Eastman Announces Q2 Results During Pandemic

August 5th, 2020 by Emmariah Holcomb

“As we continue to navigate the impact of the COVID-19 global pandemic, our focus remains on the health and safety of our employees and the operational integrity of our global facilities in order to serve our customers,” said Mark Costa, Eastman CEO and Board Chair, before announcing the company’s second quarter financial results.

According to the company’s financial report, its sales revenue decreased in this year’s second quarter when compared to 2019’s second quarter. “Sales revenue decreased primarily due to lower sales volume and, to a lesser extent, lower selling prices,” a portion of the financial report reads. The decrease, according to the company, was partially offset by higher sales volume for products used in markets including consumables, personal care and wellness, medical and agriculture.

“In this challenging environment, I deeply appreciate the resiliency and determination of our employees, which enabled us to deliver nearly the best free cash flow result for the first half of a year in our history,” said Costa.

Advanced materials sales revenue also decreased, according to the financial report. Eastman notes the decrease is “primarily due to lower sales volume and less favorable product mix.” Lower sales volume was most pronounced for products in markets negatively impacted by COVID-19, especially interlayers, films, and copolyester products sold in transportation and consumer durables end markets, according to the financial report.

“Our sales revenue in the first half of the year was relatively solid, demonstrating the value of a diverse set of end markets and the benefit of our innovation-driven growth model,” said Costa. “We moved swiftly to aggressively manage costs to offset meaningfully lower capacity utilization. We are on track to deliver free cash flow of greater than $1 billion for 2020, and cash flow generation remains our priority given the persistent uncertainty resulting from COVID-19.”

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