
Excluding the contract ethylene sales and sales from the divested product lines, sales revenue increased by 10 percent due to higher sales volume of 5 percent and higher selling prices. For reconciliations to reported company and segment sales revenue.
Operating earnings in first quarter 2007 were $135 million compared with operating earnings of $184 million in first quarter 2006. Excluding accelerated depreciation from first quarter 2007 and asset impairments and restructuring charges from both first quarter 2007 and first quarter 2006, operating earnings were $170 million in first quarter 2007 compared with $191 million in first quarter 2006.
The decline was due primarily to lower operating results in the Performance Polymers segment. The company's first-quarter 2007 raw material and energy costs increased by approximately $50 million compared with first quarter 2006.
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