Issue 20 2017 - Eastman announces preliminary expectations for the impact of ABP operations

Eastman Announces Impact of ABP Operations Incident Preliminary Expectations
On October 4, an operational incident
occurred in the area of the coal gasification unit at Eastman headquarters Kingsport Base.
The incident did not cause serious injuries and will not have an impact
on human health and the environment.
With the exception of the coal gasification unit, all other production facilities have resumed normal operations
.
When the coal gasification plant is being repaired, the company has adopted other alternative processes to ensure the smooth operation
of all downstream derivative facilities.
The company is evaluating the financial impact of the event, including property insurance and business interruption insurance, and initially expects the impact of the event on operating income to be between 50 million ~ 100 million US dollars, and the impact will mainly occur in the fourth quarter
of 2017.

On October 10, the company released its latest full-year 2017 profit forecast, including preliminary expectations
for the impact of the incident at the Kingsport production site.
In terms of full-year 2017 earnings expectations, the overall business performance of the company as a whole was strong in the third quarter and continued strong growth
is expected in the fourth quarter.
In addition, the recent hurricane in the United States is not expected to have a significant financial impact on the company, and the impact on different businesses will vary
.
Therefore, in addition to the financial impact of the Kingsport production site incident, the company expects to achieve the previously set target
of 10%~12% increase in adjusted earnings per share in 2017 compared to 2016 at a high level.

Mark Costa, Eastman's chairman and chief executive officer, said, "The Eastman team responded decisively and professionally
during this event and recent hurricanes.
Thanks to these traits in Eastman's corporate culture, we were able to resume normal operations
safely and quickly.
Eastman is committed to being a reliable supplier and would like to thank our customers for their support
during an incident.
We are also very grateful to the local community and others for their assistance in the first place
.
”