Brian Ferguson, Chairman and CEO of Tennessee based largest polyester plastics producer Eastman Chemical Company and other Eastman executives reviewed the company's recent achievements and detailed strategies for continued growth at an investor and analyst meeting held in New York City. The meeting was available to the public by webcast.
Ferguson said that with the company's strong base of earnings, focused growth strategy and financial discipline, Eastman is well positioned for sustainable growth.
Strong Earnings Base In discussing the company's performance and strong foundation, Ferguson noted that in the first half of this year, Eastman achieved record earnings per share, with corporate operating earnings increasing by approximately 130 percent year-over-year. Since the end of 2004, Eastman also reduced its net debt, defined as total borrowings less cash and cash equivalents, by 30 percent to $1.2 billion. Stockholder's equity has increased by over 25 percent over the same period to $1.5 billion.
Focused Growth Strategy As discussed in today's meeting, Eastman is focusing its growth efforts in markets in which it has expertise and deep understanding, primarily in the North America region, where it can leverage its technological innovation built over the company's 85-year history.
Ferguson said that Eastman is on schedule with building its 350,000 metric ton PET polymers manufacturing facility in Columbia, S.C., which will use itsIntegRex technology. The company expects the facility to be fully operational by first quarter 2007. With IntegRex technology, which includes multiple innovations that reduce the number of intermediary process steps needed to produce PET resin, Eastman will have the lowest conversion cost and lowest capital cost per pound of product in North America, where demand for PET polymers is expected to grow between 6 percent and 8 percent annually for the next several years.
marketing@alchempro.com
