Eastman expects higher growth earnings

Eastman expects higher growth earnings

3:55 PM, 7th June 2011
Eastman expects higher growth earnings
James P Rogers, Chairman and CEO, Eastman Chemical.

  • Expects $10 EPS in 2013, greater than 10 per cent EPS growth rate through 2013
  • Increased first-quarter and full-year 2011 EPS guidance to approaching $ 2 and approaching $ 8, respectively
  • Announced joint venture to construct acetate tow facility in China

 

KINGSPORT, US: At its 2011 Investor day, Eastman Chemical Company increased its expectation for 2011 earnings per share to approaching $ 8 and increased its first-quarter 2011 earnings per share expectation to approaching $ 2. In addition, the company expects the compound annual growth rate of its earnings per share from 2010 through 2013 to be greater than 10 per cent. In 2013, the company expects earnings per share to approach $ 10 per share.

 

“The strategic shift we have made has led to an improvement in the company’s portfolio and has resulted in greater strength in our core businesses. In 2010, we demonstrated a new level of earnings performance and we are expecting to build on that going forward. Even before putting our strong balance sheet to work, we project significant earnings per share growth through 2013 and beyond,” said James P Rogers, Chairman and CEO, Eastman Chemical. 

 

Eastman has positioned its coatings, adhesives, specialty polymers, and inks (CASPI) segment to deliver sustainable earnings growth over the next several years, including an operating margin expected to be between 17 and 20 per cent. The specialty plastics segment is expected to increase operating earnings by more than 50 per cent in 2013 compared with 2010, with an operating margin between 10 and 15 per cent. The fibres segment will continue to provide solid earnings for Eastman. The segment, which generated more than three-quarters of its revenue from outside North America, reported year-over-year earnings growth in 2010 for the sixth year since 2004.

 

The company expects to strengthen its strategic position in Asia Pacific with the new South Korea fibre manufacturing facility. In addition, Eastman announced plans for a new 30,000 metric ton acetate tow plant in Heifei, China, expected to be operational in mid-2013 in a joint venture with China National Tobacco Corporation. The company also announced breakthrough acetylated wood technology, with an estimated addressable market of over $ 2 billion.

© WOC News

 

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