VOL. 128 | NO. 148 | Wednesday, July 31, 2013
Eastman Chemical Second-Quarter Net Income Jumps 47 Percent
KINGSPORT, Tenn. (AP) – Eastman Chemical Co. said Tuesday its second-quarter net income jumped 47 percent, boosted by sales contributions from a recent acquisition.
The results beat Wall Street predictions and the chemicals company also raised its profit prediction for the full year. Its shares rose to an all-time high following release of the results.
The Kingsport, Tenn.-based company earned $264 million, or $1.69 per share, up from $179 million, or $1.27 per share, in the 2012 second quarter.
Excluding costs related to the acquisition, restructuring charges and other one-time items, Eastman said its adjusted profit was $1.80 per share.
Revenue rose 32 percent to $2.44 billion from $1.85 billion last year.
Analysts, on average, expected a profit of $1.63 per share on $2.39 billion in revenue, according to FactSet.
Eastman said the results were boosted by its 2012 acquisition of the specialty chemical company Solutia. It also saw gains from higher sales volumes at most of its businesses and higher capacity utilization that lowered unit costs.
The company said it expects its specialty businesses to continue to deliver strong profit growth, despite the still sluggish global economy. It boosted its full-year profit prediction by 10 cents to a range of $6.40 to $6.50 per share.
Analysts were expecting a profit of $6.33 per share for the year, on average, with estimates ranging from $6.20 to $6.40.
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