Eastman Announces First-Quarter 2014 Financial Results - Seite 2

Adhesives & Plasticizers - Sales revenue was unchanged as higher sales volume for adhesives resins was offset by lower selling prices for both adhesives resins and plasticizers. Higher sales volume for adhesives resins was primarily attributed to stronger end-market demand, particularly for hygiene and packaging, and customer inventory destocking that negatively impacted first quarter 2013. Lower selling prices for adhesives resins were primarily due to continued competitive pressure resulting from greater industry supply attributed to increased availability of key raw materials and additional competitor capacity. Lower selling prices for plasticizers were primarily attributed to continued competitive pressures resulting from weakened demand in Asia Pacific and Europe. Operating earnings declined to $47 million for first quarter 2014 compared with $49 million for first quarter 2013, primarily due to lower selling prices partially offset by lower operating costs and higher sales volume.

Advanced Materials - Sales revenue was relatively unchanged as higher sales volume for Eastman Tritan(TM) copolyester and premium acoustic interlayers was offset by lower performance films sales volume which was expected due to changes in customer incentive terms in Asia Pacific. Excluding non-core or non-recurring items in first quarter 2014, operating earnings increased to $71 million for first quarter 2014 compared with $65 million for first quarter 2013, primarily due to lower unit costs for specialty plastics. The lower unit costs were due to higher capacity utilization resulting from previous inventory management decisions and to meet demand for Eastman Tritan(TM) copolyester.

Fibers - Sales revenue increased due to higher selling prices, partially offset by lower sales volume. Lower acetate tow sales volume, primarily due to the combination of customer buying patterns and additional industry capacity, including Eastman's China acetate tow joint venture, was partially offset by acetate flake sales volume to the joint venture. Operating earnings increased to $117 million for first quarter 2014 compared with $114 million for first quarter 2013, primarily due to higher selling prices and sales of acetate flake to the joint venture more than offsetting lower acetate tow sales volume.