25 October 2012 23:34 [Source: ICIS news]
HOUSTON (ICIS)--Third-quarter net earnings for Eastman Chemical fell by more than 11% year-on-year amid an increase in sales costs and other expenses, the US-based plasticizers, adhesives and additives producer said on Thursday.
Third-quarter net earnings dropped to $154m (€119m) from $174m in the same quarter last year, Eastman said.
Sales jumped $2.3bn from $1.8bn in the same period, largely as a result of Eastman’s $4.8bn acquisition of specialty chemicals producer Solutia, the company said.
The cost of sales, however, increased to $1.7bn from $1.4bn in the same period, while selling, general and administrative expenses jumped to $173m from $114m. Asset impairment and restructuring charges increased to $37m from $7m.
Third-quarter operating earnings decreased to $263m from $271m in the same quarter last year.
Operating earnings increased for the company’s additives and functional products, adhesives and plastizers, and specialty fluids and intermediates businesses.
Operating earnings fell for Eastman’s advanced materials line, and were flat for its fibres business.
Looking to the fourth quarter, Eastman CEO Jim Rogers said, ““The global economic environment remains challenging as we enter the seasonally slower fourth-quarter. We also anticipate higher raw material and energy costs toward the end of the year.
“However, given our current outlook of a stable economy we expect our business will continue to demonstrate strength as it has throughout the year,” he continued. “We are therefore raising our full year 2012 expectation slightly to earnings per share of between $5.30 and $5.40.”
($1 = €0.77)
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