Revenue for the three months to June 30, 2015 at speciality chemicals producer Eastman Chemical Company rose 3 per cent year over year.
“Revenue for the second quarter of 2015 amounted to $2.5 billion, up 3 per cent over the same period of previous year,” a press release from Eastman Chemical said.
“The sales growth primarily came from revenue from Taminco Corporation, Commonwealth Laminating & Coating Inc., and aviation turbine oil businesses acquired in 2014,” it added.
This was partially offset by lower selling prices, particularly in the specialty fluids & intermediates segment, lower fibres segment sales volume, and an unfavourable shift in foreign currency exchange rates.
Second-quarter of 2015 operating earnings touched $480 million, down from $441 million in the second quarter of 2014.
“The increase was primarily due to advanced materials segment earnings growth, earnings from acquired businesses, and improved spread,” Eastman explained.
These items were partially offset by propane hedges, lower fibre segment sales volume, and also an unfavourable shift in foreign currency exchange rates.
Reported second-quarter of 2015 operating earnings stood at $469 million as against $436 million for the corresponding quarter of the previous year.
Eastman reported earnings, excluding non-core items, of $2.01 per diluted share for the quarter under review versus $1.92 per diluted share for second quarter of 2014.
Reported earnings were $1.98 per diluted share for the reporting quarter versus $1.92 per diluted share for the prior year second quarter.
Eastman generated $591 million in cash from operating activities during the reporting quarter primarily due to strong net earnings.
Priorities for uses of available cash include payment of the quarterly dividend, repayment of debt, and funding targeted growth initiatives.
“Net debt, defined as borrowings minus cash and cash equivalents, declined by $393 million during the second quarter of 2015,” it informed.
“Our record results in second quarter demonstrate the quality of our robust specialty portfolio, the value of acquisitions, and our ability to focus on execution and deliver results,” CEO Mark Costa said.
“We remain confident we will deliver our sixth consecutive year of solid earnings growth in 2015,” Costa too added by saying.
On its outlook for full year 2015, Costa also said, “We face challenges in the second half of the year from the global economic slowdown, volatile raw material and energy prices, and the strengthening US dollar.”
“Despite these challenges, we remain confident that we will deliver a sixth consecutive year of solid earnings growth and continued strong cash flow,” he observed.
