US Eastman swings to $19m Q4 profit on higher sales

31 January 2011 23:00  [Source: ICIS news]

HOUSTON (ICIS)--US specialty chemicals producer Eastman Chemical swung to a fourth-quarter net profit of $19m (€14.1m) on higher sales, it said on Monday, up from a $32m net loss in the year-earlier period.

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 North America and Asia Pacific, particularly for olefin-derivative product lines and plasticizers, the company said.

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)

For more on Eastman Chemical visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Ben DuBose
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly