Eastman Chemical Q4 Adj. Profit Beats View, But Outlook Disappoints

(RTTNews) - Eastman Chemical Co. (EMN) on Thursday reported a 95 percent plunge in profit for the fourth quarter from last year, as higher revenues were more than offset by one-time charges.

However, adjusted earnings per share for the quarter beat analysts' expectations. Looking ahead, the company forecast earnings for fiscal 2015 below Street estimates.

Kingsport, Tennessee-based Eastman Chemical's fourth-quarter net earnings were $16 million or $0.11 per share, down from $346 million or $2.22 per share in the year-ago period.

The latest quarter's results include a loss of $1.35 per share related to mark-to-market pension and other postretirement benefit plans, additional costs of acquired inventories of $0.07 per share, and acquisition transaction costs of $0.11 per share.

The year-ago period results include, among other items, a gain of $1.15 per share on mark-to-market pension and other postretirement benefit plans.

Excluding items, adjusted earnings for the latest quarter were $1.64 per share, compared to $1.35 per share last year. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.52 per share for the quarter. Analysts' estimates typically exclude special items.

Sales revenue for the quarter grew 4 percent to $2.35 billion from $2.27 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.34 billion for the quarter.

For fiscal 2014, net earnings attributable to Eastman stockholders declined to $751 million or $4.97 per share from $1.17 billion or $7.44 per share in the prior year. Adjusted earnings from continuing operations were $7.07, compared to $6.44 per share last year.

Sales revenue for the year grew 2 percent to $9.53 billion from $9.35 billion in the previous year.

Street expected the company to earn $6.94 per share for the year on revenues of $9.56 billion.

Looking ahead to fiscal 2015, Eastman Chemical forecast adjusted earnings to be similar to 2014, when it reported $7.07 per share. Analysts expect earnings of $7.45 per share for the year.

Mark Costa, chairman and CEO said, "We enter 2015 well positioned to benefit from our strong portfolio of specialty businesses, including the accretive acquisitions we completed in 2014... In the short-term, we also face challenges including continued global economic uncertainty, volatile oil prices, and the recent strengthening of the U.S. dollar."

In December, Eastman acquired Taminco Corp, a specialty chemical company, and Commonwealth Laminating & Coating Inc, a specialty films business.

EMN closed Thursday's trading at $68.64, down $0.01 or 0.01 percent on a volume of 2.68 million shares. In after-hours, the stock gained $1.36 or 1.98 percent to $70.00.