US Eastman Q3 income falls on lower sales

HOUSTON (ICIS)–US specialty chemicals producer Eastman reported a lower net income because sales fell faster than costs.

The following shows the company’s Q3 performance. Figures are in millions of dollars.

$m	Q320	Q319	%
Sales	2,122	2,325	-8.7
Cost of sales	1,621	1,751	-7.4
Gross profit	501	574	-12.7
Net income	161	266	-39.5

Source: Eastman

Sales fell because of lower volumes and prices.

The decline in volumes was one of the reasons why utilisation rates fell. Another reason behind the decline was inventory management that took place in the second quarter.

Although sales fell year on year, they rose quarter on quarter because demand increased across most of the company’s end markets. Volumes for products rose significantly for those end markets hit hard by the coronavirus. Those include transportation, building and construction and consumer durables.

Some moderation took place among end markets that saw a surge in demand. Those include consumables, personal care and medical, Eastman said.

Eastman makes acetyls, oxo-alcohols, glycol ethers, plasticizers, pine chemicals, acetate tow and polyesters.

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