Eastman Announces Fourth-Quarter and Full-Year 2014 Financial Results

  
KINGSPORT, Tenn., Jan. 29, 2015 - Eastman Chemical Company (NYSE:EMN) today announced earnings, excluding non-core or non-recurring items, of $1.64 per diluted share for fourth quarter 2014 versus $1.35 per diluted share for fourth quarter 2013. Reported earnings were $0.11 per diluted share in fourth quarter 2014 versus $2.22 per diluted share in fourth quarter 2013. For detail of the excluded items and reconciliation to reported company and segment earnings, see Tables 3 and 4.

"We delivered our fifth consecutive year of strong earnings growth in 2014," said Mark Costa, chairman and CEO. "To achieve these outstanding results, we leveraged our world class technology platforms to drive improved product mix through innovation, sustained and expanded our advantaged market positions, and derived benefit from our advantaged cost positions. We also completed four attractive acquisitions that improve the quality of our portfolio and position us for strong long-term earnings growth." See the second paragraph under "Outlook" for the items excluded from annual earnings comparisons.

(in millions, except per share amounts)	4Q14	4Q13	FY14	FY13
Sales revenue	$2,349	$2,265	$9,527	$9,350
Earnings per diluted share from continuing operations	$0.11	$2.22	$4.95	$7.44
Earnings per diluted share from continuing  operations excluding non-core or non-recurring items*	$1.64	$1.35	$7.07	$6.44
Net cash provided by operating activities	$455	$503	$1,403	$1,297

*For reconciliation to reported company and segment earnings, including mark-to-market pension and postretirement benefit plans loss in 2014 and gain in 2013, see Tables 3 and 4.

Corporate Results 4Q 2014 versus 4Q 2013

Sales revenue increased 4 percent compared with fourth quarter 2013. Excluding the items described in Tables 3 and 4, operating earnings for fourth quarter 2014 were $362 million compared with $329 million for fourth quarter 2013 primarily due to higher operating earnings across the company. Reported fourth-quarter 2014 operating earnings were $27 million compared with $562 million for fourth quarter 2013.

In December 2014 Eastman acquired Taminco Corporation, a global specialty chemical company, and Commonwealth Laminating & Coating, Inc., a specialty films business. In June 2014, the Company acquired BP plc's global aviation turbine engine oil business. Results of the acquired Taminco and Commonwealth businesses and of the acquired aviation turbine oil business following the acquisitions are included in the Company's fourth-quarter 2014 financial results.