EASTMAN CHEMICAL CO
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 25, 2025
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Summary by Operating Segment
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SUMMARY BY OPERATING SEGMENT
Eastman's products and operations are managed and reported in four operating segments: Advanced Materials ("AM"), Additives & Functional Products ("AFP"), Chemical Intermediates ("CI"), and Fibers. For additional financial and product information for each operating segment, see Part I, Item 1, "Business - Business Segments" and Part II, Item 8, Note 20, "Segment and Regional Sales Information", in the Company's 2024 Annual Report on Form 10-K.
Advanced Materials Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2025 · 2024 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $719 | $748 | $(29) | (4)% | ||
| Volume / product mix effect | (7) | (1)% | ||||
| Price effect | (13) | (2)% | ||||
| Exchange rate effect | (9) | (1)% | ||||
| Earnings before interest and taxes | $116 | $104 | $12 | 12% | ||
Sales revenue decreased in first quarter 2025 compared to first quarter 2024 primarily due to lower selling prices across the segment. Lower sales volume was driven by weakened demand in the automotive and building and construction end-markets, partially offset by growth in the specialty plastics product line.
EBIT increased in first quarter 2025 compared to first quarter 2024 primarily due to $7 million favorable sales volume mix and $8 million lower SG&A expenses, partially offset by a $5 million unfavorable shift in foreign currency rates.
Additives & Functional Products Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2025 · 2024 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $733 | $704 | $29 | 4% | ||
| Volume / product mix effect | 15 | 2% | ||||
| Price effect | 24 | 3% | ||||
| Exchange rate effect | (10) | (1)% | ||||
| Earnings before interest and taxes | $137 | $109 | $28 | 26% | ||
| Asset impairments, restructuring, and other charges, net | 4 | — | 4 | |||
| Earnings before interest and taxes excluding non-core item | 141 | 109 | 32 | 29% | ||
Sales revenue increased in first quarter 2025 compared to first quarter 2024 primarily due to higher selling prices, driven by cost pass-through contracts, and higher sales volume, primarily in the coatings additives and specialty fluids product lines.
EBIT in first quarter 2025 included asset impairments, restructuring, and other charges, net of $4 million related to the closure of a heat-transfer fluids production line at a specialty fluids and energy facility in North America. For more information see Note 11, "Asset Impairments, Restructuring, and Other Charges, Net" to the unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
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Excluding this non-core item, EBIT increased in first quarter 2025 compared to first quarter 2024 primarily due to $13 million higher selling prices, net of higher raw material and energy costs, $11 million higher sales volume, and $5 million improved asset utilization.
Chemical Intermediates Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2025 · 2024 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $545 | $523 | $22 | 4% | ||
| Volume / product mix effect | 8 | 2% | ||||
| Price effect | 18 | 3% | ||||
| Exchange rate effect | (4) | (1)% | ||||
| Earnings before interest and taxes | $19 | $16 | $3 | 19% | ||
Sales revenue increased in first quarter 2025 compared to first quarter 2024 due to higher selling prices and higher sales volume, partially offset by an unfavorable shift in foreign currency rates. Higher selling prices and higher sales volume were primarily due to more favorable market conditions in some olefins-based products.
EBIT increased in first quarter 2025 compared to first quarter 2024 primarily due to $15 million higher selling prices and lower distribution costs, net of higher raw material and energy costs, partially offset by $8 million unfavorable product mix and $3 million higher manufacturing costs.
Fibers Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2025 · 2024 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $288 | $331 | $(43) | (13)% | ||
| Volume / product mix effect | (40) | (12)% | ||||
| Price effect | (2) | (1)% | ||||
| Exchange rate effect | (1) | —% | ||||
| Earnings before interest and taxes | $88 | $117 | $(29) | (25)% | ||
Sales revenue decreased in first quarter 2025 compared to first quarter 2024 primarily due to lower sales volume attributed to continued customer inventory destocking in the acetate tow product line and the impact of a discontinued product.
EBIT decreased in first quarter 2025 compared to first quarter 2024 primarily due to $25 million lower sales volume.
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Other
| First Quarter | ||
|---|---|---|
| 2025 | 2024 | |
| (Dollars in millions) | ||
| Sales | $5 | $4 |
| Loss before interest and taxes | ||
| Growth initiatives and businesses not allocated to operating segments | $(51) | $(68) |
| Pension and other postretirement benefits income (expense), net not allocated to operating segments | 1 | 2 |
| Asset impairments, restructuring, and other charges, net | (5) | (11) |
| Other income (charges), net not allocated to operating segments | (3) | (6) |
| Loss before interest and taxes | $(58) | $(83) |
| Asset impairments, restructuring, and other charges, net | 5 | 11 |
| Loss before interest and taxes excluding non-core items | (53) | (72) |
Sales and costs related to growth initiatives, including the cellulosics biopolymer and circular economy platforms, R&D costs, certain components of pension and other postretirement benefits, and other expenses and income not identifiable to an operating segment are included in "Other". First quarter 2024 also included pre-production costs for the Kingsport methanolysis facility.
EBIT in first quarter 2025 included profitability improvement initiatives. First quarter 2024 included severance primarily in accordance with foreign regulatory requirements as a result of cost reduction initiatives in fourth quarter 2023. For more information, see "Non-GAAP Financial Measures" in this MD&A. For more information regarding asset impairments, restructuring, and other charges, net, see Note 11, "Asset Impairments, Restructuring, and Other Charges, Net", to the unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
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