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Eastman (EMN) Partners Debrand to Recycle Textile Waste
zacks.com· 2024-05-21 10:50
Eastman and Debrand demonstrate the transformational power of molecular recycling technology to address the textile waste challenge. The partnership raises the bar for sustainable practices in the fashion sector by offering more circular solutions for apparel waste. Before it collaborated with Eastman, Debrand received a strategic investment from Waste Management, North America's leading provider of complete waste management, to supply circular solutions in the United States and Canada. Shares of Eastman ha ...
Eastman Chemical (EMN) Shares Pop 17% in 3 Months: Here's Why
zacks.com· 2024-05-17 13:40
Forecast-topping earnings performance in the first quarter of 2024 and upbeat prospects have contributed to the rally in the company's shares. EMN's adjusted earnings of $1.61 per share trounced the Zacks Consensus Estimate of $1.41. Revenues of $2,310 million for the quarter also beat the Zacks Consensus Estimate of $2,259.2 million. Eastman is gaining from its actions to manage costs. It is expected to benefit from lower operating costs from its operational transformation program. EMN is taking actions to ...
Eastman (EMN) & Lubrizol to Enhance TPE Overmolding Adhesion
zacks.com· 2024-05-16 12:50
This was an exceptional chance for two premier material companies to capitalize on sustainable multi-material solutions that enable customer innovation and push the boundaries of consumer product experiences, Lubrizol noted. Shares of Eastman have gained 24.4% over the past year compared with a 1.1% rise of its industry. Eastman Chemical predicts uncertain primary demand in key markets and regions through the remainder of 2024. However, the company continues to gain from its innovation-driven growth approac ...
This is Why Eastman Chemical (EMN) is a Great Dividend Stock
Zacks Investment Research· 2024-05-10 16:47
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors of ...
Eastman(EMN) - 2024 Q1 - Quarterly Report
2024-04-26 16:11
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number 1-12626 EASTMAN CHEMICAL COMPANY (Exact name of registrant as specified in its charter ...
Eastman(EMN) - 2024 Q1 - Earnings Call Transcript
2024-04-26 16:03
Eastman Chemical Company (NYSE:EMN) Q1 2024 Earnings Conference Call April 26, 2024 8:00 AM ET Company Participants Greg Riddle - IR Mark Costa - Board Chair and CEO William McLain - EVP and CFO Conference Call Participants Vincent Andrews - Morgan Stanley Aleksey Yefremov - KeyCorp Duffy Fischer - Goldman Sachs Frank Mitsch - Fermium Research David Begleiter - Deutsche Bank Jeff Zekauskas - JPMorgan John Roberts - Mizuho Kevin McCarthy - Vertical Research Partners Patrick Cunningham - Citi Josh Spector - U ...
Eastman's (EMN) Q1 Earnings and Sales Surpass Estimates
Zacks Investment Research· 2024-04-26 11:51
Eastman Chemical Company (EMN) reported first-quarter 2024 earnings of $1.39 per share, reflecting a rise of 24.1% from the year-ago quarter's figure of $1.12.EMN posted adjusted earnings of $1.61 per share, down 1.2% from the year-ago quarter figure of $1.63. It surpassed the Zacks Consensus Estimate of $1.41.The company’s revenues in the first quarter were $2,310 million, which beat the Zacks Consensus Estimate of $2,259.2 million. Sales decreased around 4.2% from $2,412 million reported in the prior-year ...
Eastman Chemical (EMN) Reports Q1 Earnings: What Key Metrics Have to Say
Zacks Investment Research· 2024-04-25 23:31
For the quarter ended March 2024, Eastman Chemical (EMN) reported revenue of $2.31 billion, down 4.2% over the same period last year. EPS came in at $1.61, compared to $1.63 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.26 billion, representing a surprise of +2.25%. The company delivered an EPS surprise of +14.18%, with the consensus EPS estimate being $1.41.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...
Eastman(EMN) - 2024 Q1 - Quarterly Results
2024-04-25 20:23
[Corporate Overview](index=1&type=section&id=Corporate%20Overview) Eastman reported strong Q1 2024 sequential earnings growth, driven by completed inventory destocking and Kingsport methanolysis facility revenue, despite a slight sales decline | (In millions, except per share amounts) | 1Q2024 | 1Q2023 | | :--- | :--- | :--- | | Sales revenue | $2,310 | $2,412 | | EBIT | $263 | $246 | | Adjusted EBIT* | $274 | $283 | | Earnings per diluted share | $1.39 | $1.12 | | Adjusted earnings per diluted share* | $1.61 | $1.63 | | Net cash used in operating activities | $(16) | $(2) | - CEO Mark Costa highlighted that **inventory destocking is complete** across most key end markets, including consumer durables, building and construction, and personal care[4](index=4&type=chunk) - The company achieved on-spec production and revenue generation at its Kingsport methanolysis facility, which is expected to contribute approximately **$75 million of incremental EBITDA** in 2024 compared to 2023[4](index=4&type=chunk)[8](index=8&type=chunk) - The U.S. Department of Energy selected Eastman to receive up to **$375 million** for a second molecular recycling project in Longview, Texas[8](index=8&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Results%201Q%202024%20versus%201Q%202023) Q1 2024 segment performance was mixed, with Advanced Materials and Fibers growing, while Additives & Functional Products and Chemical Intermediates declined [Advanced Materials](index=1&type=section&id=Advanced%20Materials) Advanced Materials sales increased 1% to **$748 million** due to higher volume/mix, leading to increased EBIT from improved price-cost dynamics - Sales revenue increased **1%** due to **4%** higher sales volume/mix, partially offset by **3%** lower selling prices[5](index=5&type=chunk) - Volume growth was driven by reduced customer inventory destocking in specialty plastics for consumer durables, though partially offset by destocking in the medical end market[6](index=6&type=chunk) - EBIT increased, primarily due to improved price-cost and higher sales volume/mix[7](index=7&type=chunk) [Additives & Functional Products](index=2&type=section&id=Additives%20%26%20Functional%20Products) Additives & Functional Products sales decreased 9% to **$704 million** due to lower prices and volume, resulting in decreased EBIT from higher manufacturing costs - Sales revenue decreased **9%**, resulting from **8%** lower selling prices and **1%** lower sales volume/mix[9](index=9&type=chunk) - Lower selling prices were mainly due to cost-pass-through contracts, with volume/mix down as growth in coatings and care additives was offset by declines in specialty fluids and agriculture[10](index=10&type=chunk) - EBIT decreased due to lower sales volume/mix and higher manufacturing costs from planned maintenance shutdowns[11](index=11&type=chunk) [Fibers](index=2&type=section&id=Fibers) Fibers sales grew 9% to **$331 million** driven by higher volume/mix and prices, with EBIT increasing due to improved price-cost - Sales revenue increased **9%**, comprised of **7%** higher sales volume/mix and **2%** higher selling prices[11](index=11&type=chunk) - Volume/mix growth was primarily driven by a **double-digit percentage increase** in textiles, thanks to strong adoption of Naia™ sustainable textile products[12](index=12&type=chunk) - EBIT increased as a result of higher sales volume/mix and improved price-cost[13](index=13&type=chunk) [Chemical Intermediates](index=2&type=section&id=Chemical%20Intermediates) Chemical Intermediates sales decreased 11% to **$523 million** due to lower prices, partially offset by volume, resulting in decreased EBIT from lower spreads - Sales revenue decreased **11%**, driven by **13%** lower selling prices, partially offset by **2%** higher sales volume/mix[13](index=13&type=chunk) - Lower selling prices were a result of weak market conditions and lower variable costs, while sales volume/mix increased slightly due to growth in the plasticizers product line[14](index=14&type=chunk) - EBIT decreased due to lower spreads[15](index=15&type=chunk) [Cash Flow and 2024 Outlook](index=2&type=section&id=Cash%20Flow%20and%20Outlook) Eastman used **$16 million** in Q1 2024 operating cash and returned **$95 million** to shareholders, reaffirming 2024 adjusted EPS and cash from operations guidance [Cash Flow](index=2&type=section&id=Cash%20Flow) In Q1 2024, **$16 million** cash was used in operating activities, and **$95 million** was returned to stockholders via dividends, prioritizing organic growth and shareholder returns | Cash Flow Item | Amount (in millions) | | :--- | :--- | | Cash used in operating activities | $(16) | | Dividends paid to stockholders | $95 | [2024 Outlook](index=2&type=section&id=2024%20Outlook) Eastman maintains its full-year 2024 adjusted EPS outlook of **$7.25 to $8.00** and **$1.4 billion** cash from operations, anticipating benefits from innovation and Kingsport methanolysis | 2024 Full-Year Outlook | Value | | :--- | :--- | | Adjusted EPS | $7.25 - $8.00 | | Cash from Operations | Approx. $1.4 billion | - The company expects to benefit from its innovation-driven growth model and revenue from the Kingsport methanolysis facility, primarily in the second half of the year[17](index=17&type=chunk) [Financial Tables](index=5&type=section&id=Financial%20Tables) This section presents detailed Q1 2024 financial statements, including Statements of Earnings, sales breakdowns, GAAP to non-GAAP reconciliations, Cash Flows, and net debt [Table 1 – Statements of Earnings](index=6&type=section&id=Table%201%20%E2%80%93%20Statements%20of%20Earnings) In Q1 2024, Eastman reported sales of **$2,310 million**, a decrease from Q1 2023, while net earnings increased to **$165 million** (**$1.39 per diluted share**) | (Dollars in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Sales | $2,310 | $2,412 | | Gross profit | $532 | $529 | | Earnings before interest and taxes | $263 | $246 | | Net earnings attributable to Eastman | $165 | $134 | [Table 2 – Segment and Geographic Sales Information](index=7&type=section&id=Table%202%20%E2%80%93%20Segment%20and%20Geographic%20Sales%20Information) This section details sales performance, showing 5% sequential growth, a 4% year-over-year decline, and varied geographic performance with Asia Pacific growing [Table 2A – Segment Sales Information](index=7&type=section&id=Table%202A%20%E2%80%93%20Segment%20Sales%20Information) Q1 2024 total sales were **$2,310 million**, with Advanced Materials (**$748 million**) and Additives & Functional Products (**$704 million**) being the largest revenue segments | Sales by Segment (Dollars in millions) | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | Advanced Materials | $748 | $742 | $705 | | Additives & Functional Products | $704 | $777 | $640 | | Chemical Intermediates | $523 | $589 | $513 | | Fibers | $331 | $303 | $346 | | **Total Eastman Chemical Company** | **$2,310** | **$2,412** | **$2,207** | [Table 2B – Sales Revenue Change](index=8&type=section&id=Table%202B%20%E2%80%93%20Sales%20Revenue%20Change) Total company revenue decreased **4%** year-over-year due to price, while sequentially increasing **5%** from Q4 2023 driven by volume/mix Sales Revenue Change: Q1 2024 vs. Q1 2023 | Segment | Revenue % Change | Volume / Mix Effect | Price Effect | | :--- | :--- | :--- | :--- | | Advanced Materials | 1% | 4% | (3)% | | Additives & Functional Products | (9)% | (1)% | (8)% | | Chemical Intermediates | (11)% | 2% | (13)% | | Fibers | 9% | 7% | 2% | | **Total Company** | **(4)%** | **3%** | **(7)%** | Sales Revenue Change: Q1 2024 vs. Q4 2023 | Segment | Revenue % Change | Volume / Mix Effect | Price Effect | | :--- | :--- | :--- | :--- | | Advanced Materials | 6% | 6% | (1)% | | Additives & Functional Products | 10% | 8% | 1% | | Chemical Intermediates | 2% | 1% | 1% | | Fibers | (4)% | (7)% | 3% | | **Total Company** | **5%** | **4%** | 0% | [Table 2C – Sales by Customer Location](index=8&type=section&id=Table%202C%20%E2%80%93%20Sales%20by%20Customer%20Location) In Q1 2024, the United States and Canada were the largest market with **$969 million** in sales, while Asia Pacific sales grew year-over-year | Sales by Customer Location (Dollars in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | United States and Canada | $969 | $1,065 | | Europe, Middle East, and Africa | $659 | $709 | | Asia Pacific | $564 | $521 | | Latin America | $118 | $117 | | **Total Eastman Chemical Company** | **$2,310** | **$2,412** | [Table 3 – Non-GAAP EBIT Reconciliations and Margins](index=9&type=section&id=Table%203%20%E2%80%93%20Non-GAAP%20EBIT%20Reconciliations%20and%20Margins) This section reconciles GAAP to non-GAAP adjusted EBIT, showing Q1 2024 total company adjusted EBIT of **$274 million** with an **11.9%** margin, and Fibers achieving **35.3%** [Table 3A - Segment, Other, and Company Non-GAAP EBIT Reconciliations](index=9&type=section&id=Table%203A%20-%20Segment%2C%20Other%2C%20and%20Company%20Non-GAAP%20EBIT%20Reconciliations) Q1 2024 reported company EBIT of **$263 million** was adjusted by **$11 million** for impairments to reach a non-GAAP EBIT of **$274 million** | (Dollars in millions) | Q1 2024 GAAP EBIT | Adjustments | Q1 2024 Adjusted EBIT | | :--- | :--- | :--- | :--- | | **Total Company** | **$263** | **$11** | **$274** | [Table 3B - Segment Non-GAAP EBIT Margins](index=11&type=section&id=Table%203B%20-%20Segment%20Non-GAAP%20EBIT%20Margins) In Q1 2024, the Fibers segment achieved the highest adjusted EBIT margin at **35.3%**, a notable increase from Q1 2023, with total company margin at **11.9%** | Adjusted EBIT Margin | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Advanced Materials | 13.9% | 11.6% | | Additives & Functional Products | 15.5% | 16.0% | | Chemical Intermediates | 3.1% | 7.1% | | Fibers | 35.3% | 31.0% | | **Total Company** | **11.9%** | **11.7%** | [Table 4 – Non-GAAP Net Earnings and EPS Reconciliations](index=12&type=section&id=Table%204%20%E2%80%93%20Non-GAAP%20Net%20Earnings%20and%20EPS%20Reconciliations) This section reconciles GAAP to non-GAAP earnings, showing Q1 2024 adjusted EPS of **$1.61** (down from Q1 2023), with a forecasted full-year adjusted effective tax rate of **16%** [Table 4A – Non-GAAP Earnings Reconciliations](index=12&type=section&id=Table%204A%20%E2%80%93%20Non-GAAP%20Earnings%20Reconciliations) In Q1 2024, GAAP net earnings of **$165 million** (**$1.39/share**) were adjusted to non-GAAP net earnings of **$190 million** (**$1.61/share**) | (per diluted share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | As reported (GAAP) | $1.39 | $1.12 | | Non-GAAP (Adjusted) | $1.61 | $1.63 | [Table 4B - Adjusted Effective Tax Rate Calculation](index=13&type=section&id=Table%204B%20-%20Adjusted%20Effective%20Tax%20Rate%20Calculation) The Q1 2024 effective tax rate was **23%**, with the forecasted full-year adjusted effective tax rate remaining consistent at **16%** | Tax Rate | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Effective tax rate | 23% | 31% | | Forecasted full year adjusted effective tax rate | 16% | 16% | [Table 5 – Statements of Cash Flows](index=14&type=section&id=Table%205%20%E2%80%93%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash used in operating activities was **$16 million**, with **$179 million** used in investing and **$148 million** provided by financing | (Dollars in millions) | First Three Months 2024 | First Three Months 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(16) | $(2) | | Net cash used in investing activities | $(179) | $(252) | | Net cash provided by financing activities | $148 | $357 | | **Cash and cash equivalents at end of period** | **$499** | **$599** | [Table 6 – Total Borrowings to Net Debt Reconciliations](index=14&type=section&id=Table%206%20%E2%80%93%20Total%20Borrowings%20to%20Net%20Debt%20Reconciliations) As of March 31, 2024, Eastman's net debt increased to **$4,581 million** from year-end 2023, calculated from total borrowings of **$5,080 million** less **$499 million** in cash | (Dollars in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total borrowings | $5,080 | $4,846 | | Less: Cash and cash equivalents | $499 | $548 | | **Net debt** | **$4,581** | **$4,298** |
Eastman Chemical: Cyclical But Resilient
Seeking Alpha· 2024-04-25 07:34
Fahroni An essential characteristic of any diversified or actively managed portfolio is the presence of cyclical stocks at various points in market cycles. The structural volatility of the business cycles provides ample opportunity to generate a decent alpha. The following most desirable characteristics we look for in a cyclical stock are to ascertain the resilient nature of the business and management prudence to understand if the company has the right kind of foundations to withstand the cyclical head ...