Eastman Chemical Tritan Picked for Panasonic Food Processors

Zacks Equity Research Published on November 29, 2017

Eastman Chemical Company’s (EMN - Free Report) Tritan copolyester has been selected by Panasonic, a global leader in innovative electronics technologies, as a key material in the latter’s new line of food processors, models MK-F800, 500, and 300. Tritan’s tough properties combined with the high-powered food processors’ cutting edge technology and sleek design will help consumers use professional food preparation techniques at home.

Each food processor will feature a clear, durable jug made from BPA-free Tritan with a maximum capacity of 2.5 L. A great fit for this new product line, Tritan is one of the few materials that meets Panasonic’s high-quality standards of clarity, chemical resistance, toughness and heat resistance. Additionally, it has unique properties that enhance the food processors’ overall functionality and safety.

Tritan is dishwasher safe thus making cleaning quick and easy. Its high heat resistance, chemical resistance against oils and cleaners, and inherent toughness give it the durability needed for repeated use.

Eastman Chemical has underperformed the industry it belongs to over the last three months. The company’s shares have moved up 6.9% over this period, compared with roughly 11% gain recorded by the industry.

The company expects to drive growth on the back of innovation and high margin products amid an uncertain global business environment. Eastman Chemical expects adjusted earnings per share growth in 2017 to be toward the top end of the earlier projected range of 10-12% year over year, excluding the financial impact of the Kingsport operational incident.

The company’s Kingsport coal gasification area suffered an operational incident on Oct 4, However, there were no reports of any adverse impact on the environment or on human health. The company noted that all areas of the manufacturing facility have resumed operations with the exception of coal gasification operations. The coal gasification area is expected to be operational by the end of the fourth quarter.

Though Eastman Chemical is still assessing the financial impact of the incident, it is expected to reduce operating earnings to $50-100 million. The company expects costs associated with the incident to be around $100 million in the fourth quarter.

Eastman Chemical Company Price and Consensus

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