01 February 2011 16:25 [Source: ICIS news]
TORONTO (ICIS)--Eastman Chemical expects to increase operating earnings in 2011 but it anticipates higher raw material costs going forward, CEO Jim Rogers said on Tuesday.
Earnings per share from continuing operations for 2011 were expected to be slightly more than 10% above the $5.75/share Eastman achieved in 2010,
“As we begin the year, there are clear signs that the global economy continues to strengthen,” he said.
“We are not just bullish on 2011, we see things down the road for 2012 and 2013, and want to keep this high rate of earnings growth going,”
Eastman Chemical on Monday reported a fourth-quarter net profit of $19m (€14m) on higher sales, 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.
In fibres, operating earnings should increase about 5% from the $326m achieved in 2010. Higher fibre selling prices should “mostly offset” higher energy and raw materials costs, in particular higher wood pulp costs,
The CASPI segment should increase operating earnings by 5-10% this year, compared with the $299m it recorded in 2010.
The segment would benefit from higher volumes and the restart of an Eastman olefins plant in
Eastman PCI’s segment was expected to achieve operating earnings of more than $250m in 2011, compared with $231m in 2010.
The PCI segment would benefit from the olefins restart and tight olefin derivative markets,
Specialty plastics was expected to achieve operating earnings only “slightly higher” than the $93m achieved in 2010.
The specialty plastics segment was facing a “substantial increase” in paraxylene (PX) costs,
“Just in January alone, PX increased 35%, and this is on top of a 25%-increase in the fourth quarter, compared with the third quarter,”
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