EMN Eastman Chemical Co

Eastman Chemical Co. says it will significantly increase cost-cutting, following its second consecutive quarterly sales decline.

The company's shares, up 3% over the past 12 months, fell 3% to $76 in after-hours trading.

Eastman, which previously targeted about $200 million in annual savings, didn't specify by how much it would increase spending cuts but said it still targets adjusted earnings for the current year "that approach" last year's results.

In 2015, the company reported $7.28 a share in adjusted profit. Analysts surveyed by Thomson Reuters project $7 a share for 2016.

Founded in 1920 to produce chemicals for Eastman Kodak Co.'s photo business, Eastman was spun off from Kodak in 1994.

Tennessee-based Eastman, which makes chemicals, plastics and synthetic fibers used in such things soda bottles and cigarette filters, has been hit hard by the oil-price slump and economic slowdown, particularly in Asia.

The stronger U.S. dollar has also weighed on results, as more than half the company's sales are abroad.

Overall, Eastman reported a first-quarter profit of $251 million, or $1.69 a share, compared with $171 million, or $1.14 a share, a year earlier. Excluding acquisition-related charges and other items, profit fell to $1.71 a share from $1.84 a share a year earlier.

Revenue fell 8% to $2.24 billion.

Analysts surveyed by Thomson Reuters had projected $1.53 a share in adjusted profit on $2.31 billion in revenue.

Gross profit margin improved to 28.4% from 26.9% a year earlier.

The company is expected to release more information during a conference call with analysts on Friday morning.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

April 28, 2016 20:45 ET (00:45 GMT)

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