On October 27, Eastman Chemical Company announced that its diluted third-quarter earnings per share for the third quarter of 2017 were $ 2.22, compared with $ 1.56 for the third quarter of 2016. Adjusted diluted earnings per share for the third quarter of 2017 At $ 2.19, compared with $ 1.86 in the same period of 2016.
Mark Costa, Chairman and CEO of Eastman, said: "Our adjusted EPS once again achieved strong year-on-year growth, demonstrating the strength of our current business portfolio and our ability to leverage our business strengths to achieve steady growth. The product business continued its strong performance, especially in the business of additives and functional materials, which saw significant growth in recent weeks as the United States experienced hurricanes and coal gasification plant incidents at its base in Kingsport, Professionalism Our ability to minimize damage and impact in the face of these challenges is a reflection of Eastman's unique strengths in base scale and vertical integration and underscores the Eastman team's exceptional professionalism and Determination Third Quarter 2017 vs. Third Quarter 2016 Results by Business
Additives and functional materials -Sales of most product lines rose, driving sales revenue growth. Sales also contributed to increased sales growth.
Special materials -The increase in sales revenue was due to the increase in the sales volume of high-value products and the improvement of the product mix, and the operating profit was in line with the record-breaking results in the same period of last year.
Chemical intermediates -The increase of sales price led to the increase of sales revenue.The increase of sales price was mainly attributed to the increase of the price of raw materials and continuous improvement of the competitive environment.The increase of sales revenue was mainly attributed to the higher selling price, the decrease of the cost of commodity hedging and the decrease of operation cost However, higher raw material and energy costs have also adversely affected operating profit to a certain extent.
fiber- Decline in sales revenue was mainly due to the decrease of sales price, especially acetate tow, which was mainly due to the further decrease of industrial capacity utilization rate. The lower sales price led to the decrease of operating profit of fiber business, but the recent implementation The adjustment measures have reduced operating costs and achieved remarkable results.
cash flow In the third quarter of 2017, Eastman's operating activities generated a cash flow of $ 528 million, mainly due to solid net income, a decrease of $ 187 million in total borrowings in the third quarter of 2017 and a total share buyback of 1 Hundreds of millions of dollars.
In the first nine months of 2017, Eastman's operations generated over $ 1 billion in cash flow and $ 573 million in free cash flow (cash flow from operating activities minus capital expenditures). In addition, the company Returned $ 498 million to shareholders, of which $ 275 million was for share repurchases and $ 223 million for quarterly dividends. Eastman is expected to achieve its goal of free cash flow of approximately $ 1 billion by 2017.
Kingsport base gas operations Eastman has previously announced that on 4 October 2017, an operational incident occurred in the area of the coal gasification plant at Eastbourne headquarters in Kingsport, resulting in a disruption of production operations. The incident resulted in no serious injuries or Environment All other production facilities have been resumed normal operation except for coal gasification plants and thanks to the unique advantages of base size and consolidation, maintenance work has made good progress and other alternative processes have been adopted to ensure that all downstream derivatives facilities 2010. Eastman said it expects coal gasification plants to resume operation by the end of the quarter, all of which will help the full recovery of production of acetyl chemicals and other derivatives lines and is expected to resume normal operation in early 2018.
The company is assessing the financial impact of the event and expects the event's impact on operating revenue to be between $ 50 billion and $ 100 million.The estimated cost impact for the fourth quarter of 2017 is estimated to be about $ 100 million and some are expected to be driven by Insurance claims offset in the first half of 2018.
Looking ahead Looking forward to 2017 full year results, Mark Costa said: 'We achieved strong performance growth this year, especially in the third quarter performance .Although the global business environment is still full of uncertainty, our high-value innovative products Will continue to achieve significant growth.Financial allocation and cost management will continue to promote revenue growth.Therefore, in addition to the financial impact of the Kingsport production event, the company expects to achieve a higher level of the previously set 2017 adjustment Earnings per share increase of 10% to 12% compared to 2016. '