Producer of speciality chemicals and NYSE listed, Eastman, has announced that the Company’s Board of Directors has approved a quarterly dividend for holders of the Company’s common shares in the amount of $0.40 per common share, with an increase of 14 per cent. The dividend will be paid on January 2, 2015 to shareholders of record at the close of business on December 15, 2014.
Curt Espeland, executive vice president and chief financial officer for Eastman said, “This increase marks the fifth consecutive year that we have increased the dividend. This is consistent with our commitment to grow our dividend as the company grows, and to deploy capital in a balanced and disciplined way. It is also further demonstration of the Board’s confidence in Eastman to continue generating earnings growth and strong free cash flows.”
Earlier, the company said it expects to deliver greater than 12 per cent EPS growth from strong organic growth. Eastman also expects to generate more than $3 billion in free cash flow from 2015 to 2017, with return-on-invested capital (ROIC) of 12 to 15 per cent.
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. In the reporting quarter, Eastman Chemical sales amounted to $2.4 billion, up 3 per cent from the comparable quarter of 2013.
Third-quarter of 2014 reported operating earnings totaled to $338 million, down 29.46 per cent compared with $479 million for third quarter of 2013. 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.
Eastman has operations in approximately 100 countries and had 2013 revenues of $9.4 billion. Headquartered in Tennessee, USA, Eastman employs around 14,000 people around the world. (GK)
