Eastman Revenue Soars, Considers Divestiture of PET Business

Eastman Chemical reported a first-quarter profit that soared as sales jumped in all five of its operating units. For the period, the company said net income was $101 million, or $1.37 per share, compared with $2 million, or 3 cents per share, in the year-ago period.

Analysts expected earnings of $1.15 per share, according to Thomson Reuters I/B/E/S. Revenue at the Kingsport, Tennessee-company rose 38.5% to $1.56 billion. Analysts expected $1.29 billion in revenue. The company had warned in March that a recent shutdown at a Texas plant would cut first-quarter earnings by at least 20 cents per share.

For the second quarter, Eastman expects to earn $1.50 to $1.60 per share. Analysts expect $1.19 per share. For the year, the company expects to earn $5 to $5.25 per share. Analysts expect $4.51 per share. "With volumes recovering and product mix improving, our first-quarter earnings demonstrated the strength of our core businesses," Chief Executive Jim Rogers said in a statement.

Despite the positive financials Eastman announced it will review strategic options, including a possible divestiture, for its PET business in the Performance Polymers segment. The company has retained Bank of America Merrill Lynch as its exclusive financial advisor for the strategic review.