Eastman’s profits rises, sees higher demand

Eastman’s profits rises, sees higher demand

12:31 PM, 17th June 2011
Eastman’s profits rises, sees higher demand
Jim Rogers, Chairman and CEO, Eastman.

KINGSPORT, US: Eastman Chemical Company announced earnings from continuing operations of $ 2.52 per diluted share for first quarter 2011 versus $ 1.43 per diluted share for first quarter 2010.

Sales revenue for first quarter 2011 was $ 1.8 billion, a 28 per cent increase compared with first quarter 2010 due to higher sales volume and higher selling prices. The higher sales volume was attributed to strengthened end-use demand primarily in the packaging, transportation and other markets and the positive impact of growth initiatives. The higher selling prices were in response to higher raw material and energy costs and were also attributed to strengthened demand, particularly in the US and tight industry supply.

Operating earnings in first quarter 2011 increased to $ 284 million compared with operating earnings of $ 189 million in first quarter 2010. Operating earnings increased due to higher selling prices and higher sales volume, which more than offset higher raw material and energy costs.

“We continue to demonstrate a new level of earnings performance for the company. We grew volume year over year in every business segment and in every region of the world. Furthermore, we remain well positioned for future growth with our solid balance sheet, which was further strengthened by the cash from the sale of the PET business,” said Jim Rogers, Chairman and CEO, Eastman. 

The coatings, adhesives, specialty polymers and inks, sales revenue increased by 25 per cent due to higher selling prices and higher sales volume. Operating earnings in first quarter 2011 increased to $ 98 million compared with operating earnings of $ 65 million in first quarter 2010.

For the fibres segment, sales revenue increased by 8 per cent primarily due to higher sales volume. Operating earnings in first quarter 2011 increased to $ 81 million compared with $ 78 million in first quarter 2010 due to higher sales volume partially offset by higher raw material and energy costs.

For the performance chemicals and intermediates, sales revenue increased by 44 per cent due to higher sales volume and higher selling prices. Operating earnings in first quarter 2011 increased to $ 88 million compared to $ 35 million in first quarter 2010.

The specialty plastics segmens saw sales revenue increase by 24 per cent primarily due to increased selling prices and higher sales volume. Operating earnings in first quarter 2011 increased to $ 30 million compared with operating earnings of $ 19 million in first quarter 2010.

“We expect the volume growth and higher selling prices momentum to continue. As a result, we expect second quarter 2011 earnings per share to be slightly higher than first quarter 2011 and full year 2011 earnings per share to be slightly higher than $ 9. Key variables include whether inflationary pressures negatively impact global demand and the volatility of raw material and energy costs, particularly the spread between prices for propane and propylene,” commented Rogers, on the outlook for the second quarter and full year 2011.

© WOC News

 

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