Eastman Chemical Co. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Eastman Chemical Co. filed its Q1 2024 10-Q report on April 26, 2024, detailing financial performance and corporate information.</b>

AI Summary

EASTMAN CHEMICAL CO (EMN) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Eastman Chemical Co. reported its Q1 2024 results on April 26, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company is incorporated in Delaware and its fiscal year ends on December 31. Eastman Chemical Co. is classified under SIC code 2821 for Plastics, Materials, Syn Resins & Nonvulcan Elastomers. The filing includes financial data related to short-term borrowings and long-term debt.

Why It Matters

For investors and stakeholders tracking EASTMAN CHEMICAL CO, this filing contains several important signals. This 10-Q filing provides crucial insights into Eastman Chemical's financial health and operational performance during the first quarter of 2024, which is vital for investors assessing the company's current standing and future prospects. The detailed financial statements and disclosures within this report are essential for understanding the company's revenue streams, debt obligations, and overall market position within the chemicals and materials sector.

Risk Assessment

Risk Level: medium — EASTMAN CHEMICAL CO shows moderate risk based on this filing. The company's financial performance is subject to market fluctuations and the cyclical nature of the chemical industry, as indicated by the need to report on various debt instruments and revenue segments.

Analyst Insight

Investors should analyze the detailed financial statements in the 10-Q to understand revenue trends, cost of goods sold, and debt levels to assess Eastman Chemical's profitability and financial stability.

Key Numbers

• 2024-03-31 — Period End Date (Reporting period)
• 2024-01-01 — Period Start Date (Reporting period)
• 12/31 — Fiscal Year End (Company's fiscal year end)
• 2024 — Fiscal Year (Reporting fiscal year)

Key Players & Entities

• EASTMAN CHEMICAL CO (company) — Filer name
• EMN (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-04-26 (date) — Filing date
• DE (jurisdiction) — State of incorporation
• 2821 (sic_code) — Standard Industrial Classification
• KINGSPORT (location) — Business address city
• 4232292000 (phone) — Business phone

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-01-01: Quarterly Period Start — Beginning of the reporting period for the 10-Q filing.
• 2024-04-26: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during a specific quarter.)

SIC Code

Standard Industrial Classification code used to classify business establishments. (Helps categorize Eastman Chemical Co. within the broader industrial landscape.)

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share EMN New York Stock Exchange
• $500 million — rm loan. The outstanding balance on the $500 million term loan that matures in 2027 (the "20
• $499 million — ures in 2027 (the "2027 Term Loan") was $499 million at both March 31, 2024 and December 31,

Filing Documents

• emn-20240331.htm (10-Q) — 1441KB
• ex3101-2024033113aceocert.htm (EX-31.01) — 10KB
• ex3102-2024033113acfocert.htm (EX-31.02) — 10KB
• ex3201-202403311350ceocert.htm (EX-32.01) — 5KB
• ex3202-202403311350cfocert.htm (EX-32.02) — 5KB
• eastman_blackx300dpi1a.jpg (GRAPHIC) — 22KB
• eastman_blackx300dpi2a.jpg (GRAPHIC) — 22KB
• eastman_blackx300dpi3a.jpg (GRAPHIC) — 22KB
• eastman_blackx300dpia.jpg (GRAPHIC) — 22KB
• emn-20240331_g1.jpg (GRAPHIC) — 22KB
• 0000915389-24-000133.txt (&nbsp;) — 7591KB
• emn-20240331.xsd (EX-101.SCH) — 35KB
• emn-20240331_cal.xml (EX-101.CAL) — 61KB
• emn-20240331_def.xml (EX-101.DEF) — 251KB
• emn-20240331_lab.xml (EX-101.LAB) — 531KB
• emn-20240331_pre.xml (EX-101.PRE) — 390KB
• emn-20240331_htm.xml (XML) — 1281KB

Forward-Looking Statements

Forward-Looking Statements 3

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1.

Financial Statements

Financial Statements Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings 4 Unaudited Consolidated Statements of Financial Position 5 Unaudited Consolidated Statements of Cash Flows 6 Notes to the Unaudited Consolidated Financial Statements 7 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 4.

Controls and Procedures

Controls and Procedures 40

OTHER INFORMATION

PART II. OTHER INFORMATION 1.

Legal Proceedings

Legal Proceedings 41 1A.

Risk Factors

Risk Factors 41 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 5. Other Information 42 6. Exhibits 43

Signatures

Signatures 44 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements made or incorporated by reference in this Quarterly Report are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements are all statements, other than statements of historical fact, that may be made by Eastman Chemical Company ("Eastman" or the "Company") from time to time. In some cases, you can identify forward-looking statements by terminology such as "anticipates", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "forecasts", "will", "would", "could", and similar expressions, or expressions of the negative of these terms. Forward-looking statements may relate to, among other things, such matters as planned and expected capacity increases and utilization; anticipated capital spending; expected depreciation and amortization; environmental matters and opportunities (including potential risks associated with physical and transitional impacts of climate change and related voluntary and regulatory carbon requirements); exposure to and effects of hedging raw material and energy prices and foreign currencies exchange and interest rates; disruption or interruption of operations and of raw material or energy supply; operating risks related to the Company's information technology infrastructure, including service interruptions or data corruption as a result of cyber-based attacks; global and regional economic, political, and business conditions, including heightened inflation, capital market volatility, interest rate and currency fluctuations, and economic slowdown or recession; competition; growth opportunities; supply and demand, volume, price, cost, margin and sales; pending and future legal proceedings; earnings, cash flow, dividends, stock repurchases and other expected financial results, events, decisions,

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS First Quarter (Dollars in millions, except per share amounts) 2024 2023 Sales $ 2,310 $ 2,412 Cost of sales 1,778 1,883 Gross profit 532 529 Selling, general and administrative expenses 191 191 Research and development expenses 59 62 Asset impairments and restructuring charges, net 11 22 Other components of post-employment (benefit) cost, net ( 5 ) ( 3 ) Other (income) charges, net 13 11 Earnings before interest and taxes 263 246 Net interest expense 49 52 Earnings before income taxes 214 194 Provision for income taxes 49 60 Net earnings 165 134 Less: Net earnings attributable to noncontrolling interest — — Net earnings attributable to Eastman $ 165 $ 134 Basic earnings per share attributable to Eastman $ 1.40 $ 1.13 Diluted earnings per share attributable to Eastman $ 1.39 $ 1.12 Comprehensive Income Net earnings including noncontrolling interest $ 165 $ 134 Other comprehensive income (loss), net of tax: Change in cumulative translation adjustment ( 10 ) ( 1 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits ( 2 ) ( 5 ) Derivatives and hedging: Unrealized gain (loss) during period 4 ( 7 ) Reclassification adjustment for (gains) losses included in net income, net ( 1 ) ( 2 ) Total other comprehensive income (loss), net of tax ( 9 ) ( 15 ) Comprehensive income including noncontrolling interest 156 119 Less: Comprehensive income attributable to noncontrolling interest — — Comprehensive income attributable to Eastman $ 156 $ 119 Retained Earnings Retained earnings at beginning of period $ 9,490 $ 8,973 Net earnings attributable to Eastman 165 134 Cash dividends declared ( 96 ) ( 94 ) Retained earnings at end of period $ 9,559 $ 9,013 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Conte

Properties

Properties Properties and equipment at cost 13,651 13,574 Less: Accumulated depreciation 8,116 8,026 Net properties 5,535 5,548 Goodwill 3,644 3,646 Intangible assets, net of accumulated amortization 1,110 1,138 Other noncurrent assets 821 820 Total assets $ 14,748 $ 14,633 Liabilities and Stockholders' Equity Current liabilities Payables and other current liabilities $ 1,878 $ 2,035 Borrowings due within one year 740 541 Total current liabilities 2,618 2,576 Long-term borrowings 4,340 4,305 Deferred income tax liabilities 588 601 Post-employment obligations 663 667 Other long-term liabilities 931 954 Total liabilities 9,140 9,103 Stockholders' equity Common stock ($ 0.01 par value – 350,000,000 shares authorized; shares issued – 223,068,055 and 222,762,317 as of March 31, 2024 and December 31, 2023, respectively) 2 2 Additional paid-in capital 2,388 2,368 Retained earnings 9,559 9,490 Accumulated other comprehensive income (loss) ( 328 ) ( 319 ) 11,621 11,541 Less: Treasury stock at cost ( 105,469,354 shares as of March 31, 2024 and December 31, 2023) 6,083 6,083 Total Eastman stockholders' equity 5,538 5,458 Noncontrolling interest 70 72 Total equity 5,608 5,530 Total liabilities and stockholders' equity $ 14,748 $ 14,633 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS First Three Months (Dollars in millions) 2024 2023 Operating activities Net earnings $ 165 $ 134 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 127 141 Benefit from deferred income taxes ( 17 ) ( 7 ) Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: (Increase) decrease in trade receivables ( 105 ) ( 91 ) (Increase) decrease in inventories ( 100 ) ( 44 ) Increase (decrease) in trade payables 49 ( 132 ) Pension and other postretirement

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View this 10-Q filing on SEC EDGAR