Eastman Announces Third-Quarter 2024 Financial Results
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- Strong year-over-year sales volume/mix growth with improvement in all operating segments
- Adjusted EBIT margin increased 360 basis points compared to last year through volume/mix growth, operating leverage, and commercial excellence
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Continued to make good progress on
Kingsport methanolysis operations and the build of our sales funnel for 2025 -
Made investment decision to move forward with the
Longview, Texas , methanolysis facility -
Returned
$195 million of cash to shareholders, including$100 million of share repurchases
(In millions, except per share amounts; unaudited) |
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3Q24 |
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3Q23 |
Sales revenue |
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|
$ |
2,464 |
$ |
2,267 |
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||
Earnings before interest and taxes (“EBIT”) |
|
|
|
329 |
|
256 |
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Adjusted EBIT* |
|
|
|
366 |
|
256 |
Earnings per diluted share |
|
|
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1.53 |
|
1.49 |
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Adjusted earnings per diluted share* |
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|
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2.26 |
|
1.47 |
Net cash provided by operating activities |
|
|
|
396 |
|
514 |
*For non-core and unusual items excluded from adjusted earnings and for adjusted provision for income taxes, segment adjusted EBIT margins, and net debt, reconciliations to reported company and segment earnings and total borrowings for all periods presented in this release, see Tables 3A, 3B, 4A, and 6.
“Our third-quarter results were driven by strong sales volume/mix growth, operating leverage, and continued commercial excellence,” said
Corporate Results 3Q 2024 versus 3Q 2023
Sales revenue increased 9 percent primarily due to 8 percent higher sales volume/mix.
Higher sales volume/mix across all segments was driven by the end of customer inventory destocking across most key end markets and innovation driving growth above underlying market trends.
EBIT increased primarily due to higher sales volume/mix, higher spreads in Chemical Intermediates, and improved asset utilization. This was partially offset by higher variable compensation and by operating costs for the
Segment Results 3Q 2024 versus 3Q 2023
Advanced Materials – Sales revenue increased 5 percent due to 8 percent higher sales volume/mix partially offset by 3 percent lower selling prices.
Higher sales volume/mix was driven by the end of customer inventory destocking across key end markets as well as continued growth of premium interlayers products in the automotive end market. This growth was partially offset by lower selling prices.
EBIT increased primarily due to higher sales volume/mix and improved asset utilization that was partially offset by higher costs associated with the
Additives & Functional Products – Sales revenue increased 11 percent due to 11 percent higher sales volume/mix.
Higher sales volume/mix was driven primarily by the end of customer inventory destocking across key end markets and heat transfer fluid project fulfillments.
EBIT increased primarily due to higher sales volume/mix.
Fibers – Sales revenue increased 4 percent due to 2 percent higher sales volume/mix and 2 percent higher selling prices.
Higher selling prices were driven by acetate tow price increases. Sales volume/mix increased primarily due to textiles.
EBIT was slightly up primarily due to improved price-cost.
Chemical Intermediates – Sales revenue increased 13 percent due to 7 percent higher sales volume/mix and 6 percent higher selling prices.
Higher sales volume/mix and higher selling prices were driven by the end of customer inventory destocking and improved market conditions compared to the prior year period.
EBIT increased primarily due to improved olefin and derivative spreads.
Cash Flow
In third quarter 2024, cash provided by operating activities was
2024 Outlook
Commenting on the outlook for full-year 2024, Costa said, “We are proud to have delivered another strong quarter in this period of prolonged macroeconomic weakness. As expected, sales volume improved from last year mostly due to the lack of customer inventory destocking. With destocking over, our demand has reconnected to our end markets, which remain stable. In the fourth quarter, we expect to see normal seasonal volume declines across most of our markets. We also expect to continue to leverage our innovation-driven growth model to drive growth above our markets. We expect to benefit from commercial excellence and the continued flow through of lower raw material and energy costs in our specialty businesses. While we have made significant progress achieving consistent production rates at the
The full-year 2024 projected adjusted diluted EPS and Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) exclude any non-core, unusual, or nonrecurring items. Our financial results forecasts do not include non-core items (such as mark-to-market pension and other postretirement benefit gain or loss, and asset impairments and restructuring charges) or any unusual or non-recurring items because we are unable to predict with reasonable certainty the financial impact of such items. These items are uncertain and depend on various factors, and we are unable to reconcile projected adjusted diluted EPS and EBITDA excluding non-core and any unusual or non-recurring items to reported GAAP diluted EPS or net earnings without unreasonable efforts.
Forward-Looking Statements
The information in this release and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, volumes, pricing, margins, cost reductions, expenses, taxes, liquidity, capital expenditures, cash flow, dividends, share repurchases or other financial items, statements of management’s plans, strategies and objectives for future operations, and statements regarding future economic, industry or market conditions or performance. Such projections and estimates are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans. Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the company’s filings with the
Conference Call and Webcast Information
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