26 January 2012 23:41 [Source: ICIS news]
HOUSTON (ICIS)--Net earnings for US-based Eastman Chemical surged in the fourth quarter because it had fewer one-time charges, the specialty chemicals company said on Thursday.
Eastman reported $100m (€76m) in the fourth quarter, up from $19m in the same period of 2010.
However, the company reported a charge of $115m in the 2010 fourth quarter for early debt extinguishment costs.
Sales revenue for fourth quarter 2011 was $1.7bn, compared with fourth quarter 2010, when it was $1.5bn.
Cost of sales for the company for the quarter was $1.4bn, compared with $1.1bn in the same period of 2010.
Because costs grew faster than sales, gross profit actually decreased to $324m from $351m in the fourth quarter of 2010.
“The increase in selling prices was in response to higher raw material and energy costs, particularly for paraxylene, propane and wood pulp,” the company said. “The higher sales volume was primarily in the performance chemicals and intermediates segment.”
Earnings for all of 2011 totalled $696m, up from $438m in 2010, the company said.
Eastman stock ended Thursday at $47.12/share, up 0.4% from the previous day.
For more on Eastman visit ICIS company intelligence
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