Eastman Announces Fourth-Quarter and Full-Year 2014 Financial Results - Seite 2

Segment Results 4Q 2014 versus 4Q 2013

Additives & Functional Products - Sales revenue increased as sales of products of the acquired Taminco specialty amines and crop protection businesses and higher coatings products sales volume were partially offset by lower rubber additives products sales revenue due to an unfavorable shift in foreign currency exchange rates. The higher coatings sales volume was attributed to strengthened demand in key end-markets, particularly building and construction and transportation. Excluding non-core or non-recurring items in fourth quarter 2014, operating earnings increased due to earnings of the acquired Taminco businesses.

Adhesives & Plasticizers - Sales revenue decreased primarily due to lower adhesives resins sales volume which was primarily the result of limited raw material availability and lower plasticizers selling prices partially offset by higher adhesives resins selling prices. Operating earnings increased primarily due to higher adhesives resins selling prices, lower raw material and energy costs, and lower operating costs that included targeted cost reductions, partially offset by costs of the planned shutdown of an olefins cracking unit at the Longview, Texas site.

Advanced Materials - Sales revenue increased slightly as strong volume growth for premium products, including Eastman Tritan^(TM) copolyester, interlayers with acoustic properties, and window films, was offset by lower core copolyester products selling prices and an unfavorable shift in foreign currency exchange rates. The premium product sales growth was attributed to continued market adoption. The lower selling prices were primarily due to lower raw material and energy costs, particularly for paraxylene. Excluding non-core or non-recurring items, operating earnings increased primarily due to higher sales volume and improved product mix.

Fibers - Sales revenue increased slightly as higher acetate tow selling prices and higher acetate flake sales volume to Eastman's China acetate tow joint venture were largely offset by lower acetyl chemicals sales volume. Operating earnings increased as higher selling prices more than offset lower sales volume and higher unit costs due to lower acetate tow capacity utilization.

Specialty Fluids & Intermediates - Sales revenue increased due to sales of products of the acquired aviation turbine oil and Taminco functional amines businesses. Sales revenue was negatively impacted by lower selling prices for olefin-based intermediates and heat transfer fluids, and lower volume due to the Longview, Texas olefins cracking unit shutdown. Excluding non-core or non-recurring items in fourth quarter 2014, operating earnings declined primarily due to costs of and lower sales volume resulting from the olefins cracking unit shutdown and lower selling prices, partially offset by lower raw material and energy costs and earnings from acquired businesses.