Eastman Chemical Company (EMN - Free Report) will increase the selling prices of few products. The price hike will be effective from Apr 1 or as contracts permit.
The company will increase the price of Eastman NPG by 3 cents per lb in North America. Price of Benzoic Acid will also rise by 3 cents per lb.
Eastman Chemical is taking appropriate pricing actions amid an escalated raw material pricing environment. High selling prices drove revenues in the company’s Chemical Intermediates segment in fourth-quarter 2017.
Eastman Chemical’s shares have moved up 36.3% over a year, outperforming the 13.9% gain of the industry it belongs to.
In 2018, Eastman Chemical expects to drive growth on the back of investments, innovation and high margin products. A modestly lower tax rate will support earnings growth in 2018.
Eastman Chemical anticipates raw material and energy prices, especially for olefins, to be volatile this year. Eastman Chemical thus remains focused on cost-cutting and productivity actions, which will likely help it to offset raw material cost inflation and other cost headwinds. The company expects to achieve $100 million of cost savings in 2018 through its cost-reduction program. Its cost-reduction actions are expected to drive earnings in 2018. The company expects adjusted EPS growth in 2018 to be 8-12% year over year.
Eastman Chemical Company Price and Consensus
Zacks Rank & Other Stocks to Consider
Eastman Chemical has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the chemical space are LyondellBasell Industries N.V. (LYB - Free Report) , Kronos Worldwide Inc. (KRO - Free Report) and BASF SE (BASFY - Free Report) .
LyondellBasell has an expected long-term earnings growth rate of 9% and sports a Zacks Rank #1(Strong Buy). The company’s shares have moved up 21.1% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos has an expected long-term earnings growth rate of 5% and flaunts a Zacks Rank #1. Its shares have gained 52% over a year.
BASF has an expected long-term earnings growth rate of 6.7% and carries a Zacks Rank #2 (Buy). Its shares have moved up 8.2% in a year.
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