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Eastman Chemical posts higher 3Q earnings

The Associated Press

NEWS: Eastman Chemical Co.'s earnings improved in the third quarter, aided by growth in sales of the chemicals company's additives and advanced-materials products.

DETAILS: Revenue growth in the quarter was due to a pickup in sales volume at Eastman's additives and functional products and advanced-materials segments. Those gains partially offset lower revenue at the company's adhesives and plasticizers unit.

NUMBERS: The company reported earnings of $1.97 per share for the July-September period. That's up from earnings of 99 cents per share in the prior-year quarter. Revenue increased 3 percent to $2.34 billion from $2.26 billion. Excluding the impact of special items, Eastman's earnings were $1.68 per share. Analysts polled by FactSet expected adjusted earnings of $1.64 per share on revenue of $2.34 billion.

FUTURE: The company expects continued challenges in its adhesives and plasticizers business, as well as higher raw material and energy costs.

STOCK: Shares in the Kingsport, Tenn., company ended regular trading down 42 cents at $82.18. The stock shed another $1.68, or 2 percent, to $80.50 in after-hours trading following the release of the earnings report. Shares are up about 21 percent this year as of Thursday's close.