Eastman's fiber division's external sales earnings up 13%
29 Jul '05
6 min read
The year-over-year increase was due primarily to higher selling prices, higher sales volume from continuing product lines and decreased costs attributed to ongoing cost reduction efforts. Operating earnings increased in second quarter 2005 despite raw material and energy costs that were more than $100 million over second-quarter 2004 levels.
Sales revenue for second quarter 2005 was $1.75 billion, a 5 percent increase over second quarter 2004. The increase in sales revenue was attributed to higher selling prices throughout the company and increased sales volume from continuing product lines.
Second-quarter 2004 sales revenue included sales revenue from restructured, divested and consolidated product lines in the coatings, adhesives, specialty polymers and inks (CASPI) segment. Excluding sales from those product lines for second quarter 2004, year-over-year sales revenue increased by 18 percent and sales volume increased by 5 percent.
Eastman Division Results 2Q 2005 versus 2Q 2004 Coatings, Adhesives, Specialty Polymers and Inks – External sales revenue decreased by 32 percent as a result of the divestiture of certain businesses and product lines in third quarter 2004. Sales revenue for continuing product lines in the segment increased by 15 percent primarily due to higher selling prices particularly for cyclical commodity product lines.
Operating results improved due to higher selling prices and a continued focus on more profitable businesses and product lines that more than offset higher raw material and energy costs. Included in second-quarter 2005 and second-quarter 2004 results were asset impairments and restructuring charges of $1 million and $69 million respectively.
marketing@alchempro.com
