Eastman Chemical Co. said Thursday its fourth-quarter profit rose 44 percent on improved results from most of its businesses, but sales fell short of expectations and the company guided below consensus for fiscal 2007.
Quarterly earnings grew to $95 million, or $1.12 per share, from $66 million, or 81 cents per share, in the prior-year period. Excluding asset impairments and other items, Eastman said it earned $1 per share in the recent quarter.
Sales rose to $1.75 billion from $1.73 billion as higher volumes offset lower selling prices.
Wall Street, on average, expected earnings of 93 cents per share on higher revenue of $1.78 billion.
Eastman said it recorded a $12 million gain in the quarter on an award from the Army related to reimbursement for benefits being provided to a subsidiary's retirees.
Eastman's operating earnings fell to $108 million from $112 million in the prior-year quarter, as weaker results in its performance polymers segment offset earnings for its other four divisions, excluding depreciation costs and other items.
For the full year, Eastman said earnings fell to $409 million, or $4.91 per share, from $557 million, or $6.81 per share. Revenue grew to $7.45 billion from $7.06 billion.
Looking ahead, Eastman expects first-quarter earnings per share above 90 cents, compared with analysts' expectations of $1.17. For the full year, Eastman sees 2007 earnings per share less than 10 percent below Wall Street's consensus of $4.53.
Eastman shares fell 84 cents to close at $61.93 on the New York Stock Exchange, and dipped 94 cents to $60.99 after-hours.
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