Group 1: Investment and Expansion - Eastman Chemical Company (EMN) will invest in upgrading and expanding its extrusion capability for Interlayers product lines at its Ghent, Belgium manufacturing site, enhancing supply capacity for Saflex polyvinyl butyral (PVB) products in the Automotive Premiums sector [1] - The project is expected to be completed by 2026, positioning Eastman for future growth in automotive and architecture segments [1] Group 2: Market Trends and Demand - Strong macrotrends in expanding connectivity, autonomous driving, and electrification are driving demand for Eastman's Automotive Premium products, including Saflex Horizon Vision for head-up displays and Evoca RSL for electric vehicles [2] - This investment supports the company's innovation-driven growth strategy and provides service differentiation to clients [2] Group 3: Product Features and Financial Performance - Saflex interlayers, made of PVB films laminated between glass sheets, improve automotive and architectural glass lamination through solar management, noise reduction, safety, security, and ultraviolet protection [3] - Eastman Chemical's shares have surged 27% over the past year, compared to the industry's 1.1% rise [3] - The company expects earnings per share for 2024 to be between $7.50 and $7.70, with operating cash flow projected to total $1.3 billion [3] Group 4: Seasonal Trends and Growth Strategy - Eastman anticipates normal seasonal volume declines across most end markets in the fourth quarter but plans to leverage its innovation-driven growth model to drive growth [4]

Financial Data and Key Metrics Changes - The company reported a sequential volume mix increase of 4% in Q3 2024, indicating improved performance across various segments [42]. - Management expects modest growth in revenue driven by a combination of market recovery and innovation initiatives [14][16]. Business Line Data and Key Metrics Changes - The specialty plastics segment showed stable performance, with modest growth attributed to the recovery in stable markets [78]. - The automotive segment experienced high single-digit volume mix growth, outperforming the overall market, driven by design trends and increased adoption of laminated glass [75]. Market Data and Key Metrics Changes - Discretionary markets, including auto and housing, have not seen significant demand improvement, representing about 40% of revenue, compared to a normal expectation of 50% [11]. - Stable markets such as personal care and aviation have shown steady growth, contributing to approximately 60% of the company's revenue [10]. Company Strategy and Development Direction - The company is focusing on innovation to drive growth, particularly in the methanolysis facility and new product launches in food packaging [13][41]. - Management is optimizing the cost structure to improve gross margin realization, including shutting down less efficient operations [18]. Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain, but management anticipates a recovery in demand as interest rates stabilize [10][12]. - There is a significant amount of pent-up demand that has not been served, particularly in discretionary markets [9]. Other Important Information - The Texas methanolysis project is expected to benefit from lessons learned from the Kingsport project, with federal support to mitigate inflation impacts [33]. - The company is leveraging its cellulosic products for new applications, particularly in biodegradable food packaging [41]. Q&A Session Summary Question: Outlook for 2025 and volume growth - Management indicated that while there is modest underlying growth expected, innovation will drive above-market growth, particularly in stable markets [8][10]. Question: Cost structure improvements - The company is focused on optimizing operations and reducing complexity to enhance gross margins, with targeted cost savings expected to exceed previous estimates [17][18]. Question: Methanolysis project challenges - Management acknowledged that consumer weakness has impacted EBITDA expectations, but they expect recovery as markets stabilize [21][22]. Question: Fibers business outlook - The fibers segment is expected to remain stable, with some capacity coming online in China, but the company is confident in its supply reliability [24][26]. Question: Texas plant differences from Kingsport - The Texas plant will incorporate lessons learned from Kingsport, aiming for lower construction costs and improved operational reliability [30][31]. Question: Status of the France methanolysis project - The project is progressing but has faced delays due to changes in EU policy affecting customer contracts [56][58]. Question: Demand for methanolysis products in 2025 - Management noted that while there is uncertainty due to the upcoming election, they do not expect significant impacts on demand from political changes [88][89].

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited consolidated financial statements for the period ended September 30, 2024, show an increase in sales and net earnings for both the third quarter and the first nine months compared to the prior year, with total assets growing to **$15.06 billion** from **$14.63 billion** at year-end 2023, while net cash provided by operating activities decreased to **$747 million** for the first nine months of 2024 from **$922 million** in the same period of 2023 [Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Earnings%2C%20Comprehensive%20Income%20and%20Retained%20Earnings) Consolidated Earnings Summary (Q3 & First Nine Months) | Indicator (in millions, except per share) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $2,464 | $2,267 | $7,137 | $7,003 | | **Gross Profit** | $605 | $484 | $1,736 | $1,597 | | **EBIT** | $329 | $256 | $929 | $825 | | **Net Earnings Attributable to Eastman** | $180 | $178 | $575 | $584 | | **Diluted EPS** | $1.53 | $1.49 | $4.86 | $4.89 | - Comprehensive income attributable to Eastman increased to **$204 million** in Q3 2024 from **$155 million** in Q3 2023, and to **$616 million** for the first nine months of 2024 from **$495 million** in the prior-year period[12](index=12&type=chunk) [Unaudited Consolidated Statements of Financial Position](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Financial%20Position) Consolidated Financial Position Summary | Account (in millions) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $3,937 | $3,481 | | **Total Assets** | $15,060 | $14,633 | | **Total Current Liabilities** | $2,590 | $2,576 | | **Long-Term Borrowings** | $4,606 | $4,305 | | **Total Liabilities** | $9,332 | $9,103 | | **Total Eastman Stockholders' Equity** | $5,654 | $5,458 | [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary (First Nine Months) | Activity (in millions) | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $747 | $922 | | **Net Cash used in Investing Activities** | ($402) | ($680) | | **Net Cash used in Financing Activities** | ($273) | ($295) | | **Net Change in Cash** | $74 | ($54) | | **Cash at End of Period** | $622 | $439 | [Notes to the Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including the adoption of new standards and the status of those not yet adopted, covering inventory valuation, income tax provisions, changes in borrowings, extensive use of derivative instruments for hedging, retirement plan costs, environmental liabilities, stockholders' equity movements, EPS calculations, restructuring charges, and segment performance, notably recording **$41 million** in asset impairments and restructuring charges in the first nine months of 2024 and actively managing its debt portfolio through new issuances and repayments - The company is currently evaluating the impact of ASU 2023-07, which will require enhanced disclosures for reportable segments, and ASU 2023-09, which modifies income tax disclosure requirements, both effective for fiscal years beginning after December 15, 2024[28](index=28&type=chunk)[31](index=31&type=chunk) - Eastman utilizes off-balance sheet accounts receivable factoring programs, selling **$2.0 billion** in receivables in the first nine months of 2024, compared to **$2.1 billion** in the same period of 2023[32](index=32&type=chunk) Asset Impairments, Restructuring, and Other Charges (in millions) | Charge Type | Q3 2024 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | | Asset impairments | $5 | $5 | $0 | | Severance charges | $10 | $21 | $16 | | Site closure and other charges | $15 | $15 | $6 | | **Total** | **$30** | **$41** | **$22** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the increase in sales revenue for Q3 and the first nine months of 2024 primarily to higher sales volume as customer inventory destocking ended, with EBIT (excluding non-core and unusual items) rising due to higher volumes and favorable price-cost spreads, while cash from operations decreased due to higher working capital, and the company actively managed its debt and continued its share repurchase program [Overview](index=31&type=section&id=Overview) - The company's strategy is an innovation-driven growth model focused on scalable technology platforms, differentiated application development, and direct market engagement, with investment in molecular recycling technologies as a key focus[145](index=145&type=chunk) Key Financial Metrics (in millions) | Metric (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $2,464 | $2,267 | $7,137 | $7,003 | | **EBIT** | $329 | $256 | $929 | $825 | | **Adjusted EBIT** | $366 | $256 | $993 | $875 | - Sales revenue increased in Q3 and YTD 2024 primarily due to higher sales volume, attributed to the end of customer inventory destocking, though lower selling prices partially offset this in the YTD period[146](index=146&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Sales Revenue Change Analysis | Period | Total Change | Volume/Mix Effect | Price Effect | Exchange Rate Effect | | :--- | :--- | :--- | :--- | :--- | | **Q3 2024 vs Q3 2023** | +9% | +8% | +1% | 0% | | **YTD 2024 vs YTD 2023** | +2% | +6% | -4% | 0% | - Gross profit, excluding non-core and unusual items, increased **26%** in Q3 2024 and **8%** in the first nine months of 2024 compared to the prior-year periods[154](index=154&type=chunk) - SG&A expenses rose **14%** in Q3 and **3%** YTD, primarily due to higher variable compensation costs, which were partially offset by cost reduction initiatives[155](index=155&type=chunk) Adjusted Net Earnings and EPS Reconciliation (YTD 2024) | Item (in millions, except EPS) | Amount | Per Share | | :--- | :--- | :--- | | **Net Earnings (GAAP)** | **$575** | **$4.86** | | Non-core & unusual items, net of tax | $48 | $0.41 | | Interim adjustment to tax provision | $89 | $0.75 | | **Adjusted Net Earnings (Non-GAAP)** | **$712** | **$6.02** | [Summary by Operating Segment](index=37&type=section&id=Summary%20by%20Operating%20Segment) All four operating segments reported higher sales in Q3 2024 versus Q3 2023, with Advanced Materials and Fibers showing sales growth YTD, while Additives & Functional Products declined slightly and Chemical Intermediates was flat, and EBIT performance was mixed, with Advanced Materials and Fibers showing strong growth YTD, while Additives & Functional Products and Chemical Intermediates saw EBIT declines Advanced Materials (AM) Segment Performance (in millions) | Metric (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $787 | $746 | $2,330 | $2,227 | | **Adjusted EBIT** | $122 | $93 | $357 | $278 | Additives & Functional Products (AFP) Segment Performance (in millions) | Metric (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $744 | $670 | $2,166 | $2,194 | | **Adjusted EBIT** | $130 | $105 | $362 | $369 | Chemical Intermediates (CI) Segment Performance (in millions) | Metric (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $593 | $527 | $1,631 | $1,630 | | **EBIT** | $43 | $6 | $81 | $87 | Fibers Segment Performance (in millions) | Metric (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $336 | $323 | $997 | $949 | | **Adjusted EBIT** | $112 | $109 | $351 | $309 | [Liquidity and Other Financial Information](index=41&type=section&id=Liquidity%20and%20Other%20Financial%20Information) - Cash from operating activities decreased by **$175 million** in the first nine months of 2024 compared to the prior year, primarily due to higher working capital[198](index=198&type=chunk) - The company issued **$500 million** in 5.0% notes due 2029 and **$750 million** in 5.625% notes due 2034 during 2024, while also repaying or redeeming several debentures, notes, and term loans[206](index=206&type=chunk)[208](index=208&type=chunk)[212](index=212&type=chunk) - Capital expenditures for the first nine months of 2024 were **$420 million**, down from **$649 million** in the same period of 2023, with a full-year 2024 forecast of approximately **$625 million**[217](index=217&type=chunk) - The company repurchased **$200 million** of its common stock in the first nine months of 2024 under its **$2.5 billion** authorization from December 2021[218](index=218&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Eastman is exposed to market risks from changes in foreign currency exchange rates, commodity prices, and interest rates, which it manages through various hedging strategies, with a hypothetical **10%** fluctuation in the euro exchange rate impacting designated net investment values by **$228 million**, largely offset by hedges on euro-denominated borrowings and cross-currency swaps, and no other material changes to market risks since the 2023 Annual Report - The company's primary market risks stem from foreign currency exchange rates, commodity pricing, and interest rates[222](index=222&type=chunk) - A **10%** fluctuation in the euro currency rate would have a **$228 million** impact on net investment values, but this is generally offset by designated hedges on euro-denominated debt and cross-currency swaps[224](index=224&type=chunk) [Controls and Procedures](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2024, with no material changes in internal control over financial reporting during the third quarter of 2024 - The CEO and CFO concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective at a reasonable assurance level[226](index=226&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the third quarter of 2024[227](index=227&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Eastman is involved in various legal proceedings in the ordinary course of business, which management does not believe will have a material adverse effect on the company's financial condition, and also notes its connection to legacy tort claims from Solutia, primarily the responsibility of Monsanto (now part of Bayer AG) under a settlement agreement - The company is party to various lawsuits and claims but does not expect their resolution to have a material adverse effect on its financial position[229](index=229&type=chunk) - Through its acquisition of Solutia, Eastman is indemnified by Monsanto (Bayer AG) for legacy tort claims under a 2008 settlement agreement[230](index=230&type=chunk) [Risk Factors](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the company's risk factors from those disclosed in its 2023 Annual Report on Form 10-K - The company refers to the Risk Factors section of its 2023 Annual Report on Form 10-K, indicating no material changes[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Under its **$2.5 billion** share repurchase authorization from December 2021, Eastman repurchased **1,018,269** shares for **$100 million** in the third quarter of 2024, with total repurchases amounting to **2,018,274** shares for **$200 million** for the first nine months of 2024, leaving approximately **$1.515 billion** available under the program as of September 30, 2024 - In Q3 2024, the company repurchased **1,018,269** shares for **$100 million**[234](index=234&type=chunk) Share Repurchases in Q3 2024 | Period | Total Shares Purchased | Average Price Paid | Approx. Value Remaining Under Plan | | :--- | :--- | :--- | :--- | | July 1-31, 2024 | 30,000 | $102.71 | $1.612 billion | | Aug 1-31, 2024 | 485,455 | $96.65 | $1.565 billion | | Sep 1-30, 2024 | 502,814 | $99.44 | $1.515 billion | | **Total** | **1,018,269** | **$98.21** | **$1.515 billion** | [Other Information](index=47&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company discloses that its directors and officers may use Rule 10b5-1 trading plans for transactions in company securities, with two officers, Adrian Holt (SVP & CHRO) and Christopher M. Killian (SVP & Chief Technology Officer), adopting such plans for the potential sale of company stock during the third quarter of 2024 - The company's Insider Trading Policy permits directors and executive officers to enter into Rule 10b5-1 trading plans[237](index=237&type=chunk) - During Q3 2024, two senior vice presidents, Adrian Holt and Christopher M. Killian, adopted Rule 10b5-1 trading plans for the sale of up to **4,869** and **5,310** shares, respectively[239](index=239&type=chunk) [Exhibits](index=48&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including the company's certificate of incorporation, bylaws, the form of its 5.000% Notes due 2029, CEO and CFO certifications, and XBRL data files - The report includes standard corporate governance documents, debt instrument forms, required officer certifications (Rule 13a-14(a) and Section 1350), and interactive data files (XBRL) as exhibits[242](index=242&type=chunk)

Eastman Chemical Company (EMN) logged earnings (as reported) of $1.53 per share compared with $1.49 in the year-ago quarter. Barring one-time items, earnings were $2.26 per share, up from $1.47 in the year-ago quarter. It surpassed the Zacks Consensus Estimate of $2.13.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues increased roughly 9% year over year to $2,464 million in the quarter. The figure beat the Zacks Consensus Estimate of $2,394.2 million. EMN saw higher sales volum ...

3Q 2024 financial results October 31, 2024 Prepared remarks These slides should be reviewed with the accompanying prepared remarks posted on our website. Forward-looking statements The information in this presentation 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, liquid ...

Eastman Chemical (EMN) reported $2.46 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 8.7%. EPS of $2.26 for the same period compares to $1.47 a year ago.The reported revenue represents a surprise of +2.92% over the Zacks Consensus Estimate of $2.39 billion. With the consensus EPS estimate being $2.13, the EPS surprise was +6.10%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Eastman Chemical (EMN) came out with quarterly earnings of $2.26 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $1.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.10%. A quarter ago, it was expected that this specialty chemicals maker would post earnings of $1.99 per share when it actually produced earnings of $2.15, delivering a surprise of 8.04%.Over the last four quarte ...

EASTMAN Exhibit 99.01 Eastman Announces Third Quarter 2024 Financial Results KINGSPORT, Tenn., October 31, 2024 – Eastman Chemical Company (NYSE:EMN) announced its third quarter 2024 financial results. • 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 ...

Wall Street analysts expect Eastman Chemical (EMN) to post quarterly earnings of $2.12 per share in its upcoming report, which indicates a year-over-year increase of 44.2%. Revenues are expected to be $2.39 billion, up 5.6% from the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Prior to a company's earni ...

Eastman Chemical Company (EMN) is scheduled to release third-quarter 2024 results after the closing bell on Oct. 31.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company surpassed Zacks Consensus Estimate for earnings in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of around 6.5% on average. EMN pulled off an earnings surprise of 8% in the last reported quarter.Eastman is expected to have benefited from cost-cutting and productivity in ...