US Eastman net income falls 18.6% in second quarter year on year

30 July 2012 23:24  [Source: ICIS news]

HOUSTON (ICIS)--US Eastman’s second-quarter net income declined 18.6% year on year, the company reported on Monday.

Net income totalled $179m (€145m) compared with $220m in the same quarter of 2011.

Eastman’s sales fell slightly to $1.85bn from $1.89bn in the second quarter of 2011. The company’s expenses also slipped to $1.37bn from $1.41bn in the same period a year ago, leaving a gross profit of $481m.

The gross profit from the second quarter of 2011 totalled $474m.

Eastman’s coatings, adhesives, specialty polymers and inks segment had sales of $486m in the second quarter, down slightly from $491m in the second quarter of 2011.

The fibres segment sales fell to $318m from $331m. The specialty plastics segment also had a decrease in sales, falling to $315m from $334m a year ago.

Performance chemicals and intermediates was the only segment to post an increase, rising to $732m from $729m in the second quarter of 2011.

Also in the second quarter, Eastman completed its acquisition of specialty chemicals firm Solutia.

Eastman reported Solutia’s net income was $31m, including $15m of acquisition related expenses. Solutia’s income was down 54% from $68m in the second quarter of 2011.

“Sales revenue for Solutia in second quarter 2012 was $520m, a 4% decline compared with second quarter 2011, due primarily to the strengthening of the US dollar versus the euro,” Eastman said. “In addition, slightly higher sales volume in the technical specialties and performance films segments was more than offset by lower sales volume in the Advanced Interlayers segment.”

($1 = €0.81)

By: Bobbie Clark
+1 713 525 2653

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