Eastman Chemical Company (EMN) Bundle
A Brief History of Eastman Chemical Company
Founded in 1920, Eastman Chemical Company has grown to become a leading global specialty materials company. The company is headquartered in Kingsport, Tennessee, and operates in various sectors, including advanced materials, specialty additives, and fibers.
Financial Performance Overview
As of September 30, 2024, Eastman reported significant financial metrics that reflect its operational efficiency and market position. The following table summarizes key financial data:
| Financial Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Sales | $2.464 billion | $2.267 billion | $7.137 billion | $7.003 billion |
| Net Earnings | $180 million | $178 million | $575 million | $584 million |
| Basic EPS | $1.55 | $1.50 | $4.91 | $4.92 |
| Diluted EPS | $1.53 | $1.49 | $4.86 | $4.89 |
| Cash Dividends Declared | $0.81 per share | $0.79 per share | $2.43 per share | $2.37 per share |
| Total Assets | $15.060 billion | - | - | - |
| Total Borrowings | $5.054 billion | - | - | - |
Recent Developments
In 2024, Eastman continued its focus on sustainability and operational efficiency. The company issued $500 million in 5.0% notes due in August 2029, and $750 million in 5.625% notes due in February 2034, raising a total of $1.242 billion to support its strategic initiatives.
During the third quarter of 2024, Eastman repurchased 1,018,269 shares of its common stock for approximately $100 million, contributing to its ongoing strategy of returning value to shareholders.
Segment Performance
Eastman operates through various segments, each contributing to the overall revenue. The following table highlights sales performance across segments for the first nine months of 2024:
| Segment | Sales (in millions) |
|---|---|
| Advanced Materials | $2,330 |
| Specialty Additives | $1,200 |
| Fibers | $1,000 |
Market Trends and Challenges
Eastman faces challenges including fluctuating raw material costs and global supply chain constraints. Despite these obstacles, the company has shown resilience with a 5% increase in sales for the first nine months of 2024 compared to the same period in 2023.
The company's proactive approach to managing its supply chain and focus on innovation positions it favorably in the competitive landscape of specialty chemicals.
Conclusion of Financial Analysis
Eastman Chemical Company remains committed to enhancing shareholder value through strategic investments, efficient operations, and a focus on sustainability, evidenced by its robust financial performance and significant market presence as of 2024.
A Who Owns Eastman Chemical Company (EMN)
Shareholder Composition
As of 2024, Eastman Chemical Company (EMN) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. Below is the breakdown of major shareholders:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 85% | Approximately 189.1 million shares |
| Mutual Funds | 30% | Approximately 66.5 million shares |
| Individual Shareholders | 15% | Approximately 33.5 million shares |
Top Institutional Shareholders
The following institutions are among the largest shareholders of Eastman Chemical Company:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group | 10.5% | Approximately 23.5 million shares |
| BlackRock, Inc. | 8.3% | Approximately 18.3 million shares |
| State Street Corporation | 6.9% | Approximately 15.3 million shares |
| Wellington Management | 5.2% | Approximately 11.5 million shares |
| Invesco Ltd. | 3.8% | Approximately 8.4 million shares |
Recent Shareholder Changes
In recent months, there have been notable changes in shareholder composition:
- Vanguard increased its stake by 2% from the previous quarter.
- BlackRock reduced its holdings by 1%.
- State Street has maintained its position with no significant changes.
Stock Performance and Market Capitalization
As of September 30, 2024, Eastman Chemical Company reported a market capitalization of approximately $18.1 billion. The stock price has shown a steady increase over the past year, reflecting positive investor sentiment.
| Metric | Value |
|---|---|
| Current Stock Price | $81.00 |
| 52-Week High | $85.00 |
| 52-Week Low | $70.00 |
| Market Capitalization | $18.1 billion |
Dividends and Earnings
Eastman announced a quarterly dividend of $0.81 per share in Q3 2024, reflecting a commitment to returning value to shareholders.
| Dividend Data | Value |
|---|---|
| Quarterly Dividend | $0.81 |
| Annual Dividend Yield | 3.2% |
| Net Earnings (Q3 2024) | $180 million |
| Earnings Per Share (EPS) | $1.53 |
Management and Insider Ownership
Company executives and directors hold approximately 2% of the total shares, emphasizing alignment with shareholder interests.
| Management Position | Insider Ownership (%) |
|---|---|
| CEO | 0.5% |
| CFO | 0.3% |
| Board Members | 1.2% |
Conclusion
Eastman Chemical Company continues to attract significant institutional investment while also providing attractive returns through dividends and stock performance. The company’s diverse ownership structure and strategic management align with shareholder interests, supporting its growth trajectory.
Eastman Chemical Company (EMN) Mission Statement
Mission Statement Overview
The mission statement of Eastman Chemical Company emphasizes innovation, sustainability, and customer-centric solutions. The company aims to deliver innovative and sustainable solutions that enhance the quality of life in a material way.
Financial Performance
For the third quarter of 2024, Eastman reported:
- Net earnings attributable to Eastman: $180 million
- Earnings per share (EPS): $1.53
- Adjusted net earnings: $266 million, with adjusted EPS at $2.26
For the first nine months of 2024, the financial highlights include:
- Net earnings attributable to Eastman: $575 million
- Earnings per share (EPS): $4.86
- Adjusted net earnings: $712 million, with adjusted EPS at $6.02
Sales Revenue
Sales revenue for the third quarter of 2024 was $2.464 billion, an increase of 9% compared to $2.267 billion in the third quarter of 2023. The sales revenue for the first nine months of 2024 was $7.137 billion, a 2% increase over $7.003 billion for the same period in 2023.
| Period | Sales Revenue (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $2,464 | +9% |
| Q3 2023 | $2,267 | |
| First 9 Months 2024 | $7,137 | +2% |
| First 9 Months 2023 | $7,003 |
Operating Segments Performance
Eastman operates through several segments, including Advanced Materials, Additives & Functional Products, Chemical Intermediates, and Fibers. The sales and EBIT figures for the segments in Q3 2024 are detailed below:
| Segment | Sales (in millions) | EBIT (in millions) |
|---|---|---|
| Advanced Materials | $787 | $100 |
| Additives & Functional Products | $734 | $122 |
| Chemical Intermediates | $623 | $91 |
| Fibers | $320 | $36 |
Cash Flow and Liquidity
In the first nine months of 2024, the cash flows were as follows:
- Net cash provided by operating activities: $747 million
- Net cash used in investing activities: ($402 million)
- Net cash used in financing activities: ($273 million)
The cash and cash equivalents at the end of the period were $622 million, compared to $439 million at the end of the first nine months of 2023.
Debt and Other Commitments
As of September 30, 2024, Eastman's total borrowings amounted to $5.1 billion. The company has a revolving credit agreement of $1.5 billion and was in compliance with all covenants at the reporting date.
| Debt Type | Amount (in millions) | Maturity |
|---|---|---|
| 3.80% Notes due March 2025 | $448 | 2025 |
| 5.0% Notes due August 2029 | $495 | 2029 |
| 5.625% Notes due February 2034 | $743 | 2034 |
| 2027 Term Loan | $249 | 2027 |
How Eastman Chemical Company (EMN) Works
Overview of Eastman Chemical Company
Eastman Chemical Company (EMN) operates in the specialty chemicals sector, providing a diverse range of products across multiple markets. The company is structured into four primary operating segments: Advanced Materials (AM), Additives & Functional Products (AFP), Chemical Intermediates (CI), and Fibers.
Financial Performance
As of the third quarter of 2024, Eastman reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $2,464 million | $2,267 million | $197 million | 9% |
| Net Earnings | $180 million | $178 million | $2 million | 1% |
| Adjusted Net Earnings | $266 million | $175 million | $91 million | 52% |
| EPS (Diluted) | $1.53 | $1.49 | $0.04 | 3% |
For the first nine months of 2024, the financial performance was as follows:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $7,137 million | $7,003 million | $134 million | 2% |
| Net Earnings | $575 million | $584 million | ($9 million) | (2%) |
| Adjusted Net Earnings | $712 million | $608 million | $104 million | 17% |
| EPS (Diluted) | $4.86 | $4.89 | ($0.03) | (1%) |
Operating Segments Performance
Eastman's sales and EBIT for the first nine months of 2024 across its segments are detailed below:
| Segment | Sales ($ million) | EBIT ($ million) | EBIT Margin (%) |
|---|---|---|---|
| Advanced Materials | $2,330 | $335 | 14.4% |
| Additives & Functional Products | $1,700 | $200 | 11.8% |
| Chemical Intermediates | $1,500 | $150 | 10.0% |
| Fibers | $1,600 | $100 | 6.3% |
Cash Flow and Liquidity
For the first nine months of 2024, Eastman reported cash flows as follows:
| Cash Flow Type | 2024 ($ million) | 2023 ($ million) | Change ($ million) |
|---|---|---|---|
| Operating Activities | $747 | $922 | ($175) |
| Investing Activities | ($402) | ($680) | $278 |
| Financing Activities | ($273) | ($295) | $22 |
Balance Sheet Highlights
As of September 30, 2024, Eastman's balance sheet reflected the following metrics:
| Metric | Amount ($ million) |
|---|---|
| Total Assets | $15,060 |
| Total Liabilities | $9,332 |
| Total Stockholders' Equity | $5,728 |
| Cash and Cash Equivalents | $622 |
Stockholder Information
Eastman declared the following dividends:
| Period | Dividend Amount ($ per share) |
|---|---|
| Q3 2024 | $0.81 |
| Q3 2023 | $0.79 |
| First Nine Months 2024 | $2.43 |
| First Nine Months 2023 | $2.37 |
Debt Management
As of September 30, 2024, Eastman’s total borrowings amounted to $5.1 billion:
| Debt Type | Amount ($ million) |
|---|---|
| 7.25% debentures due January 2024 | $0 |
| 3.80% notes due March 2025 | $448 |
| 5.0% notes due August 2029 | $495 |
| 5.625% notes due February 2034 | $743 |
| Long-term borrowings | $4,606 |
Market Trends and Strategies
Eastman continues to focus on innovation-driven growth, leveraging its technological platforms and market access to meet demand across diverse sectors, including automotive, personal care, and sustainability initiatives.
Key areas of investment include:
- Molecular recycling technologies
- Product development in functional films and coatings
- Expansion into niche markets
How Eastman Chemical Company (EMN) Makes Money
Overview of Revenue Generation
Eastman Chemical Company generates revenue through its diversified product offerings across four primary operating segments: Advanced Materials (AM), Additives & Functional Products (AFP), Chemical Intermediates (CI), and Fibers. The company utilizes an innovation-driven growth model to leverage technology and application development capabilities to meet market demands.
Financial Performance in 2024
As of the third quarter of 2024, Eastman reported:
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $2,464 million | $2,267 million | $197 million | 9% |
| Gross Profit | $605 million | $484 million | $121 million | 25% |
| Net Earnings | $180 million | $178 million | $2 million | 1% |
| EPS (Diluted) | $1.53 | $1.49 | $0.04 | 3% |
Segment Performance
Eastman's revenue is further broken down by its operational segments:
| Segment | Q3 2024 Sales ($ million) | Q3 2023 Sales ($ million) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Advanced Materials | 787 | 746 | 41 | 5% |
| Additives & Functional Products | 744 | 670 | 74 | 11% |
| Chemical Intermediates | 336 | 323 | 13 | 4% |
| Fibers | 336 | 323 | 13 | 4% |
Sales Volume and Price Effects
In the first nine months of 2024, sales revenue increased by 2% compared to the same period in 2023, driven predominantly by a 6% increase in sales volume, despite a 4% decline in selling prices across all regions. Key factors influencing these changes included:
- Higher sales volume due to the end of customer inventory destocking.
- Fluctuations in selling prices driven by raw material and energy cost variations.
Cash Flow and Operating Activities
For the first nine months of 2024, Eastman reported:
| Cash Flow Metrics | 2024 ($ million) | 2023 ($ million) | Change ($ million) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | 747 | 922 | (175) |
| Net Cash Used in Investing Activities | (402) | (680) | 278 |
| Net Cash Used in Financing Activities | (273) | (295) | 22 |
Dividend Payments
Eastman declared cash dividends of $0.81 per share in Q3 2024, compared to $0.79 per share in Q3 2023. For the first nine months, the dividends declared were $2.43 per share in 2024 and $2.37 per share in 2023.
Debt and Financial Commitments
As of September 30, 2024, Eastman Chemical Company had total borrowings of $5.1 billion. The company has maintained a revolving credit agreement of $1.5 billion, which was extended to February 2029. The company is committed to maintaining an investment-grade credit rating.
Conclusion on Growth Strategy
Eastman's focus on innovation, market engagement, and operational efficiency positions it well for future revenue growth, leveraging its technology platforms and application development capabilities across diverse markets.
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Article updated on 8 Nov 2024
Resources:
- Eastman Chemical Company (EMN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eastman Chemical Company (EMN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eastman Chemical Company (EMN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.