Basic EPS was lower in Q2 2024 primarily because **net earnings decreased** from **$272 million to $230 million**, driven by a **4% decline in selling prices**, **unfavorable price-cost dynamics** (with the Chemical Intermediates segment’s EBIT falling from **$39 million to $22 million**), and **weak demand trends** in certain end markets. Although share repurchases reduced the weighted average shares outstanding slightly (from **118.8 million to 117.3 million**), this did not fully offset the impact of the lower net earnings.  **[0000915389-24-000189_ex99_0120240630cctables.htm:0]** **[0000915389-24-000189_ex99_0120240630cctables.htm:5]** 

Why was Basic EPS lower in Q2 2024?

The **lower EBIT in Q4 2024** was primarily due to the absence of a significant **non-core divestiture gain** that bolstered Q4 2023 by **$323 million**.  **[0000915389-25-000007_ex99_0120241231cctables.htm:8]** **[0000915389-25-000007_ex99_0120241231cctables.htm:6]**  Additionally, Q4 2024 recorded **$10 million in asset impairments, restructuring, and other charges** compared to **$15 million** in Q4 2023, and while favorable mark-to-market adjustments (a **$54 million gain** in Q4 2024 versus a **$53 million loss** in Q4 2023) partially offset the decline, the overall effect remained a lower EBIT.  **[0000915389-25-000007_ex99_0120241231cctables.htm:8]** **[0000915389-25-000007_ex99_0120241231cctables.htm:6]** 

What factors contributed to the lower EBIT in Q4 2024?

The **increase in Q3 2024 sales** was driven primarily by a **higher sales volume/mix**, which contributed about **$186 million** to the growth, and a **modest price effect** that added roughly **$15 million**. The improved sales volume/mix resulted from factors such as the **end of customer inventory destocking**, enhanced market conditions, and innovation across key segments. Additionally, regional growth—especially in **Asia Pacific (13%)** and **Latin America (13%)**—supported the overall increase in sales revenue.  **[0000915389-24-000227_emn-20240930.htm:32]** **[0000915389-24-000225_ex99_0120240930cctables.htm:0]** **[0000915389-24-000225_ex99_0120240930cctables.htm:1]** **[0000915389-24-000225_ex99_0120240930cctables.htm:4]** **[0000915389-24-000227_emn-20240930.htm:38]** 

What drove the increase in sales in Q3 2024?

In Q2 2024, net earnings dropped due to a combination of factors. **Lower selling prices**—which were influenced by a 4% decline due to lower raw material costs—more than offset a slight increase in sales revenue and a 6% increase in sales volume/mix.  **[0000915389-24-000189_ex99_0120240630cctables.htm:0]** **[0000915389-24-000192_emn-20240630.htm:31]**  Additionally, **segment-specific declines in EBIT** played a crucial role, with the Additives & Functional Products segment experiencing a **12% decline** and the Chemical Intermediates segment a **44% decline** because of unfavorable sales volume/product mix and pricing pressures.  **[0000915389-24-000192_emn-20240630.htm:35]** **[0000915389-24-000192_emn-20240630.htm:36]**  **Rising operating costs**, including higher selling, general, and administrative expenses plus other charges such as environmental costs, further contributed to the drop.  **[0000915389-24-000192_emn-20240630.htm:31]** **[0000915389-24-000189_ex99_0120240630cctables.htm:5]**  Lastly, a **$13 million interim tax provision adjustment** negatively impacted net earnings.  **[0000915389-24-000192_emn-20240630.htm:30]** **[0000915389-24-000192_emn-20240630.htm:34]** 

Why did net earnings drop in Q2 2024?

The **Basic EPS at Q1 2024** increased from **$1.13 to $1.40** due to several factors. First, **net earnings attributable to Eastman** rose significantly from **$134 million in Q1 2023 to $165 million in Q1 2024**, showing improved operational performance.  **[0000915389-24-000130_ex99_0120240331cctables.htm:0]** **[0000915389-24-000133_emn-20240331.htm:4]**  Additionally, a **lower provision for income taxes** (a decrease from **$60 million to $49 million**) reduced the tax burden, which positively affected the EPS.  **[0000915389-24-000130_ex99_0120240331cctables.htm:6]** **[0000915389-24-000133_emn-20240331.htm:30]**  Furthermore, **stable operating costs**—with selling, general, and administrative expenses remaining flat and a slight decrease in research and development expenses—helped maintain margins.  **[0000915389-24-000133_emn-20240331.htm:4]** **[0000915389-24-000130_ex99_0120240331cctables.htm:3]**  Finally, the stability in the number of shares outstanding (from **118.9 million to 117.4 million**) ensured that the rise in net earnings directly increased the EPS.  **[0000915389-24-000133_emn-20240331.htm:20]** 

What contributed to the rise in Basic EPS in Q1 2024?

2be57724ac52fb8705aa82511708704a310c027ab5bdfe56cd74fdf4cbf1d4c9

The significant increase in cash and cash equivalents in **Q4 2024** was primarily driven by strong cash generation from operating activities. **Eastman Chemical Company** generated **$540 million** in cash from operations, largely due to net earnings of **$331 million**, non-cash adjustments including **$129 million** for depreciation and amortization, and favorable changes in working capital such as a **$182 million decrease in trade receivables** and a **$152 million increase in trade payables**. These operating cash inflows more than offset the outflows from investing activities (which used **$132 million**) and financing activities (which resulted in a net outflow of **$181 million**), along with a **$12 million** negative impact from exchange rate changes.  **[0000915389-25-000007_ex99_0120241231cctables.htm:0]** **[0000915389-25-000007_ex99_0120241231cctables.htm:10]** 

What drove the significant increase in cash and cash equivalents in Q4 2024?

The decline in short-term borrowings in Q3 2024 was primarily driven by the **redemption of $250 million aggregate principal amount of the 3.80% notes due in March 2025** during the third quarter, and also by the **repayment of $43 million 7.625% debentures** in the prior quarter, which continued to impact the overall borrowings profile.  **[0000915389-24-000227_emn-20240930.htm:41]** **[0000915389-24-000227_emn-20240930.htm:10]** 

What factors contributed to the decline in short-term borrowings in Q3 2024?

The significant drop in trade receivables in Q4 2024 was primarily due to **seasonal declines in demand** across key end markets and **improved collections** that led to a **$182 million decrease** during the quarter.  **[0000915389-25-000007_ex99_0120241231cctables.htm:10]** **[0000915389-25-000007_ex99_0120241231cctables.htm:0]** 

Why did trade receivables drop significantly in Q4 2024?

In Q4 2024, the rise in total assets at Eastman Chemical Company was driven by several factors. **Current assets** saw significant gains, with **cash and cash equivalents increasing from $548 million to $837 million**—bolstered by strong operating cash flows—and **inventories rising from $1,683 million to $1,988 million**. Additionally, there was a modest increase in **net properties and equipment** (from $5,548 million to $5,615 million) due to capital expenditures, along with small gains in **other noncurrent assets** (rising from $820 million to $833 million).  **[0000915389-25-000012_emn-20241231.htm:84]** **[0000915389-25-000007_ex99_0120241231cctables.htm:10]** **[0000915389-25-000012_emn-20241231.htm:136]** 

What factors contributed to the rise in total assets in Q4 2024?

dc0ffe8a5877f7b4c994d98e3b62956c947eaa214d1465a81c9ba7e70978dbd9

Operating Cash Flow was **significantly lower in Q3 2024** because of **higher working capital requirements** and **increased variable compensation payments**. Specifically, the net cash provided by operating activities decreased by **$118 million** (from **$514 million** in Q3 2023 to **$396 million** in Q3 2024) due to smaller decreases in trade receivables and inventories and a less pronounced decrease in trade payables, combined with variable compensation payments rising from **$24 million** in Q3 2023 to **$64 million** in Q3 2024, which further contributed to the reduction in cash flow.  **[0000915389-24-000225_ex99_0120240930cctables.htm:0]** **[0000915389-24-000225_ex99_0120240930cctables.htm:9]** 

Why was Operating Cash Flow significantly lower in Q3 2024?

The boost in operating cash flow for Q4 2024 was driven primarily by **higher net earnings** (increasing from **$311 million** in Q4 2023 to **$331 million** in Q4 2024) and favorable changes in working capital—most notably, a **larger decrease in trade receivables** (from **$58 million** to **$182 million**) and **lower variable compensation payments** (reducing from **$69 million** to **$55 million**). These gains, however, were partly offset by a significant **inventory build-up** (changing from a **$54 million** reduction to a **-$122 million** impact) and more adverse **other items** (worsening from **-$73 million** to **-$145 million**).  **[0000915389-25-000007_ex99_0120241231cctables.htm:10]** 

What contributed to the boost in Operating Cash Flow in Q4 2024?

The documents do not contain information regarding the key drivers behind the higher **Free Cash Flow** in **FY 2024** [N/A].

What were the key drivers behind the higher Free Cash Flow in FY 2024?

8dcb4fff01ac0bb61492723ecdf69cf540b9ed2a3941ffe58896b1fcdbc66da6

Cash and cash equivalents (USD, millions)

167514d14022a7656e351e437b0e2e966580f892972f446283b031beedbf7947

Net earnings (USD, millions)

Depreciation and amortization (USD, millions)

Benefit from deferred income taxes (USD, millions)

(Increase) decrease in trade receivables (USD, millions)

(Increase) decrease in inventories (USD, millions)

Increase (decrease) in trade payables (USD, millions)

Pension and other postretirement contributions (in excess of) less than expenses (USD, millions)

Variable compensation payments (in excess of) less than expenses (USD, millions)

Other items, net - Operating activities (USD, millions)

Net cash used in operating activities (USD, millions)

Additions to properties and equipment (USD, millions)

Government incentives (USD, millions)

Other items, net - Investing activities (USD, millions)

Net cash (used in) provided by investing activities (USD, millions)

Net increase (decrease) in commercial paper and other borrowings (USD, millions)

Proceeds from borrowings (USD, millions)

Repayment of borrowings (USD, millions)

Dividends paid to stockholders (USD, millions)

Other items, net - Financing activities (USD, millions)

Net cash provided by financing activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

Net change in cash and cash equivalents (USD, millions)

Cash and cash equivalents at beginning of period (USD, millions)

Cash and cash equivalents at end of period (USD, millions)

4e50f6e87cd63739afe3e1133ffa1d750dbd78dd7ad0a52b790ad9f7454c091a

Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Research and Development Expenses (USD, millions)

Asset Impairments, Restructuring, and Other Charges, Net (USD, millions)

Other (Income) Charges, Net (USD, millions)

Earnings Before Interest and Taxes (USD, millions)

Net Interest Expense (USD, millions)

Earnings Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Earnings (USD, millions)

Less: Net Earnings Attributable to Noncontrolling Interest (USD, millions)

Net Earnings Attributable to Eastman (USD, millions)

Basic Earnings per Share Attributable to Eastman (USD)

Diluted Earnings per Share Attributable to Eastman (USD)

bfe13f56513fc3ed2793da20c9f39fb0ae1f641642439adb90b6856b175bcd66

d4c692451b3d9c2699ffd02d5c4310094efbc9e584007d5743af08cb4f52359d

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

554914e67d3a57dddac39f36171fc98ceaec4fdb2f22a4adedc6e8aa9316fa4d

7307cfa116ed1ffa0cc2e05f9596b8f35391685363d30c4b7fe2609a857b8efe

4420f3b1d6887923fa076fcaf4644cbd27be7faffc8f5639d00d85d2adbb8d4b

b833c0e98192ffa860d4e8d69689850802307f046aec20ceaa1eeef89d0c2410

United States and Canada

Europe, Middle East, and Africa

Asia Pacific

Latin America

- United States

- All foreign countries

Total Revenue

ebb7766ba82fabf90b99a1d3437041272bb3297d098858355474fa477bff4cc2

EASTMAN CHEMICAL (EMN)

Financials