KINGSPORT, Tenn., October 25, 2007 – Eastman Chemical Company (NYSE:EMN) today announced earnings of $0.24 per diluted share for third quarter 2007 versus earnings of $1.15 per diluted share for third quarter 2006. Excluding the items described in the following paragraph, third-quarter 2007 earnings were $1.26 per diluted share, while third-quarter 2006 earnings were $1.24 per diluted share. For reconciliations to reported company and segment earnings, see Tables 3, 5, and 6 in the accompanying third-quarter 2007 financial tables.
Included in the results for third quarter 2007 were asset impairments and restructuring charges of $120 million ($80 million after tax), primarily related to the recently announced agreements to sell the company's PET polymers facilities in Mexico and Argentina, and accelerated depreciation costs of $9 million resulting from continuing restructuring actions at the company's Longview, Texas, and Columbia, S.C., facilities. Third quarter 2006 results included asset impairments and restructuring charges of $13 million.
"We continue to deliver strong results throughout the company with the exception of our PET business," said Brian Ferguson, chairman and CEO. "This excellent performance reflects focused efforts of Eastman people around the world during ongoing volatility in our key raw material and energy costs. Regarding the PET business, we continue to make good progress on implementing strategic actions that will substantially improve the results of this business."