Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q3 2024 Earnings Presentation
13 slides from Eastman Chemical's earnings presentation, Nov 1, 2024
Slide 1: 3Q 2024 financial results
3Q 2024 financial results October 31, 2024
Slide 2: Prepared remarks, forward-looking statements, non-GAAP financial measures
Prepared remarks These slides should be reviewed with the accompanying prepared remarks posted on our website. Forward-looking statements The information in this presentation and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litig
Slide 3: 3Q 2024 highlights
3Q 2024 highlights • Delivered strong year-over-year sales volume/mix growth across all operating segments • Drove 360-basis-point adjusted EBIT margin improvement through volume/mix growth, operating leverage, • and commercial excellence • Decision made to move forward with investment in the Longvi
Slide 4: Corporate
Corporate $M (except EPS) 3Q24 3Q23 2Q24 3Q24 vs. 3Q23 highlights Revenue 2,464 2,267 2,363 • Higher sales volume/mix due to the end of customer inventory destocking across most key end markets Adjusted EBIT 366 256 353 Adjusted EBIT margin 14.9% 11.3% 14.9% • Underlying primary demand trends remain
Slide 5: Advanced Materials
Advanced Materials $M 3Q24 3Q23 2Q24 3Q24 vs. 3Q23 highlights Revenue 787 746 795 • Higher sales volume/mix from the end of customer Adjusted EBIT 122 93 131 inventory destocking across key end markets Adjusted EBIT margin 15.5% 12.5% 16.5% • Growth in premium interlayers outpacing the automotive en
Slide 6: Additives & Functional Products
Additives & Functional Products $M 3Q24 3Q23 2Q24 3Q24 vs. 3Q23 highlights Revenue 744 670 718 • Higher sales volume/mix due to the end of Adjusted EBIT 130 105 123 customer inventory destocking across key end Adjusted EBIT margin 17.5% 15.7% 17.1% markets and higher heat transfer fluid project fulf
Slide 7: Fibers
Fibers $M 3Q24 3Q23 2Q24 3Q24 vs. 3Q23 highlights Revenue 336 323 330 • Volume/mix growth in textiles Adjusted EBIT 112 109 122 • Improved price-cost Adjusted EBIT margin 33.3% 33.7% 37.0% Revenue change % Total Vol / Mix Price FX 3Q24 vs 3Q23 4 2 2 0 3Q24 vs 2Q24 2 2 0 0 4Q24 vs 3Q24 trends Tailwin
Slide 8: Chemical Intermediates
Chemical Intermediates $M 3Q24 3Q23 2Q24 3Q24 vs. 3Q23 highlights Revenue 593 527 515 • Higher sales volume/mix due to the end of customer Adjusted EBIT 43 6 22 inventory destocking and improved market conditions Adjusted EBIT margin 7.3% 1.1% 4.3% • Improved olefin and derivative spreads Revenue ch
Slide 9: Cash flow and other financial highlights
Cash flow and other financial highlights Resilient cash flow Balance sheet and tax rate Well positioned with FY24 forecasted Forecasted FY24 operating cash flow Expect normal cash solid investment-grade adjusted effective tax rate approaching seasonality with balance sheet $1.3 billion typical 2H we
Slide 10: Q4 2024 outlook
Q4 2024 outlook Tailwinds vs 3Q24 Headwinds/uncertainties vs 3Q24 • Commercial excellence in defending the • Continued weak primary demand, value of our products especially in consumer discretionary • Favorable raw material and energy • Expect normal seasonal declines across costs in the specialties
Slide 11: Modest market recovery and circular investments expected to drive strong growth in 2025
Modest market recovery and circular investments are expected to drive strong growth in 2025 • Modest growth from a low base across end markets o Innovation driving growth above underlying end-market trends in our specialties • Continued ramp-up of earnings from the Kingsport methanolysis facility •
Slide 12: Appendix
Appendix 12
Slide 13: FY2024 underlying assumptions and modeling items
FY2024 underlying assumptions and modeling items Updated • Capital expenditures ~$625 million; previously $650-700 million • Interest expense of ~$200 million; previously ~$205 million • Corporate ‘Other’ adjusted Loss Before Interest and Taxes of ~($205) million for FY24; previous ~($200 million) •
Eastman Chemical Company — Q3 2024 Earnings Presentation on 6ix