Eastman Chemical Company announced earnings of $1.37 per diluted share for second quarter 2006 versus earnings of $2.51 per diluted share for second quarter 2005. Excluding the items described in the table below, second-quarter 2006 earnings were $1.40 per diluted share, while second-quarter 2005 earnings were $1.59 per diluted share. For reconciliation to reported earnings per diluted share, see Table 5 in the accompanying second-quarter 2006 financial tables.
"In the second quarter, we continued to deliver strong earnings reflecting the value of our broad base of businesses," said Brian Ferguson, chairman and CEO. "These results are despite high and volatile raw material and energy costs as well as continued challenging conditions for global PET polymers product lines."
Sales revenue for second quarter 2006 was $1.9 billion, a 10 percent increase over second quarter 2005. The increase in sales revenue was due to higher sales volume and higher selling prices.
Operating earnings in second quarter 2006 were $190 million compared with operating earnings in second quarter 2005 of $203 million. Excluding asset impairments and restructuring charges for both periods, operating earnings were $193 million in second quarter 2006 compared with $213 million in second quarter 2005. The year-over-year decline was due primarily to lower operating earnings in the performance polymers segment. The company's second-quarter 2006 raw material and energy costs increased by approximately $125 million compared with second quarter 2005.
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