Eastman Chemical Company Posts Robust Results For Q4 & FY2023
Eastman Chemical Company reported fourth-quarter and full-year 2023 results with significant achievements. The company generated approximately US$ 1.4 billion in cash from operating activities in 2023, showcasing robust cash flow. Demonstrating commercial prowess, Eastman offset macro-driven volume challenges with pricing excellence, reducing costs by about US$ 200 million in 2023. The Texas City Operations divestiture for US$ 490 million was successfully closed. Eastman introduced plastic waste into the Kingsport methanolysis facility, expecting to produce on-spec material and generate revenue soon, marking a stride in the circular economy.
Mark Costa, Board Chair and CEO, highlighted the resilience in earnings and cash flow, underlining their upbeat entry into 2024 with the completion of the Kingsport facility. Despite challenging market conditions, Eastman remained focused on cash generation and cost discipline. The company anticipates 2024 EPS between US$ 7.25-8.00, expecting benefits from volume growth, revenue from the Kingsport facility and improved asset utilization, offset by lower price-cost impacting margins, primarily in chemical intermediates. The outlook reflects a commitment to managing costs, investing in growth and creating long-term value.
