US Eastman 2Q net earnings rise on higher prices, sales volume

28 July 2011 23:16  [Source: ICIS news]

HOUSTON (ICIS)--US Eastman Chemical posted a 43% year-on-year increase in net earnings in the second quarter on Thursday.

The company earned $211m (€147.7m) in the second quarter, up from $148m in the same period last year. Higher selling prices and sales volume accounted for the increase, the company said.

Sales revenue increased by 27% in the second quarter to $1.9bn, up from $1.5bn in same period of 2010.

The company’s higher prices were in response to rising raw material and energy costs, which were partially offset by cracking propane to produce propylene at low cost, the company said.

Eastman’s higher sales volume was attributed to growth in its performance chemicals segment and strengthened end-market demand primarily in the packaging, transportation and durable goods markets, the company said.

The performance chemicals and intermediates segment had the highest year-on-year increase in sales revenue for the second quarter at 35%.

Higher raw material and energy costs, as well as strengthened demand, allowed Eastman to increase prices in the segment.

The increase in sales volume was due to growth in plasticiser product lines, customer buying patterns for acetyl chemicals and the restart of an idled olefins cracker in Texas.

All the company’s other segments posted increases in second quarter sales revenue as well.

($1 = €0.70)

For more on Eastman Chemical, visit ICIS company intelligence

By: Bobbie Clark
+1 713 525 2653

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