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Eastman Announces Second-Quarter 2017 Financial Results
(GLOBE NEWSWIRE via COMTEX) -- Copyright (C) 2017 GLOBE NEWSWIRE. All rights reserved.



KINGSPORT, Tenn., July 27, 2017 - Eastman Chemical Company (NYSE:EMN) today announced reported earnings of $2.00 per diluted share for second quarter 2017 versus $1.71 per diluted share for second quarter 2016. Adjusted earnings were $1.98 per diluted share for second quarter 2017 versus $1.68 per diluted share for second quarter 2016. For detail of the adjustments and reconciliation to reported company and segment earnings for all periods presented, see Tables 3A and 4A.

"We delivered 18 percent year-over-year growth in adjusted EPS demonstrating the robustness of our portfolio, the strength of our transformation and the value of our integration," said Mark Costa, Board Chair and CEO. "Our innovation-led strategy resulted in strong revenue growth driven by continued volume growth in our specialty businesses, and we increased selling prices in our intermediates business. We continue to demonstrate the strength of our portfolio in this slow growth global economy, and remain confident in the sustainability of our strong cash flows."

(In millions, except per share amounts) 2Q2017 2Q2016

Sales revenue $2,419 $2,297

Operating earnings $420 $376

Earnings per diluted share $2.00 $1.71


Adjusted earnings per diluted share* $1.98 $1.68

Net cash provided by operating activities $431 $494

*For adjusted provision for income taxes in 2Q 2017 and reconciliation to reported company earnings, see Table 4A.

Segment Results 2Q 2017 versus 2Q 2016

Additives & Functional Products - Sales revenue increased due to higher sales volume and higher selling prices for most product lines. Operating earnings declined as higher raw material and energy costs more than offset the impact of higher sales volume and higher selling prices.


Advanced Materials - Sales revenue increased due to higher sales volume across the segment, including premium products such as Eastman TritanTM copolyester, Saflex(R) acoustic interlayers, and performance films. Operating earnings increased primarily due to higher sales volume and fixed cost leverage, partially offset by higher raw material and energy costs.

Chemical Intermediates - Sales revenue increased due to higher selling prices attributed to higher raw material prices and continued improvement in competitive conditions. Operating earnings increased primarily due to higher selling prices, lower commodity hedge levels, and lower scheduled maintenance costs, partially offset by higher raw material and energy costs.

Fibers - Sales revenue decreased primarily due to lower selling prices, particularly for acetate tow, attributed to lower industry capacity utilization rates. Operating earnings declined due to lower selling prices, partially offset by lower operating costs resulting from recent actions.

Cash Flow

Eastman generated $431 million in cash from operating activities during second quarter 2017, primarily due to strong net earnings partially offset by increased working capital. Share repurchases totaled $100 million in second quarter 2017. Priorities for uses of available cash include payment of the quarterly dividend, repayment of debt, funding targeted growth initiatives, and repurchasing shares.

Outlook


Commenting on the outlook for full-year 2017, Costa said: "During the first half of the year, we delivered strong EPS growth, and we expect our innovative, high margin products to continue to drive compelling growth in what remains an uncertain global business environment. Disciplined cost management and capital allocation are also expected to continue contributing to earnings growth, helping to offset challenges in Fibers and ethylene prices. Given the strength of our first half results and our confidence in the actions we are taking to deliver growth despite the challenges we face, our expectations for adjusted 2017 EPS growth have improved to 10-12 percent compared with 2016 versus the previous 8-12 percent."

The full-year 2017 projected earnings exclude any non-core, unusual, or non-recurring items in the remaining six months of 2017 and assumes that the adjusted tax rate detailed in Tables 4A and 4B for first six months 2017 will be the actual rate for full-year 2017. Our 2017 financial results forecasts do not include non-core items (such as mark-to-market pension and other postretirement benefit gain or loss) or any unusual or non-recurring items, and we accordingly are unable to reconcile projected full-year 2017 earnings excluding non-core and any unusual or non-recurring items to reported GAAP earnings without unreasonable efforts.

Forward-Looking Statements

This news release includes forward-looking statements concerning current expectations and assumptions for future global economic conditions; competitive position and acceptance of specialty products in key markets; mix of products sold; raw material and energy prices and costs, and other costs; and revenue, earnings, and cash flow for full-year 2017. Such expectations and assumptions are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations and assumptions expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are and will be detailed in the company's filings with the Securities and Exchange Commission, including the Form 10-Q filed for first quarter 2017 available, and the Form 10-Q to be filed for second quarter 2017 and to be available, on the Eastman web site at www.eastman.com in the Investors, SEC filings section.

Conference Call and Webcast Information

Eastman will host a conference call with industry analysts on July 28, 2017 at 8:00 a.m. ET. To listen to the live webcast of the conference call and view the accompanying slides, go to www.investors.eastman.com, Events & Presentations. To listen via telephone, the dial-in number is 719-325-2213, passcode number 7395643. A web replay, a replay in downloadable MP3 format, and the accompanying slides will be available at www.investors.eastman.com, Events & Presentations. A telephone replay will be available continuously from 11:00 a.m. ET, July 28 to 11:00 a.m. ET, August 7 at 888-203-1112 or 719-457-0820, passcode 7395643.

Eastman is a global advanced materials and specialty additives company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries and had 2016 revenues of approximately $9.0 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,000 people around the world. For more information, visit www.eastman.com.

# # #

Contacts:

Media: Tracy Kilgore Addington

423-224-0498 / tracy@eastman.com

Investors: Greg Riddle

212-835-1620 / griddle@eastman.com

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Eastman Chemical Company via Globenewswire

ex99_01 2017.06.30 CC Tables FINAL - http://hugin.info/150386/R/2123856/810279.pdf


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