Eastman Chemical Company (EMN - Free Report) launched Saflex View ST — a next generation multi-angle wedge interlayer for automotive glass that improves distortion in heads-up displays (HUD) for short and tall drivers. The latest product will benefit drivers outside the nominal height range to correct the image distortion (ghosting) in complex windshields. The product hasalready been made available commercially.
Saflex View ST comes with the multi-angle wedge accounts for the different wedge angles required at each position of the windshield to help eliminate ghosting. It ensures clear HUD image.
Additionally, Saflex View ST can be combined with a variety of Eastman Chemical technologies, which address safety, security and acoustics issues.
Eastman Chemical’s shares have moved up 32.2% over a year, outperforming the industry’s 26.9% gain.
Eastman Chemical expects to drive growth on the back of innovation and high-margin products amid an uncertain global business environment. Eastman Chemical believes that disciplined capital allocation and aggressive cost-management policies might contribute to earnings and offset challenges faced by the company in Fibers and ethylene pricing.
Factoring in strong first-half 2017 results, the company expects adjusted earnings per share for 2017 to grow 10-12% year over year, up from its earlier view of 8-12%.
Eastman Chemical remains focused on cost-cutting and productivity actions. The company aims to achieve $100 million of cost savings in 2017. The company remains committed to reduce debt and boost shareholder returns.
Eastman Chemical is also gaining from synergies of acquisitions, especially Taminco Corporation. The Taminco acquisition has provided attractive cost and revenue synergy opportunities.
However, Eastman Chemical continues to witness pricing pressure in some businesses. Lower prices of acetate tow are hurting its Fibers unit. Moreover, the company expects ethylene prices to be lower in second-half 2017 vis-à-vis the first half. As such, ethylene margins are expected to be under pressure in the second half. The company is also exposed to a volatile raw material pricing environment.
Eastman Chemical Company Price and Consensus
Zacks Rank & Key Picks
Eastman Chemical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space are Arkema S.A. (ARKAY - Free Report) , Kronos Worldwide (KRO - Free Report) and Akzo Nobel N.V. (AKZOY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arkema has an expected long-term earnings growth of 12.8%.
Kronos Worldwide has an expected long-term earnings growth of 5%.
Akzo Nobel has an expected long-term earnings growth of 11.1%.
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