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Eastman Chemical Q1 profit up 56% helped by Solutia Acquisition

May 08/2013

MOSCOW (MRC) -- Eastman Chemical Co.'s first-quarter earnings rose 56% as the chemical and materials manufacturer was helped by a recent acquisition, according to The Wall Street Journal

The company, which makes a variety of chemicals, plastics and synthetic fibers, has posted lower profit recently, hurt by costs related to acquisitions and restructuring. Last July, it finalized the roughly USD3.38 billion takeover of peer specialty-chemicals firm Solutia Inc., a deal aimed at expanding Eastman's global presence and stabilizing margins. 

For the latest quarter, Eastman posted a profit of USD247 million, or USD1.60 a share, up from USD158 million, or USD1.12 a share a year earlier. Excluding Solutia-related costs and other impacts, earnings from continuing operations increased to USD1.62 a share, from USD1.22. 

Revenue increased 27% to USD2.31 billion, helped by the Solutia acquisition. 

Analysts surveyed by Thomson Reuters were expecting per-share earnings of USD1.57 a share on revenue of USD2.38 billion. 

Gross margin widened to 26.7% from 23.7%. 

Eastman's biggest revenue generator, the specialty fluids and intermediates segment, saw sales grow 6.7%. 

Sales in the advanced materials unit doubled, benefitting from the acquired Solutia interlawyers and performance films product lines and strong demand in Asia.

We remind that, as MRC informed previously, in early October 2012, Eastman Chemical Company announced  the addition of new PET polymer Aspir to its portfolio of resins.
Author:Margaret Volkova
Tags:PET, Eastman Chemical, Solutia Inc., USA.
Category:General News
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