Eastman Announces Fourth-Quarter and Full-Year 2023 Financial Results - Seite 2

“We delivered solid fourth-quarter results in a macroeconomic environment with weak primary demand due to seasonal declines and continued customer inventory destocking in some of our key end markets, including agriculture and medical,” said Mark Costa, Board Chair and CEO. “Against this backdrop, we remained laser focused on cash generation and are incredibly proud to have generated approximately $1.4 billion of operating cash flow in 2023. In addition to our strong cash flow, we reduced costs by approximately $200 million in 2023, demonstrating our continued discipline. We enter 2024 on an upbeat note with the completed construction of our methanolysis facility in Kingsport, Tennessee. We just recently introduced plastic waste into the front end of the process and expect to produce on spec material and to generate revenue soon. We are building momentum as a leader in the circular economy, which adds to my confidence in the resilience of our earnings and cash flow going forward.”

Corporate Results 4Q 2023 versus 4Q 2022

Sales revenue decreased 7 percent driven by 5 percent lower selling prices and 2 percent lower sales volume/mix.

Lower selling prices were due to lower raw material prices. Lower sales volume/mix was due to weak end-market demand and continued customer inventory destocking in some end markets, particularly agriculture and medical.

Reported EBIT increased due to a gain on the sale of our Texas City Operations. Adjusted EBIT increased to $222 million compared to $171 million in fourth quarter 2022. Price-cost increased due to the continued flow through of lower variable costs more than offsetting lower selling prices. The improvement in price-cost was partially offset by lower sales volume/mix, lower capacity utilization, higher pension expense, and increased SG&A expense due to higher variable compensation.

Segment Results 4Q 2023 versus 4Q 2022

Advanced Materials – Sales revenue decreased 4 percent due to 5 percent lower sales volume/mix.

Lower sales volume/mix was driven by continued weak end-market demand and destocking across key end markets, particularly medical, packaging, and building and construction, partially offset by continued strength in automotive.

EBIT increased due to commercial excellence in pricing and the continued flow through of substantially lower variable costs, which were elevated in the prior year period. This price-cost benefit was partially offset by lower capacity utilization, higher planned maintenance costs, and lower sales volume/mix.