Eastman Chemical Company Announces Strong Q1 2024 Financial Results
Eastman Chemical Company announced its financial results for the first quarter of 2024, demonstrating robust sequential growth in both sales volume/mix and earnings. This impressive performance was primarily propelled by a resurgence in demand for specialty products within its advanced materials and additives and functional products segments. The company also achieved significant milestones, including the successful commencement of on-spec production and revenue generation at its Kingsport methanolysis facility, with expectations of generating approximately US$ 75 million in incremental EBITDA in 2024 compared to the previous year.
Mark Costa, Board Chair and CEO, expressed satisfaction with the company’s performance, highlighting strong sequential earnings growth in Q1 2024, which exceeded initial expectations. He emphasized the completion of inventory destocking across key end markets as a positive sign, indicating a reconnection to primary demand for Eastman’s products. Costa also commended the team’s dedication in achieving on-spec production and revenue generation at the Kingsport methanolysis facility.
Costa remains optimistic about Eastman’s momentum in 2024, emphasizing recovering demand in the base business and the company’s leadership in the circular economy. He expressed confidence in delivering earnings growth and robust cash flow going forward.
Segment Performance:
- Advanced Materials: Sales revenue increased by 1 per cent, driven by higher sales volume/mix despite slightly lower selling prices.
- Additives & Functional Products: Sales revenue decreased by 9 per cent, mainly due to lower selling prices and slightly lower sales volume/mix.
- Fibres: Sales revenue increased by 9 per cent, primarily attributed to higher sales volume/mix, particularly in textiles.
- Chemical Intermediates: Sales revenue decreased by 11 per cent, mainly due to lower selling prices, partially offset by slightly higher sales volume/mix.
