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Eastman Chemical

Gold Stevie Award Winner 2012, Click to Enter The 2014 American Business Awards

Company: Eastman Chemical, Kingsport, TN
Company Description: Eastman’s chemicals, fibers and plastics are used as key ingredients in products that people use every day. Approximately 13,500 Eastman employees around the world blend technical expertise and innovation to deliver practical solutions.
Nomination Category: Company / Organization Awards Categories
Nomination Sub Category: Company of the Year - Chemicals

Nomination Title: Eastman Chemical Company

Tell the story about what this nominated organization achieved since January 1 2012 (up to 525 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

As a globally diverse company, Eastman Chemical Company serves customers in approximately 100 countries and had 2012 pro forma combined revenues, giving effect to its Solutia acquisition, of approximately $9 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 13,500 people around the world. 2012 was a defining year for Eastman, as the company reached new highs in its financial performance, and with the successful acquisition of Solutia – the largest acquisition in company history – furthered its position as a world- class, specialty chemical company.

Financial Performance

Despite a weakened global economy, Eastman continued to build on its track record of delivering consistent, superior value with 2012 earnings from continuing operations of $5.38 per share*. This marked the third consecutive year of double digit earnings per share growth. During the year, the company demonstrated its financial strength and discipline by generating $1.1 billion in cash from operating earnings, considerably surpassing its 2011 total of $625 million. With this strong cash generation Eastman was able to invest in the continued growth of the company, as well as pay down a total of $250 million on the $1.2 billion Solutia acquisition term loan.

Product Capacity Expansions

The company completed capacity expansions in several major product lines to address the needs of customers in growing markets, such as transportation and building and construction, including:

•Saflex® PVB sheet adhesive interlayers at the Belgium manufacturing site;
•Completion of a retrofit of an Eastman 168™ non-phthalate plasticizer facility;
•Startup of an additional line of Eastman Tritan™ copolyester. In 2012, volume for Tritan increased almost 25 per cent as it penetrates the medicaland durable goods markets with its superior value proposition.
•Announced expansions due to be completed in 2013, such as joint ventures to produce acetate tow and hydrogenated hydrocarbon resins, as well as additional capacity for its premier Therminol® heat transfer fluid

Scheduled to come online in 2014.

Solutia Acquisition

The company was able to accomplish all the above expansions, as well as achieveone of its best safety records ever, all while integrating Solutia, the largestacquisition in Eastman’s history. The $4.8 billion acquisition of Solutia was completed mid-2012, while maintaining an investment grade credit rating. Through this transaction, Eastman further transformed to a portfolio of higher-margin, specialty businesses. Approximately two-thirds of sales revenue now comes from product lines that have #1 or #2 positions in the markets that they serve.

*Non-GAAP earnings per share excluding asset impairments and restructuringcharges and gains, early debt extinguishment costs, mark-to-market pension andOPEB gains and losses, and Solutia acquisition-related costs.

•Chemical and Engineering News’ 2012 “Company of the Year”
•#7 in Bloomberg Businessweek Top 50, listing of S&P 500 with best recent performance and outlook for the future
•Voted a “Most Honored Company” by Institutional Investor
•2012 ENERGY STAR® Partner of the Year
•2012 Frost & Sullivan New Product Innovation Award winner for automotive glazing materials •Eastman GEM™ Technology selected as Sustainable Product of the Year by Lipscomb Sustainable Business Summit
•Received Energy Efficiency Awards from American Chemistry Council for 19th Consecutive Year
•CEO Jim Rogers named one of the Top 40 Power Players by ICIS

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Provide a brief (up to 125 words) biography about the leader of this nominated organization:

James Rogers is Chairman and Chief Executive Officer of Eastman Chemical Company. Rogers joined Eastman in 1999 as Senior Vice President and Chief Financial Officer before being appointed CEO in January 2011.

Rogers led Eastman through three consecutive years of double digit earnings per share growth while maintaining Eastman’s commitment to corporate social responsibility and sustainability. In 2012, Rogers was named a “Top 40 Power Players” by the ICIS.

He serves on the Board of Directors for LORD Corporation, and is a member of the American Chemistry Council, the Business Roundtable, and The American Section of the Société de Chimie Industrielle. Locally, Rogers is involved with the Executive Board of the Sequoyah Council, Boy Scouts of America and the United Way of Greater Kingsport.