) profit slipped in first-quarter 2014 as modest gains across its
Additives and Functional Products and Fibres divisions were
offset by declines in Advanced Materials and Specialty Fluids and
Intermediates units. Higher impairment and restructuring charges
also weighed on the bottom line in the reported quarter.
The TN-based chemical maker logged profit (as reported) of $233
million or $1.52 per share in the quarter, a 5.7% fall from $247
million or $1.57 per share recorded a year ago.
Earnings, excluding integration charges related to Solutia
acquisition and impairment and restructuring costs, were $1.61
per share in the reported quarter, beating the Zacks Consensus
Estimate by a penny while falling short of the year-ago adjusted
earnings of $1.62 per share.
Eastman Chemical Company - Quarterly Earnings
Per Share | FindTheBest
Revenues and Margins
Revenues edged down roughly 0.1% year over year to $2,305
million, missing the Zacks Consensus Estimate of $2,403 million.
The company saw tepid sales performances across the board in the
The results were mixed across geographic regions. Revenues from
the U.S. and Canada clipped 0.7% year over year to $1,073
million. Sales from Asia-Pacific inched up 1% to $601 million.
Europe, Middle East and Africa (EMEA) recorded a 0.2% rise in
sales to $514 million while Latin American revenues edged down
0.8% to $117 million.
Operating earnings (excluding the non-core or non-recurring
items) were $383 million in quarter, down 5% from $403 million a
year ago, hurt by lower earnings in the Specialty Fluids and
Revenues from the Additives and Functional Products division
edged up 1% year over year to $423 million in the reported
quarter. Higher coatings sales volumes on healthy demand in
building and construction and transportation markets were offset
by lower volume for rubber additives due to customer inventory
destocking in Asia Pacific.
Adhesives and Plasticizers segment sales were flat at $345
million as higher volume for adhesives resins on strong demand
for hygiene and packaging was offset by lower pricing in
adhesives resins and plasticizers due to competitive pressure.
Revenues from the Advanced Materials unit slipped 1% to $581
million as lower sales volume for performance films offset
increased volume for Eastman Tritan copolyester and premium
Fibers segment sales rose 2% to $354 million as higher pricing
more than offset lower sales volume for acetate tow. Volume was
affected by customer buying patterns and added industry capacity
including the company's China acetate tow joint venture.
Revenues from the Specialty Fluids and Intermediates division
edged down 1% to $601 million as lower volumes more than offset
an increase in selling prices.
Eastman Chemical ended the quarter with cash and cash equivalents
of $185 million, up 4% year over year. Long-term debt fell 3%
year over year to $4,635 million. Eastman Chemical repurchased
shares worth $260 million during the quarter.
Looking ahead, Eastman Chemical sees higher sales in the
remaining three quarters of 2014. The company expects to gain
from specific actions that it has taken up to increase earnings
as well as balanced deployment of strong cash flow for the
balance of 2014.
Eastman Chemical reaffirmed its earnings guidance for 2014 and
continues to expect earnings per share to be between $6.70 and
$7.00 (excluding non core and non-recurring items).
Eastman Chemical is a Zacks Rank #4 (Sell) stock.
Some better-ranked chemical stocks include
LyondellBasell Industries NV
) with all retaining a Zacks Rank #2 (Buy).
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