Eastman Chemical reports loss in revenues

Eastman Chemical Company, a manufacturer and marketer of chemicals, fibers and plastics, has reported revenues of $0.03 per diluted share from continuing operations for first quarter 2009  compared to revenues of $1.46 per diluted share for first quarter 2008. The first quarter 2009 results include a restructuring charge of $26m for the previously announced reduction in force of approximately 300 people.

Sales revenue for the first quarter 2009, was $1.1 billion or 35% decrease compared to first quarter of previous year. Sales revenue declined due to a decline in sales volume of 19% primarily attributed to the global recession and lower selling prices.

The company reported a decline in the operating earnings to $25m compared to operating earnings of $168m in first quarter 2008. Operating earnings in all segments recorded a decline except Fibers, which showed an increase in sales revenue by 2% and operating earnings of $73m in first quarter 2009.

In other segmental results for first quarter 2009: Coatings, Adhesives, Specialty Polymers and Inks (CASPI) posted a decline in sales revenue by 36% and operating earnings to $21m. Performance Chemicals and Intermediates posted a decline in sales revenue by 49% and operating earnings to $3m. Performance Polymers and Specialty Plastics also recorded a decline in the sales revenue by 42% and 30% and an operating earnings of $21m and $13m respectively.

Jim Rogers, to be CEO of Eastman Chemical Company, said: While our capacity utilization improved on a sequential basis to slightly above 70 % in the first quarter, the global economic environment remains challenging and visibility for demand continues to be limited. In response to the difficult economic conditions, we have taken a number of cost reduction actions that will positively impact our financial results throughout the year.”