Eastman Chemical 3Q Net Income Edges Higher

KINGSPORT, Tenn. (AP) — Eastman Chemical Co. said Thursday its third-quarter net income inched higher as lower raw material costs helped offset a 26 percent drop in revenue.

The company, which makes chemicals, plastics and fibers used in everything from paints to furniture, also predicted better-than-expected results in the fourth quarter. Shares rose more than 3 percent in aftermarket trading.

Net income for the three-month period amounted to $101 million, or $1.38 per share, up from $100 million, or $1.33 per share, a year ago.

Revenue fell to $1.34 billion from $1.82 billion a year earlier. The 2008 period included some sales from now-divested businesses, but the company also said the decline was linked to lower selling prices and volumes.

The results beat analysts' expectations of $1.13 per share on revenue of $1.33 billion, according to a Thomson Reuters poll.

Chief Executive Jim Rogers said the company will benefit from cost reductions and a better product mix, but volatility in raw materials costs and a seasonal volume slowdown will likely impact fourth-quarter results. He predicted, however, that the company will report adjusted earnings above the high range of analysts' expectations of 75 cents to 85 cents per share.

Shares rose $1.81, or 3.2 percent, to $58 in after-hours trading Thursday, after closing up $1.29, or 2.4 percent, at $56.19.