Industry News

Eastman Comments on Hurricane Impact and Third Quarter Results

Published on 2005-09-28. Author : SpecialChem

KINGSPORT, Tenn. -- Eastman Chemical Company (NYSE:EMN) announced that the company's Longview, Texas, manufacturing facility had no significant structural damage from Hurricane Rita. No other Eastman North American manufacturing facilities were directly impacted by Hurricanes Katrina and Rita.

The company currently expects the impact of Hurricanes Katrina and Rita, including elevated raw material and energy costs and reduced production in North America, to compress margins despite higher selling prices. However, the company expects third-quarter 2005 earnings per share to be within the current First Call analysts' range of estimates, which is $1.17 to $1.30 per share.

Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is the world’s largest producer of PET polymers for packaging; and is a major supplier of cellulose acetate fibers. Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a FORTUNE 500 company with 2004 sales of $6.6 billion and approximately 12,000 employees.

Forward-looking Statements : The statements in this news release concerning expected third quarter 2005 earnings per share and the expected impact of Hurricanes Katrina and Rita on Eastman's third quarter business and financial results, including raw material and energy costs, production, gross profit margins, and selling prices for the company's products, as well as some of the significant reasons for such expected results, are forward-looking. Such statements are based upon preliminary information, internal estimates, and management assumptions, plans and expectations and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Important factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements, in addition to those identified with such forward-looking statements, are detailed in the company's reports filed with the Securities and Exchange Commission, including the Form 10-Q for the quarter ended June 30 , 2005.

Source: Eastman Chemical Company

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