31 January 2011 23:00 [Source: ICIS news]
Sales were $1.46bn, up 23% from $1.19bn in the 2009 fourth quarter.
Eastman credited higher sales volumes to strengthened end-use demand in packaging and durable goods, as well as the positive impact of growth initiatives.
The company also cited increased selling prices, in response to higher raw material and energy costs.
By segment, sales in performance chemicals and intermediates registered the largest proportional increase of 31% to $526m.
The higher volumes were primarily caused by strengthened demand in
Meanwhile, sales revenue in the specialty plastics segment grew 26% to $258m, as stronger end-market demand and increased raw material costs for chemicals such as paraxylene (PX) allowed Eastman to raise selling prices, it said.
In other segments, sales grew 16% within coatings, adhesives, specialty polymers and inks, and by 18% within fibres.
For the full-year 2010, Eastman reported sales of $5.84bn - higher by 33% from 2009. Net earnings were $438m, more than triple the $136m earned in 2009.
“The strength of our portfolio of businesses was clearly demonstrated throughout 2010,” said chief executive Jim Rogers.
“We’ve established a new level of earnings performance for the company, and we are continuing our efforts to build upon these earnings,” he added.
Looking ahead, Eastman said it began 2011 with a strengthening global economy and expected benefits from the restart of a cracking unit, allowing it to project first-quarter earnings per share from continuing operations to be between $1.75-1.85/share.
Following the earnings release, Eastman’s stock gained $1.14, or 1.2%, to $94.00/share in after-hours electronic trading on the New York Stock Exchange.
($1 = €0.74)
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