Eastman Reports Third-Quarter Growth

November 4th, 2015 by Editor

Eastman Chemical Co., parent company to LLumar, Suntek and other window film brands, recently announced its earnings for the third quarter.

“Our solid third-quarter earnings once again demonstrate the quality and value of our portfolio transformation to specialty market and product positions,” says Mark Costa, chairman and CEO. “The combination of volume growth in specialty businesses, mix upgrade from growth of high value, innovative products, accretion from high quality, specialty acquisitions, and disciplined cost management offset declining olefin prices and a strong U.S. dollar. We remain confident that we will deliver our sixth consecutive year of earnings growth in 2015.”

Sales revenue for third quarter 2015 was $2.4 billion, a 1 percent increase compared with third quarter 2014, primarily due to sales revenue from the Taminco Corp. and Commonwealth Laminating & Coating, Inc. businesses acquired in 2014.

Sales revenue in the advanced materials segment, under which window film falls, increased primarily due to sales of products of the acquired Commonwealth performance films business and increased sales volume and improved product mix. This was partially offset by an unfavorable shift in foreign currency exchange rates and lower selling prices, primarily for copolyesters, due to lower raw material and energy costs, according to the report.

Excluding non-core items in both periods, operating earnings increased to $116 million for third quarter 2015 in this segment, compared with $80 million for third quarter 2014. This is due to lower raw material and energy costs, higher sales volume and improved product mix, and earnings from the acquired business, which was partially offset by lower selling prices and an unfavorable shift in foreign currency exchange rates.

“Our strong earnings through the first nine months of 2015 reflect solid performance in our specialty businesses, including strong volume growth and product mix improvement, as well as the benefit of the accretive acquisitions we completed in 2014 and disciplined cost management,” says Costa. “We also continue to face challenges from slow global economic growth, lower olefin prices and the strong U.S. dollar. Despite these challenges, we remain confident we will deliver a sixth consecutive year of earnings growth and continued strong cash flow.”

Tags: , , ,

One comment
Leave a comment »

  1. Very impressive, keep up the hard work . Leon Levy Klingshield South Africa.

Leave Comment