Eastman Chemical Company’s (EMN - Free Report) Specialty Plastic Business is implementing a global list and competitive price hike for all Copolyesters products effective Oct 1, or as contracts permit. Increased operating costs, especially of raw materials, have led to the hike.
The increased amount is 9 cents per pound, 20 cents per kilogram, euro 17 cents per kilogram, JPY 22 per kilogram and CNY 1.37 per kilogram.
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 solid earnings growth in the first half of 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 14.8%, the industry saw 0.1% decline.
The company is focused on productivity and cost-cutting actions, which are helping it offset raw material cost inflation and other cost headwinds. Eastman Chemical expects $100 million of cost savings under its cost-reduction program in 2018.
Eastman Chemical is seeing a rise in raw materials costs and the same is expected to persist in the second half of 2018. Nevertheless, the company’s productivity measures and actions to raise selling prices of products are likely to help offset the impact of these headwinds.
Eastman Chemical Company Price and Consensus
Zacks Rank & Stocks to Consider
Eastman Chemical is a Zacks Rank #3 (Hold) stock.
Some better-ranked companies in the basic materials space are Ingevity Corporation (NGVT - Free Report) , Celanese Corporation (CE - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1 (Strong Buy). The company has gained 63.8% 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 gained 10.3% in a year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2 (Buy). Shares of the company have risen 12% in a year’s time.
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