Eastman Announces Fourth-Quarter and Full-Year 2023 Financial Results - Seite 3

Additives & Functional Products – Sales revenue decreased 15 percent due to 10 percent lower selling prices and 6 percent lower sales volume/mix.

Lower selling prices were primarily due to cost-pass-through contracts. Sales volume/mix was lower due to weak demand, especially in the building and construction end market and timing for some heat transfer fluid fills, as well as aggressive customer inventory destocking in the agriculture end market.

Decreased EBIT included lower sales volume/mix and lower capacity utilization, mostly offset by lower variable costs more than offsetting lower selling prices.

Fibers – Sales revenue increased 9 percent due to 13 percent higher selling prices, partially offset by 4 percent lower sales volume/mix.

Substantially higher selling prices for acetate tow were due to an increase in industry capacity utilization and higher raw material, energy, and distribution prices throughout 2022.

EBIT increased due to recovery of margins as higher selling prices returned EBIT margins to acceptable performance levels.

Chemical Intermediates – Sales revenue decreased 9 percent due to 16 percent lower selling prices, partially offset by 7 percent higher sales volume/mix.

Lower selling prices across the segment were primarily due to lower raw material prices and weak end-market demand.

Reported EBIT increased due to a gain on the sale of Texas City Operations. Adjusted EBIT was unchanged compared to the prior year period. Increased spreads were offset by lower sales volume/mix and lower capacity utilization.

Corporate Results 2023 versus 2022

Sales revenue decreased 13 percent due to 9 percent lower sales volume/mix, 2 percent unfavorable impact from divested businesses, and 2 percent lower selling prices.

Lower sales volume/mix was due to weak primary demand and significant customer inventory destocking across many of the company’s key end markets, except for strength in transportation.

Reported EBIT increased due to a gain on the sale of Texas City Operations. Adjusted EBIT decreased primarily due to lower sales volume/mix and lower capacity utilization to drive cash generation, increased pension expense of approximately $110 million, increased SG&A expense due to higher variable compensation, continued investment in the circular platform, and an approximately $50 million unfavorable impact from foreign currency. These factors were partially offset by lower variable costs more than offsetting lower selling prices and the benefit from the company’s cost reduction initiatives.