Eastman posted net income of $20 million, or 24 cents per share, down from $95 million, or $1.15 per share, a year earlier. Revenue fell 8 percent to $1.81 billion from $1.97 billion.

Excluding special items, net income rose 3 percent to $106 million, or $1.26 per share, versus $103 million, or $1.24 per share. Analysts polled by Thomson Financial expected earnings of $1.26 per share, on average, which typically exclude special items.

Restructuring costs included asset impairments and restructuring charges of $80 million related to sales of Eastman's PET (polyethylene terephthalate) polymer facilities in Mexico and Argentina. They also included depreciation costs of $9 million from restructuring its facilities in Longview, Texas, and Columbia, S.C. 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" despite "ongoing volatility in our key raw material and energy costs," Chairman and Chief Executive Brian Ferguson said in a statement.

Eastman shares rose 2 cents to $64.07 in after-hours trading, after dropping 12 cents to close at $64.05.