Eastman Announces Second-Quarter 2024 Financial Results
Eastman Chemical Company (NYSE:EMN) reported strong second-quarter 2024 financial results, with sales revenue increasing 2% to $2,363 million. The company saw a 300-basis-point sequential margin improvement driven by volume/mix growth and operating leverage. Earnings per diluted share were $1.94, while adjusted earnings per diluted share reached $2.15. Eastman demonstrated commercial excellence by focusing on specialty product offerings and managing price-cost across the company. The company also continued to ramp up sales from its Kingsport methanolysis facility, broadening the range of hard-to-recycle feedstocks. For the full-year 2024, Eastman expects EPS to be between $7.40 and $7.85, with cash from operations projected at approximately $1.4 billion.
Eastman Chemical Company (NYSE:EMN) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un incremento del fatturato delle vendite del 2%, pari a 2.363 milioni di dollari. L'azienda ha registrato un miglioramento sequenziale del margine di 300 punti base grazie alla crescita del volume/mix e alla leva operativa. L'utile per azione diluito è stato di 1,94 dollari, mentre l'utile rettificato per azione diluito ha raggiunto i 2,15 dollari. Eastman ha dimostrato eccellenza commerciale concentrandosi sull'offerta di prodotti speciali e gestendo i costi dei prezzi in tutta l'azienda. La società ha inoltre continuato ad aumentare le vendite del suo stabilimento di metanolisi di Kingsport, ampliando la gamma di materie prime difficili da riciclare. Per l'intero anno 2024, Eastman prevede che l'EPS sarà compreso tra 7,40 e 7,85 dollari, con flussi di cassa dalle operazioni previsti intorno a 1,4 miliardi di dollari.
Eastman Chemical Company (NYSE:EMN) reportó resultados financieros sólidos para el segundo trimestre de 2024, con ventas que aumentaron un 2% alcanzando 2.363 millones de dólares. La compañía experimentó una mejora secuencial del margen de 300 puntos básicos impulsada por el crecimiento del volumen/mix y la palanca operativa. Las ganancias por acción diluida fueron de 1,94 dólares, mientras que las ganancias ajustadas por acción diluida alcanzaron los 2,15 dólares. Eastman demostró excelencia comercial enfocándose en la oferta de productos especializados y gestionando el precio-costo en toda la empresa. La empresa también continuó aumentando las ventas de su instalación de metanolisis en Kingsport, ampliando la gama de materias primas difíciles de reciclar. Para todo el año 2024, Eastman espera que el EPS esté entre 7,40 y 7,85 dólares, con flujos de efectivo de las operaciones proyectados en aproximadamente 1,4 mil millones de dólares.
이스트맨 화학 회사 (NYSE:EMN)는 2024년 2분기 강력한 재무 실적을 보고하며, 매출이 2% 증가하여 23억 6,300만 달러에 달했습니다. 회사는 볼륨/혼합 성장과 운영 레버리지에 힘입어 300베이시스 포인트의 순차적 마진 개선을 경험했습니다. 희석 주당 순이익은 1.94달러였으며, 조정된 희석 주당 순이익은 2.15달러에 도달했습니다. 이스트맨은 전문 제품 제공에 집중하고 회사 전반에 걸쳐 가격-비용 관리를 통해 상업적 우수성을 입증했습니다. 회사는 또한 킹스포트 메탄올리스 공장의 판매를 계속 증가시키며 재활용이 어려운 원자재의 범위를 넓혔습니다. 2024년 전체 연도에 대해 이스트맨은 EPS가 7.40달러에서 7.85달러 사이일 것으로 예상하며, 운영에서 발생하는 현금은 약 14억 달러로 예상하고 있습니다.
Eastman Chemical Company (NYSE:EMN) a rapporté de solides résultats financiers pour le deuxième trimestre 2024, avec un chiffre d'affaires en hausse de 2% à 2,363 millions de dollars. L'entreprise a observé une amélioration séquentielle de la marge de 300 points de base grâce à la croissance du volume/mélange et à l'effet de levier opérationnel. Le bénéfice par action dilué était de 1,94 dollar, tandis que le bénéfice ajusté par action dilué atteignait 2,15 dollars. Eastman a fait preuve d'excellence commerciale en se concentrant sur l'offre de produits spécialisés et en gérant le prix-coût dans toute l'entreprise. La société a également continué à augmenter ses ventes de son site de méthanolisation à Kingsport, élargissant la gamme de matières premières difficiles à recycler. Pour l'année entière 2024, Eastman prévoit un BPA entre 7,40 et 7,85 dollars, avec des flux de trésorerie provenant des opérations projetés à environ 1,4 milliard de dollars.
Eastman Chemical Company (NYSE:EMN) hat starke Finanzzahlen für das zweite Quartal 2024 gemeldet, mit einem Anstieg der Verkaufsumsätze um 2% auf 2.363 Millionen Dollar. Das Unternehmen verzeichnete eine verbesserte sequentialer Margen von 300 Basispunkten, die durch Volumen-/Mischwachstum und operative Hebelwirkung vorangetrieben wurde. Der Gewinn pro verwässerter Aktie betrug 1,94 Dollar, während der bereinigte Gewinn pro verwässerter Aktie 2,15 Dollar erreichte. Eastman zeigte kommerzielle Exzellenz, indem es sich auf Spezialprodukte konzentrierte und die Preis-Kosten-Relation im Unternehmen verwaltete. Das Unternehmen setzte auch den Umsatz aus seiner Metanol-Anlage in Kingsport fort und erweiterte das Sortiment an schwer zu recycelnden Rohstoffen. Für das Gesamtjahr 2024 erwartet Eastman einen EPS zwischen 7,40 und 7,85 Dollar, mit einem Cashflow aus dem operativen Geschäft von etwa 1,4 Milliarden Dollar.
- Sales revenue increased 2% to $2,363 million in Q2 2024
- Adjusted earnings per diluted share improved to $2.15 from $1.99 in Q2 2023
- 300-basis-point sequential margin improvement achieved
- Strong year-over-year sales volume/mix growth driven by Advanced Materials segment
- Successful ramp-up of sales from Kingsport methanolysis facility
- Repurchased $100 million of shares in Q2 2024
- Net cash provided by operating activities decreased to $367 million from $410 million in Q2 2023
- Earnings per diluted share declined to $1.94 from $2.27 in Q2 2023
- Lower selling prices due to decreased raw material prices across all segments
- Weakness reported in the building and construction end market
- EBIT decreased in Chemical Intermediates segment due to lower spreads
Insights
Eastman Chemical Company's Q2 2024 results demonstrate resilience in a challenging economic environment. The company reported a 2% increase in sales revenue to
Key financial highlights include:
- EBIT increased to
$337 million from$323 million in Q2 2023 - Adjusted earnings per diluted share rose to
$2.15 from$1.99 - Operating cash flow remained solid at
$367 million
The company's focus on specialty products and price-cost management has yielded a
However, investors should note the slight decline in operating cash flow compared to Q2 2023 and the lower earnings per diluted share on a GAAP basis. The full-year 2024 EPS guidance of
The company's progress in circular economy initiatives, particularly the Kingsport methanolysis facility, is promising. The expected
Eastman's Q2 2024 results offer valuable insights into broader market trends. The
The company's performance across different segments provides a nuanced view of market dynamics:
- Advanced Materials saw an
8% revenue increase, driven by12% higher sales volume/mix - Additives & Functional Products experienced a
4% revenue decrease due to lower selling prices - Fibers showed modest growth with a
2% revenue increase - Chemical Intermediates maintained flat revenue despite volume growth, due to lower selling prices
These segment-specific trends reflect varying levels of recovery and ongoing pressures across different industries. The company's ability to drive volume growth in most segments, despite a weak global economic environment, is noteworthy.
Looking ahead, Eastman's cautious outlook for the second half of 2024, with little evidence for end-market demand improvement, aligns with broader economic forecasts. This tempered expectation, combined with the company's focus on innovation-driven growth and operational efficiency, suggests a realistic approach to navigating ongoing market uncertainties.
Eastman's Q2 2024 results highlight the growing importance of sustainable technologies in the chemical industry. The company's progress with its Kingsport methanolysis facility is particularly noteworthy. This advanced recycling technology represents a significant step towards a circular economy for plastics, addressing the critical issue of hard-to-recycle waste.
Key technological advancements include:
- Increased operating rates at the Kingsport facility
- Successful broadening of the range of hard-to-recycle feedstocks
- Continued ramp-up of sales from the facility to customers
The expected
However, the mention of "start-up issues" suggests that the technology is still in its early stages and may require further refinement. The company's ability to overcome these challenges and scale the technology will be important for long-term success.
Eastman's focus on leveraging its "innovation-driven growth model" to deliver growth above end markets, especially in the circular economy, indicates a strategic commitment to technology-driven sustainability. This approach could provide a competitive edge in an industry increasingly shaped by environmental concerns and regulatory pressures.
- Delivered strong year-over-year sales volume/mix growth driven by Advanced Materials.
- Drove a 300-basis-point sequential margin improvement through volume/mix growth and operating leverage.
- Demonstrated continued commercial excellence by focusing on specialty product offerings and managing price-cost across the company.
-
Continued to ramp up sales to our customers from the
Kingsport methanolysis facility, while demonstrating higher operating rates and broadening the range of hard-to-recycle feedstocks. -
Delivered solid 1H24 operating cash flow and repurchased
$100 million
(In millions, except per share amounts; unaudited) |
|
|
2Q24 |
2Q23 |
Sales revenue |
|
|
|
|
|
|
|
|
|
Earnings before interest and taxes (“EBIT”) |
|
|
337 |
323 |
|
|
|
|
|
Adjusted EBIT* |
|
|
353 |
336 |
Earnings per diluted share |
|
|
1.94 |
2.27 |
|
|
|
|
|
Adjusted earnings per diluted share* |
|
|
2.15 |
1.99 |
Net cash provided by operating activities |
|
|
367 |
410 |
*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. |
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“We delivered strong second-quarter results driven by topline growth and strong sequential margin improvement,” said Mark Costa, Board Chair and CEO. “We saw modest seasonal increases in our sales volume led by durables and automotive end markets. Underlying primary demand trends remained weak. Against this backdrop, the Eastman team remains focused on commercial and operational excellence. With customer inventory destocking largely complete and end-market demand stabilizing at lower levels, we will continue to focus on controllable items and leveraging our innovation-driven growth model to deliver growth above our underlying end markets. We also continue to advance our circular platform and demonstrate our leadership position in the circular economy. We continued to successfully serve our customers, demonstrated higher operating rates, and achieved an important milestone by introducing hard-to-recycle feedstocks into the
Corporate Results 2Q 2024 versus 2Q 2023
Sales revenue increased 2 percent primarily due to 6 percent higher sales volume/mix partially offset by 4 percent lower selling prices.
Higher sales volume/mix was driven by the end of customer inventory destocking across most end markets. This improvement was partially offset by weakness in the building and construction end market. Lower selling prices were due to lower raw material prices across all segments.
EBIT increased primarily due to higher sales volume/mix in Advanced Materials, partially offset by lower price-cost in Chemical Intermediates.
Segment Results 2Q 2024 versus 2Q 2023
Advanced Materials – Sales revenue increased 8 percent due to 12 percent higher sales volume/mix partially offset by 4 percent lower selling prices.
Higher sales volume/mix was the result of the end of customer inventory destocking especially in the durables and packaging end markets as well as premium interlayers product growth in the automotive end market. This growth was partially offset by lower selling prices.
EBIT increased due to higher sales volume/mix, partially offset by unfavorable price-cost.
Additives & Functional Products – Sales revenue decreased 4 percent due to 4 percent lower selling prices.
Lower selling prices were primarily due to lower raw material prices, including the impact of cost-pass-through contracts in care additives and functional amines. Sales volume/mix was unchanged as growth in coatings additives and care additives was offset by a decline in specialty fluids due to lower heat transfer fluid project fulfillments.
EBIT decreased due to lower heat transfer fluid project fulfillments.
Fibers – Sales revenue increased 2 percent due to 1 percent higher sales volume/mix and 1 percent higher selling prices.
Higher selling prices were driven by acetate tow price increases. Sales volume/mix increased primarily due to growth in the textiles product line.
EBIT increased due to favorable price-cost and higher sales volume/mix.
Chemical Intermediates – Sales revenue was flat due to 6 percent higher sales volume/mix, fully offset by 6 percent lower selling prices.
Higher sales volume/mix across the segment was driven by the end of customer inventory destocking. Higher sales volume/mix was offset by lower selling prices due to lower raw material and energy prices, particularly for acetyls and intermediates products.
EBIT decreased due to lower spreads more than offsetting higher sales volume/mix.
Cash Flow
In second quarter 2024, cash provided by operating activities was
2024 Outlook
Commenting on the outlook for full-year 2024, Costa said, “We delivered solid results in the first half of the year despite a weak global economic environment. Through this year, we are benefiting from the end of destocking, as our volumes have reconnected to underlying demand. Consistent with our previous end-market expectations, we continue to see little evidence for end-market demand improvement in the second half of the year. In this context, we remain focused on leveraging our innovation-driven growth model to deliver growth above our end markets, especially in the circular economy. We also expect to benefit from continued pricing discipline, improved asset utilization, and disciplined cost management. We expect the benefit of earnings generated by our
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
This information 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 Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov and the company’s website at www.eastman.com.
Conference Call and Webcast Information
Eastman will host a conference call with industry analysts on July 26, 2024, at 8:00 a.m. ET. To listen to the live webcast of the conference call and view the accompanying slides and prepared remarks, go to investors.eastman.com, Events & Presentations. The slides and prepared remarks to be discussed during the call and webcast will be available at investors.eastman.com at approximately 4:30 p.m. ET on July 25, 2024. To listen via telephone, the dial-in number is +1 (833) 470-1428, passcode: 696395. A web replay, a replay in downloadable MP3 format, and the accompanying slides and prepared remarks will be available at investors.eastman.com, Events & Presentations. A telephone replay will be available continuously beginning at approximately 1:00 p.m. Eastern Time, July 26, 2024, through 11:59 p.m. Eastern Time, Aug. 5, 2024, Toll Free at +1 (866) 813-9403, passcode 643135.
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2023 revenue of approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725916788/en/
Media: Tracy Kilgore Addington
423-224-0498 / tracy@eastman.com
Investors: Greg Riddle
212-835-1620 / griddle@eastman.com
Source: Eastman Chemical Company
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