Eastman Chemical Company, a global specialty materials company, announced its second-quarter 2023 financial results. Despite a persistently weak demand environment, the company demonstrated solid sequential improvement in earnings, driven by disciplined pricing, lower variable costs, and cost-saving initiatives. However, sales revenue decreased by 17% primarily due to a 15% lower sales volume/mix. The company continues to focus on what it can control, including price discipline, cost reduction, and working capital management, amidst a challenging global economic environment. Eastman is also making progress on its circular economy initiatives, with a target to produce material and realize revenue around year-end from its Kingsport, Tennessee, methanolysis facility.

For the full year 2023, Eastman expects to reduce its cost structure by more than $200 million net of inflation and remains on track with its full-year 2023 cash target with aggressive actions to reduce inventories. The company expects second half adjusted earnings per share (EPS) to be somewhat below the first half and for 2023 EPS to be between $6.50 and $7.00. In addition, Eastman continues to expect to generate $1.4 billion of operating cash flow in 2023.

--The Plastic Exchange