Eastman Announces Third-Quarter 2024 Financial Results
Eastman Chemical Company (NYSE:EMN) reported strong Q3 2024 results with sales revenue increasing 9% to $2,464 million, primarily driven by 8% higher sales volume/mix across all segments. Earnings per diluted share rose to $1.53, while adjusted EPS reached $2.26. The company maintained its full-year 2024 EPS guidance at $7.50-$7.70. Notable achievements include improved EBIT margin by 360 basis points and return of $195 million to shareholders. The company announced plans to construct a second methanolysis facility in Longview, Texas, while noting some operational challenges at the Kingsport facility.
Eastman Chemical Company (NYSE:EMN) ha riportato risultati solidi per il terzo trimestre del 2024, con un incremento delle entrate dalle vendite del 9%, raggiungendo i 2.464 milioni di dollari, principalmente grazie a un aumento dell'8% del volume delle vendite/mix in tutti i segmenti. Gli utili per azione diluiti sono saliti a 1,53 dollari, mentre l'EPS rettificato ha raggiunto i 2,26 dollari. L'azienda ha mantenuto la sua previsione per l'EPS dell'intero anno 2024 tra 7,50-7,70 dollari. Tra i risultati significativi si annovera un miglioramento del margine EBIT di 360 punti base e un ritorno di 195 milioni di dollari agli azionisti. L'azienda ha annunciato piani per costruire un secondo impianto di metanolisi a Longview, Texas, pur notando alcune sfide operative presso l'impianto di Kingsport.
Eastman Chemical Company (NYSE:EMN) informó resultados sólidos para el tercer trimestre de 2024, con ingresos de ventas que aumentaron un 9% hasta $2,464 millones, impulsados principalmente por un aumento del 8% en el volumen/mix de ventas en todos los segmentos. Las ganancias por acción diluidas aumentaron a $1.53, mientras que el EPS ajustado alcanzó $2.26. La compañía mantuvo su guía de EPS para todo el año 2024 entre $7.50 y $7.70. Logros notables incluyen una mejora en el margen EBIT de 360 puntos básicos y un retorno de $195 millones a los accionistas. La compañía anunció planes para construir una segunda planta de metanolización en Longview, Texas, aunque mencionó algunos desafíos operativos en la planta de Kingsport.
이스트맨 화학 회사 (NYSE:EMN)는 2024년 3분기 강력한 실적을 보고했으며, 매출이 9% 증가한 24억 6400만 달러에 달했습니다. 이는 모든 부문에서 8% 증가한 판매량/구성이 주 효과를 발휘했기 때문입니다. 희석 주당 순이익은 1.53달러로 상승했으며, 조정된 EPS는 2.26달러에 도달했습니다. 회사는 2024년 전체 EPS 가이던스를 7.50-7.70달러로 유지했습니다. 주목할 만한 성과에는 EBIT 마진이 360 기반 포인트 개선되었고, 주주에게 1억 9500만 달러를 반환한 것이 포함됩니다. 회사는 텍사스 롱뷰에 두 번째 메탄올 분해 시설을 건설할 계획을 발표했으며, 킹스포트 시설에서 일부 운영상의 어려움이 있었음을 언급했습니다.
Eastman Chemical Company (NYSE:EMN) a annoncé de solides résultats pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 9 % à 2 464 millions de dollars, principalement dû à une augmentation de 8 % du volume/du mix de ventes dans tous les segments. Le bénéfice par action diluée a augmenté pour atteindre 1,53 dollar, tandis que l'EPS ajusté a atteint 2,26 dollars. L'entreprise a maintenu ses prévisions d'EPS pour l'année entière 2024 entre 7,50 et 7,70 dollars. Parmi les réalisations notables, on note une amélioration de la marge EBIT de 360 points de base et un retour de 195 millions de dollars aux actionnaires. L'entreprise a annoncé des projets pour construire une deuxième installation de méthanolisation à Longview, Texas, tout en signalant certaines difficultés opérationnelles au sein de l'installation de Kingsport.
Eastman Chemical Company (NYSE:EMN) berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem Umsatzplus von 9 % auf 2.464 Millionen Dollar, hauptsächlich aufgrund eines um 8 % höheren Verkaufsvolumens/Mix in allen Segmenten. Der Gewinn pro verwässerter Aktie stieg auf 1,53 Dollar, während das bereinigte EPS 2,26 Dollar erreichte. Das Unternehmen hielt seine Prognose für den EPS im gesamten Jahr 2024 bei 7,50-7,70 Dollar. Zu den bemerkenswerten Erfolgen zählt eine Verbesserung der EBIT-Marge um 360 Basispunkte und die Rückkehr von 195 Millionen Dollar an die Aktionäre. Das Unternehmen kündigte Pläne zum Bau einer zweiten Methanol-Isolationsanlage in Longview, Texas, an, wies jedoch auf einige betriebliche Herausforderungen in der Anlage in Kingsport hin.
- Sales revenue increased 9% to $2,464 million
- Adjusted EPS grew significantly from $1.47 to $2.26
- EBIT margin improved by 360 basis points
- Returned $195 million to shareholders, including $100 million in share repurchases
- Sales volume/mix growth of 8% across all segments
- Cash from operations decreased from $514M to $396M
- Operational challenges and unexpected downtime at Kingsport methanolysis facility
- Normal seasonal volume declines expected in Q4
Insights
The Q3 results show strong operational performance with notable improvements across key metrics. Sales revenue increased 9% to
The company's performance across all segments shows recovery from previous inventory destocking, with Chemical Intermediates leading revenue growth at
While operating cash flow decreased to
The operational improvements across Eastman's specialty chemicals portfolio are particularly noteworthy. The Advanced Materials segment's growth in premium interlayers for automotive applications and the Additives & Functional Products'
The planned Longview methanolysis facility expansion is strategically significant, advancing Eastman's circular economy initiatives despite Kingsport's challenges. This investment signals confidence in long-term demand for molecular recycling capabilities and positions Eastman as a leader in sustainable chemical solutions.
The improved spreads in Chemical Intermediates and stable performance in Fibers indicate effective margin management across both commodity and specialty segments, important for maintaining profitability in varying market conditions.
- 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
-
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 $100 million
(In millions, except per share amounts; unaudited) |
|
|
|
3Q24 |
|
3Q23 |
Sales revenue |
|
|
$ |
2,464 |
$ |
2,267 |
|
|
|
|
|
||
Earnings before interest and taxes (“EBIT”) |
|
|
|
329 |
|
256 |
|
|
|
|
|
||
Adjusted EBIT* |
|
|
|
366 |
|
256 |
Earnings per diluted share |
|
|
|
1.53 |
|
1.49 |
|
|
|
|
|
||
Adjusted earnings per diluted share* |
|
|
|
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 Mark Costa, Board Chair and CEO. “Underlying end-market trends remained largely unchanged from the second quarter, consistent with our expectations. In many of our specialty product lines, we continue to grow above underlying end markets, including automotive. During this prolonged period of muted demand, I am proud of the way the Eastman team has worked to find ways to deliver on our earnings and cash commitments this year. In the circular economy, I am excited to announce that we have made an investment decision and will be moving forward with the construction of a second methanolysis facility in
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 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 Nov. 1, 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 4:15 p.m. ET on Oct. 31, 2024. To listen via telephone, the dial-in number is +1 (833) 470-1428, passcode: 170609. 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, Nov. 1, 2024, through 11:59 p.m. Eastern Time, Nov. 11, 2024, Toll Free at +1 (866) 813-9403, passcode 986486.
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/20241031853691/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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