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Eastman Chemical (EMN) Hikes Prices of Glycol Products

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Eastman Chemical Company (EMN - Free Report) is raising prices of Glycol Ethers and Glycol Ethers Esters, effective Sep 15, or as contracts permit.

In North and Latin America, the company is lifting off-list prices of EB and DB Solvent as well as EB and DB Acetate by 3 cents per lb each. Eastman Chemical is taking appropriate pricing actions in response to rising raw material costs.

During the second-quarter earnings call, Eastman Chemical stated that strong volume gains in the specialty businesses and disciplined cost management have helped the company achieve strong earnings growth in first-half 2018. The company continues to expect year-over-year growth of 10-14% in adjusted earnings per share for 2018.

In a year’s time, shares of Eastman Chemical have outperformed the industry it belongs to. While the stock has gained around 18.1%, the industry saw a rise of 9.4%.



The company is focused on productivity and cost-cutting actions, which are helping it offset raw material cost inflation and other cost headwinds. In 2018, Eastman Chemical expects to deliver $100 million of cost savings, under its cost-reduction program.

Eastman Chemical is seeing a rise in raw materials costs and the same is expected to persist in the second half of 2018. It is exposed to volatility in ethylene prices as well. Nevertheless, the company’s productivity measures and actions to raise selling prices of its products are likely to help it offset the impact of these headwinds.
 

Zacks Rank & Stocks to Consider

Eastman Chemical is a Zacks Rank #3 (Hold) stock.

Some better-ranked companies in the basic materials space are Huntsman Corp. (HUN - Free Report) , Celanese Corp. (CE - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company has gained 23.9% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Celanese has an expected long-term earnings growth rate of 10% and carries a Zacks Rank #1. The stock has rallied 21.1% in a year.

Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Shares of the company have risen 15.1% in a year’s time.

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