Eastman Q2 2024 Sales Revenues Up 2% on Higher Volumes

Eastman Chemical Company announced its Q2 2024 financial results. The company reported Q2 2024 sales revenues of $2.363 billion compared to $2.324 billion in Q2 2023, an increase of 2%, primarily due to a 6% increase in sales volume/mix, partially offset by a 4% decrease in selling prices.

The increase in sales volume/mix was due to the end of customer inventory destocking in most end markets. Weakness in the building and construction end market partially offset the improvement. The decrease in selling prices was due to lower raw material prices across all segments.

Adjusted EBITDA was $337 million in Q2 2024 compared to $323 million in Q2 2023. Net cash provided by operating activities was $367 million in Q2 2024 compared to $410 million in Q2 2023.

EBITDA increased primarily due to higher volumes/mix in Advanced Materials, partially offset by lower prices in Chemical Intermediates.

"We delivered strong second quarter results driven by revenue growth and strong sequential margin improvement," said Mark Costa, Chairman and CEO.

"We experienced a small seasonal increase in volumes, led by durable goods and automotive end markets. Underlying demand trends remain soft. Against this backdrop, the Eastman team remains focused on commercial and operational excellence. With customer inventory drawdown largely complete and end market demand stabilizing at lower levels, we continue to focus on controllable projects and leverage our innovation-driven growth model to deliver growth above our base end markets. We also continue to advance our circular platform and demonstrate our leadership in the circular economy. We continue to successfully serve our customers, demonstrated higher operating rates, and achieved a significant milestone with the introduction of hard-to-recycle feedstocks into the Kingsport methanolysis facility, while we also resolved startup issues."