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Eastman Chemical Q1 earnings rise

25 Apr '08

3 min read

Sales revenue for first quarter 2008 was $1.7 billion, a 6 percent increase over first quarter 2007. Sales revenue for both first quarter 2008 and first quarter 2007 included contract ethylene sales resulting from the fourth-quarter 2006 divestiture of the polyethylene business.

Also included in first-quarter 2008 sales revenue was contract polymer intermediates sales resulting from the fourth-quarter 2007 divestiture of PET polymers manufacturing facilities and related businesses in Mexico and Argentina.

First-quarter 2007 sales revenue included sales from the divested Mexico and Argentina PET manufacturing facilities. Excluding these items for both periods, sales revenue increased by 9 percent as higher selling prices more than offset a decline in sales volume of 2 percent.

For reconciliations to reported company and segment sales revenue, see Tables 4 and 5 in the accompanying first-quarter 2008 financial tables.

Operating earnings in first quarter 2008 were $168 million compared with operating earnings of $154 million in first quarter 2007.

Excluding asset impairments and restructuring charges in first quarter 2008 and accelerated depreciation costs in both periods, operating earnings were $187 million in first quarter 2008 compared with $168 million in first quarter 2007.

The increase was due to improved operating results in the Performance Polymers and Fibers segments. The company's first-quarter 2008 raw material and energy costs increased by greater than $150 million compared with first quarter 2007.

Segment Results 1Q 2008 versus 1Q 2007:
Coatings, Adhesives, Specialty Polymers and Inks – Sales revenue increased by 13 percent primarily due to higher selling prices in response to higher raw material and energy costs and the favorable euro versus the U.S. dollar exchange rate.

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Eastman Chemical Company

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