KINGSPORT, Tennessee (WJHL) — Eastman Chemical Co. reported fourth-quarter and full-year earnings on Thursday, both of which were lower than last year. $1.40.
In its 2023 forecast, CEO Mark Costa said the company would save more than $200 million in costs and “reduce” inventory, without mentioning potential labor cost implications.
In a year where the “steam line failure” in January 2022 reduced post-reimbursement earnings by $39 million, Eastman adjusted earnings of $1.33 billion, bringing the 2021 total to $1.64 billion. 18% lower. The decline comes even though $10.6 billion in sales is slightly ahead of his $10.5 billion in 2021.
CEO Marc Costa said: in a news release.
Adjusted earnings, excluding “non-core and unusual items,” were $7.88 per share for the full year, up from $8.85 for the full year 2021.
One of the 2022 adjustments is listed in “Steam Pipe Accidents”, and even after the insurance payout, the company shook the ground in a large radius in late January and installed pipe insulation containing asbestos in cars and homes within the radius. It showed that it lost $39 million from the blowout failure. of some blocks.
Eastman saw lower demand for its products over the course of the year (a 3% decline in sales volume), which was even more pronounced in the fourth quarter. For the full year, earnings declined in the Advanced Materials and Chemical Intermediates segment and remained flat in the Textiles segment, while earnings increased in the Additives and Performance Products segment.
Costa emphasized that new business revenue growth is on track despite challenges. He also noted the year’s progress in the company’s “circular platform,” which is rooted in molecular recycling technology.
“(T)This continues to be an exciting opportunity for Eastman to create significant value as a leader in providing solutions to the global plastic waste crisis,” said Costa. “We are confident in the resilience of our portfolio and the sustainability of our strong cash flow going forward.”
On a full-year basis, operating activity was just over half of net cash in 2021, from $975 million to $1.6 billion in 2021.
Costa said 2023 will be a challenging year for the global economy. He said Eastman is likely to practice “aggressive inventory reductions.” This is not about selling off existing inventory while producing a large amount of new products before a “moderate amount of recovery” in the second half of this year.
“In this context, we are taking actions to reduce our manufacturing, supply chain and non-manufacturing costs by a combined total of more than $200 million by 2023.
Eastman expects adjusted earnings per share growth of 5% to 15% in 2023, with full-year EPS of $8.28 to $9.06.