Eastman Chemical Company has provided an update on its third-quarter 2022 financial results.
Third-quarter 2022 adjusted earnings per share (EPS) are expected to be approximately $2.00. Previous expectations were for solid growth compared to third-quarter 2021 adjusted EPS of $2.46.
“There are three main factors negatively impacting our volume and product mix in the third quarter,” said Mark Costa, Board Chair and CEO. “While demand across some end markets, including agriculture and personal care, is demonstrating resilience, demand has slowed more than expected in August and September, in particular in the consumer durables and building and construction end markets and the European and Asian regions.
“At the same time, logistics have been challenged by an acceleration of marine logistics issues on the U.S. East Coast, particularly impacting high-value specialty products in Advanced Materials bound for other regions. Operational issues have also impacted volume and product mix, as recovery of our polymer lines from an electricity outage in July at our Kingsport facility took longer than expected,” Costa added.
Commenting on higher costs in the quarter, Costa said, “Certain costs have trended higher than expected and are impacting third-quarter performance, particularly for natural gas in the U.S., which reached a 14-year high during the quarter. A stronger U.S. dollar against a number of currencies, including the euro and the yen, is also negatively impacting results.
“In response to these accelerating challenges and continued uncertainty, we are raising prices where appropriate to offset higher costs and implementing measures to control costs across the company,” Costa said.
This update to our outlook does not include any impact from the recent rail embargo or the potential for a rail worker strike in the U.S. later this month.
Eastman will announce third-quarter 2022 financial results after the close of U.S. equities markets on Thursday, Oct. 27.