Brian Ferguson, CEO of Eastman Chemical Company (Kingsport, Tennessee / USA; www.eastman.com), was "extremely pleased" with the development of the group´s overall business in 2005. Fourth quarter and per-share earnings were "the best in 10 years" and full year sales revenue "the best in company history."

The Voridian division, which encompasses PET activities, showed some weakness in the fourth quarter, when hurricanes, low capacity utilisation rates in Europe and Latin America, as well as Asian PET imports into North America, affected volumes negatively. However, higher selling prices helped in part to compensate.

External sales of Voridian´s Polymers unit declined by 6% in the fourth quarter to USD 575m, with higher selling prices not quite able to make up for an 18% drop in sales volumes. Operating income declined from USD 14m to USD 13m.

For full year 2005, Polymers performed better, with external sales up 15% to USD 2.5 bn and higher selling prices more than offsetting a 4% decline in volume sales. Adjusted for impairment charges in 2004, operating profit rose more than six fold year-on-year to USD 159m. Ongoing restructuring projects and improved market conditions, for PE and for PET polymer in North America, contributed positively.

The Eastman division´s Specialty Plastics unit increased its external sales 12% to 718m in full year 2005, thanks to higher selling prices. Volume sales were flat, with stronger volumes for co-polyester products unable to cancel out lower acetate tonnage. Hurricane-related higher raw materials and energy costs, along with increased overall spending for expansion, depressed the unit´s operating income by 3% to USD 64m.

e-Service:
Comprehensive Eastman financial report on Q4 and full year 2005, including tables as PDF document (100 KB)