US Eastman Q3 earnings hold steady from 2008

22 October 2009 23:36  [Source: ICIS news]

HOUSTON (ICIS news)--US producer Eastman Chemical on Thursday reported third quarter net earnings of $101m (€67m), nearly unchanged from $100m reported from the same time last year.

The slight increase came despite a 28% drop in sales revenue to $1.3bn and a 4% decline in sales volume compared with third-quarter 2008.

Lower costs in raw material and energy offset lower sales volumes, resulting in net earnings that were largely unchanged.

Third-quarter sales revenue was down 18% in the coatings, adhesives, specialty polymers and inks segment; down 5% in the fibres segment; and down 40% for performance chemicals and intermediates.

The company also reported a sales revenue decline of 36% in the performance polymers segment and of 21% in the specialty plastics segment.

Commenting on the outlook for the fourth quarter, CEO Jim Rogers said: “We expect to continue to benefit from a favourable shift in company product mix and cost reduction actions we have taken. However, we also expect volatility in raw material and energy costs and a decline in sales volume due to normal seasonality to negatively impact our fourth quarter results.”

($1 = €0.66)

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By: Landon Feller
+1 713 525 2653

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