Eastman Chemical Q2 Profit Surges - Update

(RTTNews) - Eastman Chemical Co. (EMN) Monday reported a surge in profit for the second quarter, as revenues grew 32 percent reflecting acquisition of Solutia and higher sales volume across most segments. Both earnings and revenues for the quarter surpassed analysts' expectations.

Looking ahead, the company lifted its full-year 2013 earnings outlook.

The Kingsport, Tennessee-based company's second-quarter profit improved to $264 million or $1.69 per share from $179 million or $1.26 last year.

Adjusted earnings for the quarter climbed to $1.80 per share from $1.40 per share last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $1.64 per share for the quarter. Analysts' estimates typically exclude special items.

Eastman Chemical, which makes plastics and synthetic fibers, said revenue for the quarter grew 32 percent $2.44 billion from $1.85 billion last year. Ten analysts had a consensus revenue estimate of $2.39 billion for the quarter.

Sales growth was fueled by the acquisition of Solutia business and higher sales volume across all segments, except adhesives and plasticizers. Eastman Chemical completed its $4.7 billion acquisition of Solutia in July last year.

Additives & functional products division sales rose 54 percent, advanced materials sales were up 98 percent, fibers business were up 14 percent and specialty fluids & intermediates climbed 19 percent. Meanwhile, adhesives & plasticizers dropped 9 percent.

Moving ahead, Eastman Chemical now expect full-year earnings in the range of $6.40 to $6.50 per share, compared to prior estimate of $6.30 to $6.40 per share. Analysts currently estimate earnings of $6.34 per share for the year.

Eastman Chemical anticipate earnings in the second half of the year to be slightly lower than the first half due to normal seasonality of sales volume. The company also continues to expect double-digit earnings growth through 2015.

Chief Executive Jim Rogers said, "We expect our portfolio of specialty businesses to continue to deliver strong earnings despite slow global economic growth, reflecting our leadership positions in key end-markets, the diversity of the end-markets we serve, and our broad geographic footprint."

EMN closed Monday's regular trade at $75.03, up $0.87 or 1.17%, on a volume of 1.19 million shares the NYSE. The stock further gained $2.62 or 3.49% in after hours trade.