Eastman's fiber division's external sales earnings up 13%
29 Jul '05
6 min read
Fibers – External sales revenue increased by 13 percent due to increased sales volume and higher selling prices that more than offset an unfavorable shift in product mix due to higher sales volume for acetyl chemicals and for acetate yarn. The segment's operating earnings were up due to both higher sales volume and higher selling prices that more than offset increased raw material and energy costs.
Developing Businesses Division's external sales revenue for second quarter 2005 was $3 million compared with $37 million for second quarter 2004. The decrease in sales revenue was primarily due to the shutdown of Cendian Corporation, which resulted in the termination of third-party contracts and the reintegration of Cendian's logistics functions into Eastman. Operating results declined due to asset impairments and restructuring charges of $9 million related to the Cendian actions.
Cash Flow Eastman generated $107 million in cash from operating activities in second quarter 2005 compared with cash from operating activities of $216 million in second quarter 2004. The decline was due to increased working capital and contributions to the company's U.S. defined benefit pension plans.
In the second half of 2005, the company expects to increase cash from operating activities as working capital is reduced. During the second quarter, the company completed the sale of its investment in Genencor for approximately $417 million in net cash proceeds after tax.
marketing@alchempro.com
