Eastman Chemical Company Reports Strong Q3 and 9M 2024 Financial Results with Increased Sales, Gross Profit, and EBIT

Eastman Chemical Company reported strong financial performance for the third quarter and first nine months of 2024, with notable increases in sales, gross profit, and earnings before interest and taxes (EBIT).

For the third quarter of 2024, Eastman achieved sales of $2,464 million, a 9% increase from $2,267 million in the same period of 2023. The first nine months of 2024 also saw a sales increase to $7,137 million, up 2% from $7,003 million in the prior year. The growth in sales was attributed to higher sales volumes, although this was partially offset by lower selling prices.

Gross profit for the third quarter rose significantly to $605 million, compared to $484 million in the third quarter of 2023, marking a 25% increase. For the first nine months, gross profit increased to $1,736 million from $1,597 million, a 9% rise. The increase in gross profit was driven by higher sales volumes and improved asset utilization, despite rising selling, general, and administrative (SG&A) expenses.

EBIT for the third quarter of 2024 was $329 million, up 29% from $256 million in the same quarter of 2023. For the first nine months, EBIT increased to $929 million from $825 million, reflecting a 13% increase. Excluding non-core and unusual items, EBIT for the third quarter was $366 million, a 43% increase from $256 million in the prior year.

Net earnings attributable to Eastman for the third quarter were $180 million, slightly up from $178 million in the same quarter of 2023, with earnings per share (EPS) increasing to $1.55 from $1.50. However, net earnings for the first nine months decreased to $575 million from $584 million, with EPS slightly down to $4.86 from $4.89.

The company’s cash and cash equivalents as of September 30, 2024, were $622 million, an increase from $548 million at the end of 2023. Total assets rose to $15,060 million from $14,633 million, while total liabilities increased to $9,332 million from $9,103 million.

Eastman also reported significant strategic developments, including the issuance of $500 million in 5.0% notes due August 2029 and the redemption of $250 million of 3.80% notes due March 2025. The company’s total borrowings as of September 30, 2024, were $5,054 million, up from $4,846 million at the end of 2023.

In terms of operational adjustments, Eastman incurred total charges of $30 million in the third quarter of 2024, including asset impairments and severance charges. The company continues to focus on returning value to shareholders through dividends and share repurchases, having repurchased 1,018,269 shares for $100 million in the third quarter.