Eastman Chemical Co. (EMN) said Thursday after the markets closed that its third quarter profit rose slightly from last year, as lower raw material and energy costs combined with cost-cutting measures offset a 26% drop in sales. The company's quarterly earnings per share breezed past Wall Street expectations. At the same time, the company said it expects fourth quarter earnings per share to be slightly above the high end of analysts' estimates.
The Kingsport, Tennessee-based diversified chemicals maker reported net income for the third quarter of $101 million or $1.38 per share, compared to $100 million or $1.33 per share for the year-ago quarter. Excluding items, adjusted earnings per share for the year-ago quarter was $1.35.
On average, 8 analysts polled by Thomson Reuters expected the company to earn $1.13 per share for the third quarter. Analysts' estimate typically exclude special items.
The company noted that earnings for the 2009 third quarter were reduced $0.16 per share by the reversal of a previously recognized investment tax credit for the company's Beaumont, Texas, industrial gasification project.
Operating earnings in third quarter increased to $191 million from $174 million in the prior year quarter.
Cost of sales fell to $1.0 billion from $1.5 billion a year earlier.
Sales for the third quarter fell 26% to $1.34 billion from $1.82 billion in the same quarter last year. Three analysts had a consensus revenue estimate of $1.33 billion for the third quarter.
"We continued to make solid progress improving our profitability during what remains a challenging economic environment," said Jim Rogers, president and CEO.
Third quarter sales from the company's Coatings, Adhesives, Specialty Polymers and Inks segment dropped 18% year-over-year to $338 million, mainly due to lower selling prices and lower sales volume.
Sales from the Fibers segment declined 5% to $257 million, as lower sales volume more than offset higher selling prices.
Third quarter sales from the company's Performance Chemicals and Intermediates dipped 40% to $355 million, while Performance Polymers segment sales slumped 36% to $187 million. Sales from the company's Specialty Plastics segment fell 21% to $200 million due to lower sales volume and lower selling prices.
For the nine months, the company reported net income of $168 million or $2.29 per share, compared to $348 million or $4.50 per share for the same period last year. The prior year period results included income from discontinued operations of $18 million or $0.23 per share.
Excluding items, earnings per share for the nine-month period was $2.49 per share, compared to $4.38 per share in the prior year period.
Sales for the nine-month period fell to $3.72 million from $5.38 million in the corresponding year-ago period.
Looking forward, the company said it expects fourth quarter earnings per share to decline sequentially, but to be slightly above the high end of analysts' estimates, which is $0.85 per share. Analysts currently have a consensus earnings estimate of $0.79 per share for the fourth quarter.
Commenting on the fourth quarter outlook, Rogers said, "We expect to continue to benefit from a favorable shift in company product mix and cost reduction actions we have taken. However, we also expect volatility in raw material and energy costs and a decline in sales volume due to normal seasonality to negatively impact our fourth quarter results."
Earlier Thursday, Dow Chemical Co. (DOW) reported a 66% rise in third quarter profit, driven by asset sales gains and cost reductions, even as revenue declined 22%.
Eastman Chemical shares closed Thursday's regular trading session at $56.19, up $1.29 or 2.35% and gained an additional $1.81 or 3.22% in after hours trading.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.