Eastman Chemical Co. reported a surprising increase in earnings
in its most recent quarter, boosted by recent acquisitions.
"Our earnings outlook for the year has improved due to our
record second-quarter earnings," said Mark Costa, Eastman Chemical
chairman and chief executive. "We expect this momentum to continue
into the second half of the year."
Shares of Eastman Chemical, down 19% over the past year, rose
1.7% to $73.33 in after-hours trading.
Sales, though, for the maker of chemicals, plastics and
synthetic fiber rose a disappointing 2.9%, hurt by lower selling
prices in certain segments and an unfavorable shift in currency
rates.
For the second quarter, Eastman reported earnings of $297
million, or $1.98 a share, up from $292 million, or $1.92 a share,
a year earlier. Earnings excluding noncore items were $2.01 a
share, compared with $1.92 a year earlier.
Analysts polled by Thomson Reuters had projected earnings of
$1.83 a share.
Eastman attributed the increased earnings to growth in its
advanced materials segment, earnings from acquired businesses and
savings from lower raw material costs exceeding lower selling
prices.
Sales rose to $2.53 billion from $2.46 billion, but fell below
the average analyst estimate of $2.65 billion. The company cited
weakness in its specialty fluids segment and its fibers
segment.
The company has grown through acquisitions. Last year, it bought
large alkylamines producer Taminco Corp., as well as Commonwealth
Laminating & Coating Inc., a maker of window films and
specialty films.
Operating earnings in advanced materials increased to $135
million, compared with $80 million, a year earlier.
Specialty fluids & intermediates earnings decreased to $83
million, down from $96 million, a year earlier. Operating earnings
for the fibers segment decreased to $91 million, compared with $123
million a year earlier.
Write to Neil Haggerty at neil.haggerty@wsj.com
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