Eastman Chemical : 3rd Quarter - 2020 Presentation
10/29/2020 | 04:20pm EST
Third-Quarter 2020 Financial Results
Mark Costa, Board Chair & CEO
Willie McLain, SVP & CFO
October 29, 2020
These slides should be reviewed with the accompanying prepared remarks posted on our website.
During this presentation, we make certain forward-looking statements concerning plans and expectations for Eastman Chemical Company. We caution you that actual events or results may differ materially from our plans and expectations. See these slides, the accompanying prepared remarks posted on our website, the remarks during the conference call and webcast, the third quarter 2020 financial results 8-K and news release, and our Form 10-Q filed for second quarter 2020 and Form 10-Q to be filed for third quarter 2020 for risks and uncertainties which could cause actual results to differ materially from current expectations.
GAAP and Non-GAAP financial measures
Earnings referenced in this presentation and the accompanying prepared remarks exclude certain non-core and unusual items. In addition, third quarter 2020 and 2019 earnings use an adjusted effective tax rate that is the forecasted tax rate for the full year as of the end of the interim period and earnings per share are calculated with an adjusted tax rate that excludes the provision for income
taxes for non-core and unusual items. "Free Cash Flow" is cash provided by operating activities minus net capital expenditures (typically cash used for additions to properties and equipment). "EBIT Margin" is Earnings Before Interest and Taxes ("EBIT") adjusted for non-core and unusual items divided by GAAP sales revenue. "EBITDA" is Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted for non-core and unusual items. "Net Debt" is total borrowings less cash and cash equivalents. Reconciliations to the most directly comparable GAAP financial measures and other associated disclosures, including a description of the excluded and adjusted items, are available in our third quarter 2020 financial results news release which is posted in the "Investors" section of our website and in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Forms 10-K and 10-Q filed with the SEC for the periods for which non-GAAP financial measures are presented.
Third-quarter 2020 highlights
First nine months free cash flow at record levels
Strong sequential earnings increase driven by innovation and end-market diversification
Focused execution on controllable items including cost reductions and technology licensing
Innovation driving several wins across our sustainable product offerings leveraging molecular recycling
Named by The Wall Street Journal as one of the "100 Most Sustainably Managed Companies"
• Low odor, low-emissive specialty products well-positioned to meet do-it-yourself demand growth in 2020
• Significant investment in application development capabilities focused on long-term macro trends
• Consumer sensitivity about indoor air quality serving as ongoing growth catalyst for our innovation investments
Innovation and market development driving resilience during pandemic
Significant 3Q20 performance ahead of underlying end- markets across all major regions
Eastman team enabled our dealers to reopen for business with best-in-class industry practices and new digital campaigns
New product and digital offerings in 2021 to support
Eastman Chemical Company published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 21:19:16 UTC