The Zacks Analyst Blog Highlights: Eastman Chemical, Solutia, Celanese, The Dow Chemical and EI DuPont de Nemours

For Immediate Release

Chicago, IL – January 31, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Eastman Chemical Company (EMN - Analyst Report), Solutia Inc. (SOA - Snapshot Report), Celanese Corporation (CE - Analyst Report), The Dow Chemical Company (DOW - Analyst Report) and EI DuPont de Nemours and Company (DD - Analyst Report).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s Analyst Blog:

Eastman to Acquire Solutia

As part of its expansion strategy, Eastman Chemical Company (EMN - Analyst Report) announced its plans to acquire Solutia Inc. (SOA - Snapshot Report), a global leader in performance materials and specialty chemicals, for $3.4 billion in cash and stock. The transaction is expected to close in mid-2012.

As per the agreement, Solutia stockholders will receive $22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. Solutia, which emerged from bankruptcy in 2008, generated about 30% of its revenue from Asia-Pacific countries in 2010 and it expects to grow by a third by 2015.

Eastman believes this acquisition will leverage the company to expand its foothold in china. The company expects the transaction to be immediately accretive to earnings. Eastman expects 2012 EPS to be approximately $5 excluding acquisition-related costs and charges. Eastman is also increasing its 2013 EPS expectation to greater than $6.

Annual cost synergies are expected to be approximately $100 million by year-end 2013. Further, Eastman expects to realize significant tax benefits from Solutia’s historical net operating losses and other tax attributes that are expected to contribute to free cash flow of approximately $1.0 billion through 2013.

Eastman also recognizes the potential for meaningful revenue synergies by leveraging both companies’ technology and business capabilities and end-market overlaps, particularly in automotive and architecture.

Eastman intends to finance the cash portion of the purchase price through a combination of cash on hand and debt.

Recently, Eastman announced its reported fourth-quarter 2011 earnings of 71 cents per share compared with 70 cents per share a year earlier, missing the Zacks Consensus Estimate of 80 cents per share.

Revenues climbed 18% year over year to $1.7 billion, driven by increased selling prices and higher sales volumes. Operating earnings in the quarter increased to $163 million from $161 million in the fourth quarter of 2010.

For 2011, the company reported earnings of $4.56 per share compared with $3.48 per share in 2010.

Eastman battles with large multinational companies such as Celanese Corporation (CE - Analyst Report), The Dow Chemical Company (DOW - Analyst Report) and EI DuPont de Nemours and Company (DD - Analyst Report) across its major business segments.

Currently, Eastman has a Zacks #1 Rank (Strong Buy) for the short-term (1 to 3 months) and we maintain a long-term (more than 6 months) Neutral recommendation on the shares.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Read the full analyst report on EMN

Read the full analyst report on SOA

Read the full analyst report on CE

Read the full analyst report on DOW

Read the full analyst report on DD