KINGSPORT — Eastman Chemical Co. reported higher third-quarter revenues and operating earnings Thursday compared to the third quarter of 2012.
“Our solid third quarter earnings keep us on track for a fourth consecutive year of double-digit earnings growth despite continued global economic uncertainty and volatile raw material and energy costs,” Jim Rogers, Eastman’s chairman and CEO, said in a prepared release. “Cash generation was also strong in the quarter, and we expect to continue to generate strong free cash flow for years to come.”
Sales revenue for the quarter totaled $2.3 billion, a 3 percent increase over last year’s third quarter that was primarily the result of higher sales volume in the Additives & Functional Products and Advanced Materials segments. The performance was partially offset by lower sales revenue in the Adhesives & Plasticizers segment.
Operating earnings for the quarter were $479 million compared to $263 million in the third quarter of 2012. Reported earnings were $1.97 per diluted share in the quarter compared to $0.99 per diluted share in last year’s third quarter.
“Our businesses have delivered strong results to date, and we expect that to continue in the fourth quarter,” Rogers said. “However, the fourth quarter is normally seasonally slower and the pace of global economic growth is uncertain. We also anticipate continued challenges in the Adhesives & Plasticizers segment as well as higher raw material and energy costs. We are therefore adjusting our full year 2013 expectation for earnings per share to between $6.30 and $6.40.”
Eastman’s stock closed Thursday at $82.18 per share, down 0.42 from its morning opening.
Read more in Friday's print edition of the Times-News or in the expanded electronic edition.