Eastman Announces Second-Quarter 2014 Financial Results

KINGSPORT, Tenn., July 28, 2014 - Eastman Chemical Company (NYSE:EMN) today announced earnings from continuing operations, excluding non-core or non-recurring items, of $1.92 per diluted share for second quarter 2014 versus $1.80 per diluted share for second quarter 2013. Reported earnings from continuing operations were $1.92 per diluted share for second quarter 2014 versus $1.69 per diluted share for second quarter 2013. For detail of the excluded items and reconciliation to reported company and segment earnings, see Tables 3 and 4.

"We delivered solid results across our portfolio in the second quarter despite a number of challenges," said Mark Costa, chairman and CEO. "We continue to focus on growth through Eastman-specific actions, including serving growing markets with capacity additions, improving our mix with higher-value products, and disciplined capital allocation. As a result, Eastman remains well positioned for a fifth consecutive year of strong earnings growth." See the second paragraph under "Outlook" for the items excluded from annual earnings comparisons.

(In millions, except per share amounts)	2Q2014	2Q2013
Sales revenue	$2,460	$2,440
Earnings per diluted share from continuing operations*	$1.92	$1.69
Earnings per diluted share from continuing operations excluding non-core or non-recurring items**	$1.92	$1.80
Net cash provided by operating activities	$419	$362

*For a description of earnings from discontinued operations, see Table 1.
**For reconciliation to reported company and segment earnings, see Tables 3 and 4. 

Corporate results 2Q 2014 versus 2Q 2013

Sales revenue was $2.5 billion, a slight increase compared with second quarter 2013. Operating earnings for second quarter 2014 were $436 million compared with $428 million for second quarter 2013. Excluding the items described in Tables 3 and 4, second-quarter 2014 operating earnings were $441 million compared with $454 million for second quarter 2013, with the decline primarily due to lower Specialty Fluids & Intermediates segment earnings. The previously announced unplanned shutdown at the Kingsport, Tenn., facility negatively impacted second-quarter 2014 operating earnings by approximately $10 million.