Eastman Chemical Co. Files Q2 2024 10-Q

TL;DR

EMN Q2 2024 10-Q filed. Check financials.

AI Summary

Eastman Chemical Company reported its Q2 2024 results on July 26, 2024. The company's financial performance for the period ending June 30, 2024, is detailed in this 10-Q filing. Key financial metrics and operational updates are provided for investors and stakeholders.

Why It Matters

This filing provides crucial financial data for Eastman Chemical Co., allowing investors to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing and does not inherently present new risks.

Key Players & Entities

• EASTMAN CHEMICAL CO (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240726 (date) — Filing Date

FAQ

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

Filing Documents

• emn-20240630.htm (10-Q) — 1897KB
• ex3101-2024063013aceocert.htm (EX-31.01) — 10KB
• ex3102-2024063013acfocert.htm (EX-31.02) — 10KB
• ex3201-202406301350ceocert.htm (EX-32.01) — 5KB
• ex3202-202406301350cfocert.htm (EX-32.02) — 5KB
• eastman_blackx300dpi.jpg (GRAPHIC) — 22KB
• eastman_blackx300dpi1.jpg (GRAPHIC) — 22KB
• eastman_blackx300dpi2.jpg (GRAPHIC) — 22KB
• eastman_blackx300dpi3.jpg (GRAPHIC) — 22KB
• emn-20240630_g1.jpg (GRAPHIC) — 22KB
• 0000915389-24-000192.txt ( ) — 9001KB
• emn-20240630.xsd (EX-101.SCH) — 35KB
• emn-20240630_cal.xml (EX-101.CAL) — 62KB
• emn-20240630_def.xml (EX-101.DEF) — 244KB
• emn-20240630_lab.xml (EX-101.LAB) — 515KB
• emn-20240630_pre.xml (EX-101.PRE) — 383KB
• emn-20240630_htm.xml (XML) — 1792KB

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 27 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 4.

Controls and Procedures

Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION 1.

Legal Proceedings

Legal Proceedings 45 1A.

Risk Factors

Risk Factors 45 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 5. Other Information 46 6. Exhibits 47

Signatures

Signatures 48 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 Second Quarter First Six Months (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Sales $ 2,363 $ 2,324 $ 4,673 $ 4,736 Cost of sales 1,764 1,740 3,542 3,623 Gross profit 599 584 1,131 1,113 Selling, general and administrative expenses 180 185 371 376 Research and development expenses 60 60 119 122 Asset impairments and restructuring charges, net — — 11 22 Other components of post-employment (benefit) cost, net ( 4 ) ( 3 ) ( 9 ) ( 6 ) Other (income) charges, net 26 19 39 30 Earnings before interest and taxes 337 323 600 569 Net interest expense 50 54 99 106 Earnings before income taxes 287 269 501 463 Provision for (benefit from) income taxes 56 ( 3 ) 105 57 Net earnings 231 272 396 406 Less: Net earnings attributable to noncontrolling interest 1 — 1 — Net earnings attributable to Eastman $ 230 $ 272 $ 395 $ 406 Basic earnings per share attributable to Eastman $ 1.96 $ 2.28 $ 3.37 $ 3.41 Diluted earnings per share attributable to Eastman $ 1.94 $ 2.27 $ 3.33 $ 3.39 Comprehensive Income Net earnings including noncontrolling interest $ 231 $ 272 $ 396 $ 406 Other comprehensive income (loss), net of tax: Change in cumulative translation adjustment 9 ( 42 ) ( 1 ) ( 43 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits ( 2 ) ( 5 ) ( 4 ) ( 10 ) Derivatives and hedging: Unrealized gain (loss) during period 3 ( 5 ) 7 ( 12 ) Reclassification adjustment for (gains) losses included in net income, net 16 1 15 ( 1 ) Total other comprehensive income (loss), net of tax 26 ( 51 ) 17 ( 66 ) Comprehensive income including noncontrolling interest 257 221 413 340 Less: Comprehensive income attributable to noncontrolling interest 1 — 1 — Comprehensive income attributable to Eastman $ 256 $ 221 $ 412 $ 340 Retained Earnings Retained earnings at b

Properties

Properties Properties and equipment at cost 13,717 13,574 Less: Accumulated depreciation 8,188 8,026 Net properties 5,529 5,548 Goodwill 3,641 3,646 Intangible assets, net of accumulated amortization 1,086 1,138 Other noncurrent assets 847 820 Total assets $ 14,945 $ 14,633 Liabilities and Stockholders' Equity Current liabilities Payables and other current liabilities $ 2,044 $ 2,035 Borrowings due within one year 697 541 Total current liabilities 2,741 2,576 Long-term borrowings 4,336 4,305 Deferred income tax liabilities 576 601 Post-employment obligations 655 667 Other long-term liabilities 938 954 Total liabilities 9,246 9,103 Stockholders' equity Common stock ($ 0.01 par value – 350,000,000 shares authorized; shares issued – 223,278,963 and 222,762,317 as of June 30, 2024 and December 31, 2023, respectively) 2 2 Additional paid-in capital 2,417 2,368 Retained earnings 9,694 9,490 Accumulated other comprehensive income (loss) ( 302 ) ( 319 ) 11,811 11,541 Less: Treasury stock at cost ( 106,469,359 and 105,469,354 shares as of June 30, 2024 and December 31, 2023, respectively) 6,184 6,083 Total Eastman stockholders' equity 5,627 5,458 Noncontrolling interest 72 72 Total equity 5,699 5,530 Total liabilities and stockholders' equity $ 14,945 $ 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 Six Months (Dollars in millions) 2024 2023 Operating activities Net earnings $ 396 $ 406 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 253 260 Benefit from deferred income taxes ( 37 ) ( 93 ) Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: (Increase) decrease in trade receivables ( 138 ) 33 (Increase) decrease in inventories ( 238 ) ( 73 ) Increase (decrease) in trade payables 89 ( 290 ) Pension an

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