— By Marilyn Gerlach — 

Eastman (Kingsport, Tennessee, USA; www.eastman.com) saw sales rising 2% in 2024 to USD 9.38 bn (EUR 9 bn), while net income advanced to a profit of USD 905 mn from USD 894 mn. The US group benefitted from an end of customer destocking, with results flattered by gains at its Advanced Materials division.

Eastman’s revenues profited from a 4% rise in sales volumes that were partially offset by 2% lower selling prices. The higher sales volume was driven by the end of destocking in most end markets and innovation-driven growth above end-market demand. This was particularly true for the Advanced Materials segment. The lower selling prices were primarily due to lower raw material and energy costs.

The company reported EBIT at USD 1.28 bn. While lower than the USD 1.30 bn reported in the year-earlier, the 2023 EBIT included the gain on the sale of Texas City Operations in the fourth quarter of 2023. Excluding the one-off gain, adjusted EBIT in 2023 was USD 1.1 bn – lower than the most recent figure. Eastman said its adjusted EBIT margin is therefore 13.8% for 2024, a 350-basis point improvement over the 11.9% in the year before. In terms of adjusted figures, earnings increased due to improved capacity utilisation, higher sales volume, and a favourable price-cost environment.

In terms of revenues, the Advanced Materials segment was the top performer, gaining 4% year-on-year to USD 3.05 bn from USD 2.93 bn on account of volume improvement. The segment bundles its businesses in copolyesters, advanced interlayers, and performance films. Growth above underlying end-market demand in automotive was driven by innovation in premium interlayers products.

Adjusted EBIT rose to USD 464 mn from USD 343 mn on account of improved capacity utilisation partially offset by operating costs associated with the Kingsport methanolysis and continued investment in growth. Eastman expects adjusted EBIT for the segment to come in at USD 500 mn to USD 525 mn for the current full-year, citing as a tailwind the Kingsport methanolysis revenue and cost cuts.

Related: Eastman announces further expansion of PVB films in Belgium

Sales in the company’s Additives & Functional Products segment rose 1% to USD 2.86 bn, thanks to 4% higher sales volume mostly offset by 3% lower selling prices. There was growth in stable end-markets, including personal care, aviation, and water treatment. Lower selling prices were in part driven by cost pass-through contracts. Adjusted EBIT for the unit was USD 490 mn versus USD 436 mn the year earlier and is forecast to be more than USD 500 mn this year.

Sales at Chemical Intermediates were flat at USD 2.13 bn as the 3% higher sales volume was offset by 3% lower selling prices. Reported EBIT for the division includes the gain on the sale of Texas City Operations. Adjusted EBIT decreased to USD 101 mn from USD 111 mn as lower spreads were partially offset by lower operating costs. The company expects the figure for this year to come in slightly above the 2024 level.

Revenues at Fibres expanded 2% to USD 1.32 bn due to 2% higher selling prices, which in turn could be traced to higher acetate tow contract prices. The sales volume was unchanged as strong growth in Naia, a cellulosic fibre made from sustainable sourced wood pulp, was offset by a modest decline in acetate tow. The adjusted EBIT improved to USD 454 mn from USD 422 mn. For 2025, Eastman has pegged it lower to USD 400 mn to USD 425 mn, due to higher energy costs and a stronger US dollar, among other reasons.