Reported earnings per diluted share in the third quarter of 2014, at producer of speciality chemicals and NYSE-listed - Eastman Chemical Company, slipped 29% year on-year.
“Reported earnings in the third quarter of 2014 stood at $1.39 per diluted share versus $1.97 per diluted share for third quarter of 2013,” Eastman said.
However, Eastman said earnings excluding non-core or non-recurring items reached $1.89 per diluted share for third quarter of 2014 against $1.68 per diluted share, from the prior year quarter.
In the reporting quarter, Eastman sales amounted to $2.4 billion, up 3 percent from the comparable quarter of 2013.
Third-quarter of 2014 reported operating earnings totalled to $338 million, down 29.46 percent compared with $479 million for third quarter of 2013.
Eastman said fibre segment sales fell mainly from lower acetate tow sales volume, offset by higher selling prices and hike in sales of acetate flake to Eastman's China acetate tow joint venture.
It attributed the lower acetate tow sales volume to additional industry capacity including Eastman’s China acetate tow joint venture and relatively flat demand in China.
However, operating earnings in the fibres division were relatively unchanged as higher selling prices and lower raw material and energy costs were offset by lower acetate tow sales volume.
Revenue from advanced materials segment went up due to higher sales volume across the segment’s portfolio of premium products from continued market adoption.
Excluding non-core or non-recurring items in third quarter of 2014, operating earnings increased primarily due to higher sales volume and improved product mix.
Additives & functional products sales increased primarily due to higher coatings products selling prices and higher sales volume attributed to strengthened demand in key end-markets.
However, excluding non-core or non-recurring items, third quarter of 2014 operating earnings of additives segment fell from higher raw material and energy costs, particularly for propane.
Revenue of adhesives & plasticizers division mounted from higher adhesives resins sales volume, due to stronger end-market demand particularly for packaging and hygiene.
Segment operating earnings also increased primarily due to higher sales volume and higher capacity utilization that resulted in lower unit costs for adhesives resins.
In the specialty fluids & intermediates segment, turnover climbed from higher intermediates selling prices, due to decreased industry supply in multiple intermediates product markets.
Eastman generated $560 million in cash from operating activities during third quarter of 2014, driven by strong earnings and also reduced commercial paper borrowings by $211 million.
The speciality chemicals producer now expects 2014 earnings per share to approach $7 and thereby delivering its fifth consecutive year of earnings growth.
It added that non-core and non-recurring items are excluded from the earnings per share projection. (AR)
