KINGSPORT, Tenn. (AFX) - Eastman Chemical Co. said Thursday its second-quarter profit dropped 45 percent, as high material and energy costs dragged on results.
Quarterly net income fell to $114 million, or $1.37 per share, from $206 million, or $2.51 per share, in the year-ago period. Sales grew to $1.93 billion from $1.75 billion.
Excluding special items, the company posted per-share earnings of $1.40, compared with $1.59 the previous year.
Wall Street had expected a profit of $1.37 per share on sales of $1.87 billion, according to an analyst poll by Thomson Financial.
Results were hurt by falling operating earnings from two of the company's segments, performance polymers and specialty plastics, mostly due to increased costs. Eastman Chemical's other units reported income gains.
Looking ahead, Eastman Chemical sees high material and energy costs continuing, especially for paraxylene and propane. Chairman and Chief Executive Brian Ferguson said he expects the second half of the year to make up about 40 percent of the full year's profit.
Eastman Chemical shares closed down $1.87, or 3.6 percent, at $50.31 on the New York Stock Exchange. Shares have traded between $44.10 and $58.15 over the past 52 weeks.
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