Eastman(US:EMN)2025-01-30 21:17Financial Performance - Sales revenue for Q4 2024 was $2,245 million, a 2% increase from $2,207 million in Q4 2023, while full-year revenue rose to $9,382 million from $9,210 million, also a 2% increase[3][6] - Adjusted EBIT for Q4 2024 was $305 million, up 37% from $222 million in Q4 2023, and for the full year, it increased to $1,298 million from $1,097 million, a 18% rise[3][4] - Adjusted earnings per diluted share for Q4 2024 were $1.87, a 43% increase from $1.31 in Q4 2023, while full-year adjusted EPS rose to $7.89 from $6.40, a 23% increase[3][4] - Gross profit for Q4 2024 was $554 million, compared to $464 million in Q4 2023, reflecting a 19.4% increase; total gross profit for 2024 was $2,290 million, up 11.1% from $2,061 million in 2023[33] - Net earnings attributable to Eastman for Q4 2024 were $330 million, an increase from $310 million in Q4 2023; total net earnings for 2024 were $905 million, compared to $894 million in 2023[33] - Basic earnings per share for Q4 2024 rose to $2.85, up from $2.63 in Q4 2023; diluted earnings per share increased to $2.82 from $2.61[33] - The total earnings before interest and taxes for the twelve months ended 2024 were $1,278 million, a slight decrease from $1,302 million in 2023[46] - For the twelve months of 2024, the company reported net earnings attributable to Eastman of $905 million, with a diluted earnings per share of $7.67, compared to $894 million and $7.49 in 2023, representing a 1.2% increase in net earnings[56] - Non-GAAP earnings for 2024, excluding non-core and unusual items, were $931 million, with a diluted earnings per share of $7.89, up from $763 million and $6.40 in 2023, indicating a 22% increase[56] Cash Flow and Shareholder Returns - The company generated approximately $1.3 billion in cash from operating activities in 2024, slightly down from $1.4 billion in 2023[5][23] - Approximately $700 million was returned to shareholders in 2024 through dividends and share repurchases[5][23] - The company generated $1,287 million in net cash provided by operating activities for the twelve months of 2024, compared to $1,374 million in 2023, showing a decline of 6.3%[61] - The company reported a cash and cash equivalents balance of $837 million at the end of 2024, up from $548 million at the end of 2023[61] Segment Performance - Advanced Materials segment sales for Q4 2024 were $720 million, a 2% increase from $705 million in Q4 2023; total sales for this segment in 2024 reached $3,050 million, up 4% from $2,932 million in 2023[34] - Additives & Functional Products segment sales increased by 9% in Q4 2024 to $696 million, compared to $640 million in Q4 2023; total sales for 2024 were $2,862 million, a 1% increase from $2,834 million in 2023[34] - Chemical Intermediates segment sales decreased by 2% in Q4 2024 to $503 million, down from $513 million in Q4 2023; total sales for 2024 were $2,134 million, consistent with $2,143 million in 2023[34] - Fibers segment sales declined by 7% in Q4 2024 to $321 million, compared to $346 million in Q4 2023; total sales for 2024 were $1,318 million, up from $1,295 million in 2023[34] Operational Efficiency and Future Projections - The adjusted EBIT margin improved by 350 basis points in Q4 2024 and 190 basis points for the full year, driven by volume/mix growth and operational efficiencies[4][5] - The Kingsport methanolysis facility operated effectively in Q4 2024, positioning it for strong earnings growth in 2025[5][24] - For 2025, the company projects adjusted diluted EPS to be between $8.00 and $8.75, with cash from operations expected to be approximately $1.3 billion[24] - The company aims for $75 million to $100 million in EBITDA growth from its circular platform by 2025[24] - The company plans to reduce structural costs to offset inflation while continuing to invest in growth and capabilities for long-term value creation[24] Tax and Impairments - The effective tax rate for Q4 2024 was reported at -11%, influenced by various adjustments, including a tax benefit from non-core items[53] - The effective tax rate for the twelve months of 2024 was 16%, down from 18% in 2023, indicating a favorable tax environment for the company[56] - The company incurred $51 million in asset impairments and restructuring charges in 2024, compared to $37 million in 2023, reflecting ongoing restructuring efforts[56] Debt and Investments - Total borrowings increased to $5,017 million in 2024 from $4,846 million in 2023, while net debt decreased to $4,180 million from $4,298 million[62] - The company’s investing activities resulted in a net cash outflow of $534 million in 2024, compared to an outflow of $432 million in 2023, indicating increased investment activity[61] Miscellaneous - The company reported a net gain on divested business of $0 in Q4 2024, compared to a loss of $323 million in Q4 2023[33] - Twelve months 2024 included inventory adjustment charges of $7 million related to the planned closure of a production line, impacting overall financial performance[33] - In Q4 2024, the company's earnings before interest and taxes (EBIT) were $349 million, a decrease of 26.8% from $477 million in Q4 2023[46] - The total EBIT excluding non-core and unusual items for Q4 2024 was $305 million, compared to $222 million in Q4 2023, reflecting a 37.5% increase[48] - The adjusted EBIT margin for the Advanced Materials segment in Q4 2024 was 14.9%, up from 9.2% in Q4 2023[48] - The Additives & Functional Products segment reported an adjusted EBIT of $128 million in Q4 2024, with a margin of 18.4%, compared to $67 million and 10.5% in Q4 2023[48] - The Fibers segment achieved an adjusted EBIT margin of 32.1% in Q4 2024, slightly down from 32.7% in Q4 2023[48] - The company experienced a significant decrease in trade receivables, with an increase of $182 million in Q4 2024, compared to a $58 million increase in Q4 2023[61]