Eastman(US:EMN)2025-04-25 16:25Financial Performance - Sales for Q1 2025 were $2,290 million, a slight decrease of 0.9% from $2,310 million in Q1 2024[15] - Gross profit increased to $567 million in Q1 2025, up 6.6% from $532 million in Q1 2024[15] - Net earnings attributable to Eastman rose to $182 million in Q1 2025, compared to $165 million in Q1 2024, reflecting a growth of 10.3%[15] - Basic earnings per share attributable to Eastman increased to $1.58 in Q1 2025, up from $1.40 in Q1 2024, representing a 12.9% increase[15] - The company reported a consolidated EBT of $214 million for Q1 2025, up from $214 million in Q1 2024, indicating consistent earnings before tax[15] - Net earnings for Q1 2025 were $182 million, an increase from $165 million in Q1 2024, representing an increase of 10.3%[91] - Basic earnings per share (EPS) for Q1 2025 were $1.58, compared to $1.40 in Q1 2024, reflecting a growth of 12.9%[91] Assets and Liabilities - Total assets decreased to $14,971 million as of March 31, 2025, down from $15,213 million at the end of 2024[17] - Total liabilities decreased to $9,027 million as of March 31, 2025, down from $9,361 million at the end of 2024[17] - Cash and cash equivalents decreased significantly to $418 million from $837 million at the end of 2024[17] - Total current liabilities decreased from $2,708 million as of December 31, 2024, to $2,269 million as of March 31, 2025, a reduction of 16.3%[17] - Total borrowings amounted to $5,021 million as of March 31, 2025, slightly up from $5,017 million as of December 31, 2024[38] Cash Flow - Net cash used in operating activities was $167 million in Q1 2025, compared to a net cash used of $16 million in Q1 2024[20] - The company reported a net cash used in investing activities of $131 million in Q1 2025, compared to $179 million in Q1 2024[20] Inventory and Expenses - Total inventories increased to $2,116 million as of March 31, 2025, compared to $1,988 million as of December 31, 2024, reflecting a 6.4% increase[34] - Research and development expenses rose to $67 million in Q1 2025, up from $59 million in Q1 2024, indicating a focus on innovation[15] - Capital expenditures for Q1 2025 were $139 million, compared to $147 million in Q1 2024, showing a decrease of 5.4%[107] Environmental Matters - The company’s net environmental reserve for environmental contingencies totaled $282 million as of March 31, 2025, compared to $284 million at December 31, 2024[74] - Estimated future environmental expenditures for undiscounted remediation costs range from $250 million to $503 million as of March 31, 2025[75] - Environmental remediation liabilities decreased from $252 million at December 31, 2024, to $250 million at March 31, 2025[76] - The company does not anticipate that environmental matters will have a material adverse effect on its future financial position or cash flows[73] Shareholder Returns - Cash dividends declared for the first quarter of 2025 were $96 million, reflecting a dividend of $0.83 per share[83] - Cash dividends declared were $0.83 per share for Q1 2025, compared to $0.81 per share in Q1 2024, reflecting a 2.5% increase[92] Derivatives and Hedging - The company entered into fixed-to-fixed cross-currency swaps totaling $300 million in the first quarter of 2025 to hedge against foreign currency fluctuations[52] - The total net derivative assets decreased from $35 million on December 31, 2024, to a net liability of $15 million as of March 31, 2025[61] - The company recognized a net gain of $3 million from foreign exchange derivatives in Q1 2025, compared to a net loss of $5 million in Q1 2024[67] Stock Options and Compensation - Share-based compensation expense recognized in Q1 2025 was $23 million, up from $21 million in Q1 2024, marking a 9.5% increase[99] - Approximately 408 thousand stock options were granted in Q1 2025, compared to 389 thousand in Q1 2024, indicating an increase in stock option grants[100] - The fair value of stock options granted in Q1 2025 was $26.99, up from $21.16 in Q1 2024, reflecting a 27.0% increase[101]