Eastman Announces Second Quarter 2022 Financial Results

August 1, 2022 - Eastman Chemical Company (NYSE: EMN) releases its financial results for the second quarter of 202

Based on strong overall results in the first half, the company confirmed an adjusted EPS forecast of $5-$10 for 2022:

● Excluding the impact of the divestiture of rubber additives and adhesive resin product lines, second-quarter revenue increased 15% year-on-year

●Adjusted EPS increased by 15% year-on-year, mainly due to:

- Innovative growth model driving strong growth in diversified specialty product portfolio

- Sharp rises in prices for specialty products, helping spreads recover from their contractionary trend from 2021 and keep pace with rising raw material, energy and distribution costs

- Continued strong performance in chemical intermediates business

● Specialties to drive solid YoY growth in adjusted EPS in Q3

Eastman Chairman and Chief Executive Officer Mark Costa said, "The record second-quarter sales and adjusted EPS demonstrate that our entire company continues to perform well in a changing and challenging global economic environme.

Comparison of the performance of each business in the second quarter of 2022 and the second quarter of 2021

Specialty Materials - Sales revenue rose 10% as sales prices rose 13%, offsetting some of the unfavorable currency impa.

Sales prices rose across the business, led by specialty plastics, followed by advanced interlaye.

Strong pricing across the business restored spreads, offsetting some of the impact of continued growth in investment spending, driving a modest increase in adjusted EB.

Additives and Functional Materials– Sales rose 27% as selling prices rose 20% and volume/mix rose 11%, offsetting some of the unfavorable currency impa.

Led by Care Additives and Coating Additives, higher selling prices were due to higher raw material, energy and distribution expens.

Higher adjusted EBIT was driven by higher volumes/product mix and lower planned manufacturing repair cos.

Chemical Intermediates- Higher raw materials, energy and distribution expenses and continued tightening of the market environment pushed up selling prices by 19% and boosted sales by 1

Adjusted EBIT growth was driven by lower planned manufacturing repair costs and higher spreads on the functional amines and acetyl product lines outpacing lower spreads on selected olefin product lin.

Fibers– Higher raw materials, energy and distribution expenses drove a 12% increase in selling prices, but a slight decline in volume/product mix was somewhat unfavorable, with sales up

EBIT remained unchanged as higher selling prices offset higher raw materials, energy and distribution expenses, lower sales volumes and higher manufacturing cos.

cash flow

Cash generated from operating activities was $262 million in the first half of 2022 and $642 million in the first half of 202 The decline was primarily attributable to continued inflationary pressures, variable compensation expenses, and increased use of cash in working capital due to reduced cash earnings from divested EBIT.

Outlook for 2022

Commenting on his outlook for the full year 2022, Costa said: "In the second quarter, in the face of a changing and challenging global business environment, our sales and adjusted earnings per share set new records, which is a testament to Eastm.