Eastman Chemical Company (EMN) has reported a 10.76 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $278 million, or $1.89 a share in the quarter, compared with $251 million, or $1.69 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $269 million, or $1.83 a share compared with $255 million or $1.71 a share, a year ago. Revenue during the quarter went up marginally by 3 percent to $2,303 million from $2,236 million in the previous year period. Gross margin for the quarter contracted 122 basis points over the previous year period to 27.14 percent. Total expenses were 82.76 percent of quarterly revenues, up from 82.16 percent for the same period last year. That has resulted in a contraction of 61 basis points in operating margin to 17.24 percent.
Operating income for the quarter was $397 million, compared with $399 million in the previous year period.
However, the adjusted operating income for the quarter stood at $397 million compared to $406 million in the prior year period. At the same time, adjusted operating margin contracted 92 basis points in the quarter to 17.24 percent from 18.16 percent in the last year period.
“Our solid first-quarter results once again demonstrate the strength and resiliency of our portfolio,” said Mark Costa, board chair and chief executive officer. “We delivered strong volume growth in our specialty businesses driven by innovative, high margin products which are accelerating demand growth in attractive, niche markets. We also continue to benefit from aggressive cost management and disciplined capital allocation. We remain confident in the resiliency of our portfolio and the sustainability of our strong cash flow going forward.”
Operating cash flow improves marginally
Eastman Chemical Company has generated cash of $52 million from operating activities during the quarter, up 1.96 percent or $1 million, when compared with the last year period. The company has spent $136 million cash to meet investing activities during the quarter as against cash outgo of $126 million in the last year period.
Cash flow from financing activities was $102 million for the quarter as against cash outgo of $16 million in the last year period.
Cash and cash equivalents stood at $197 million as on Mar. 31, 2017, down 2.48 percent or $5 million from $202 million on Mar. 31, 2016.
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