Eastman released its financial report for the seco

Eastman released its financial report for the second quarter of 2017

Eastman released its financial report for the second quarter of 2017

July 31, 2017

[China paint information]

Eastman Chemical Company (nyse:emn) announced that its diluted reported earnings per share in the second quarter of 2017 was $2 and $1.71 in the second quarter of 2016. The adjusted diluted earnings per share in the second quarter of 2017 was $1.98, compared with $1.68 in the same period in 2016

mark Costa, chairman and CEO of Eastman, said: "Our adjusted earnings per share increased by 18% year-on-year, indicating that the company's current business portfolio is robust, has significant transformation advantages, and business integration is creating value. Our innovation led strategy has brought strong earnings growth, thanks to the continuous rise in sales of special products and the rise in the sales price of intermediate products. In the current environment of slow global economic growth, we continue to show the advantages of our business portfolio At the same time, we are full of confidence in the ability to generate strong cash flow centered on inspection and adjustment in the future. "

performance comparison of businesses in the second quarter of 2017 and the second quarter of 2016

additives and functional materials - the sales volume and sales price of most product lines have increased, driving the growth of sales revenue. The rise in raw material prices and energy costs offset the positive factors brought about by the rise in sales volume and sales prices, resulting in a decrease in operating income

special materials - the growth of sales revenue is due to the sales growth of the whole business, including Eastman tritantm copolyester, saflex sound insulation intermediate film, high-performance film and other high-value innovative products. The growth of operating income is mainly attributed to the rise in sales and the advantages of fixed costs, but the rise in raw materials and energy costs has played a certain inhibitory role

engineering plastics in key markets will grow at a growth rate of about 5%. Chemical intermediates - the rise in sales prices has driven the growth of sales revenue. The rise in sales prices is mainly due to the increase in raw material prices and the continuous improvement of the competitive environment. The increase in operating income is mainly due to higher sales prices, lower commodity hedging costs, and the reduction in maintenance costs, which are an important part of the experimental machine. However, the higher raw materials and energy costs also have an adverse impact on operating income to a certain extent

fiber - sales revenue decreased, mainly due to the impact of lower sales prices, especially acetic acid tow. The decline in the sales price of acetic acid tow is mainly due to the further reduction in the industry's capacity utilization. Lower sales prices have led to a decline in the operating income of the fiber business, but the recent adjustment measures have reduced operating costs and achieved remarkable results

cash flow

in the second quarter of 2017, Eastman's operating activities generated a cash flow of $431million, mainly due to robust net income, but the rise in working capital had a certain impact on it. The total share repurchases in the second quarter of 2017 amounted to US $100million. The available cash flow will be preferentially used to pay quarterly dividends, repay debts, invest in various business growth plans and repurchase shares

mark Costa, chairman and CEO of Eastman

outlook

outlook for the full year of 2017, Mark Costa said: "We achieved strong earnings per share growth in the first half of the year. Although the global business environment is still full of uncertainty, we still expect high-value innovative products to continue to achieve significant growth according to different materials. In addition, we will continue to implement strict cost management, standardize capital allocation, and continue to promote earnings growth, so as to offset the adverse impact of fiber and ethylene prices. Despite the challenges, we are on the top We have achieved steady growth in the past six months. At the same time, we are full of confidence in a series of measures to achieve growth. We expect the adjusted EPS growth in 2017 to reach%, higher than the growth target of% in 2016. "