Eastman Chemical Sees a $54 Million Loss in Q4; Adjusted EPS In-Line with Estimates (EMN)

Eastman Chemical Sees a $54 Million Loss in Q4; Adjusted EPS In-Line with Estimates (EMN)


Eastman Chemical Company (EMN) said late Thursday that it posted a loss in the fourth quarter. However, adjusted net income was in-line with the Wall Street estimates and the company raised its 2013 EPS guidance.

The Kingsport, Tennessee-based company reported a loss of $54 million, or 35 cents per share, in the fourth quarter. In the same quarter a year ago the company posted a profit of $12 million, or 12 cents per share.

The loss in the quarter were partially attributed to various charges and losses totaling over $350 million due to pension liabilities, restructuring costs, and the integration cost of the recently acquired Solutia.

Adjusting for these one-time items, earnings for the quarter came in at $1.19 per share versus 78 cents per share in the previous year. According to Thomson Reuters, this was in line with analysts’ estimates.

Revenue in the quarter was $2.17 billion compared to a revenue of $1.72 billion in the same quarter a year ago. Analysts were predicting a revenue of $2.24 billion.

The company also announced that it was increasing its 2013 EPS estimates. The company now expects adjusted earnings to be in a range of $6.30 and $6.40 per share. Analysts forecast an EPS of $6.32 in 2013.

“With our world-class technology platforms and leading positions in attractive end markets, we are well positioned to generate strong earnings growth in 2013. We expect the continued integration of Solutia, capacity expansions serving customers in growing end-markets, and the increased benefit of producing versus purchasing olefins will positively impact results. However, there continues to be global economic uncertainty, particularly the timing of a recovery in Europe,” said Eastman Chemical CEO Jim Rogers

Eastman Chemical shares were down 65 cents, or -0.91%, during pre-market trading on Friday. The stock is up +41.14% over the past year.

The Bottom Line
Shares of Eastman Chemical (EMN) have a dividend yield of 1.69% based on last night’s closing price of $71.15.

Eastman Chemical Company (EMN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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