Eastman Announces Second-Quarter 2019 Financial Results - Seite 3

Free cash flow*                                                                        $330                                  $342

*For non-core and unusual items (including related to the previously reported coal gasification incident) excluded from adjusted earnings and for adjusted provision for income taxes, calculation of free cash flow and of segment adjusted EBIT margins, and reconciliations to reported company and segment earnings and to cash provided by operating activities, see Tables 1, 3A, 3B, 4A, 4B, 5A and 5B.

"In the second quarter, we continued to face challenging global economic conditions resulting from trade issues impacting consumer discretionary markets such as transportation and consumer durables. This slower global economic growth led to reduced demand and unfavorable product mix for our specialty products, particularly in China and Europe," said Mark Costa, Board Chair and CEO. "Despite these challenges, for the second quarter 2019 we grew adjusted EBIT sequentially by 11 percent. I am particularly proud of our employees around the world who are driving growth in new business revenue leveraging our innovation-driven growth model and aggressively managing costs in this challenging economic environment." See Table 4A for reconciliation of first-quarter 2019 adjusted earnings to reported earnings. 

Segment Results 2Q 2019 versus 2Q 2018

Additives & Functional Products - Sales decreased due to lower sales volume and less favorable product mix, lower selling prices and an unfavorable shift in foreign currency exchange rates. The lower sales volume and less favorable product mix was primarily attributed to weaker end-market demand resulting from global trade-related pressures, particularly in transportation and other consumer discretionary markets in China and Europe. In addition to challenges with trade pressures, weakened demand for animal nutrition products was attributed to outbreaks of swine fever in China. Lower selling prices were primarily due to lower raw material prices, including for care chemicals cost pass-through contracts, and also attributed to increased competitive pressure, particularly in markets for adhesive resins and tire additives.