Back to top

Image: Bigstock

Eastman Chemical (EMN) Hikes Prices of Choline Chloride

Read MoreHide Full Article

Eastman Chemical Company (EMN - Free Report) is raising prices of Choline Chloride effective Jan 1, 2019 or as contracts permit.

In North and Latin America, the company raises Choline Chloride, Feed Grade prices by 20 cents per lb and in Asia Pacific, by $50/MT. In Europe, Middle East and Africa (EMEA), the company is increasing prices of the same product by €45/MT.

Eastman Chemical is taking actions to hike selling prices of these products in the wake of higher operating costs.
 
Higher selling prices of most product lines contributed to revenue growth at the company’s Additives & Functional Products and Chemical Intermediates segments in the third quarter of 2018.

In a year’s time, shares of Eastman Chemical have outperformed the industry it belongs to. The stock has lost around 23.7% compared with the industry’s fall of 28%.


 

During third-quarter earnings call, Eastman Chemical noted that strong volume gains in the specialty businesses, disciplined cost management and a lower effective tax rate helped it achieve year-over-year adjusted earnings per share growth of 13% during the first nine months of 2018. The company continues to expect a year-over-year adjusted earnings per share rise of 10-14% for 2018. It also estimates to generate roughly $1.1 billion of free cash flow in 2018.

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

Eastman Chemical has been seeing a rise in raw materials costs, mostly in its chemical intermediates business as witnessed in the third quarter. Raw materials cost woe is anticipated to persist through the remainder of 2018. Nevertheless, the company’s productivity and price-hike actions are likely to enable it to offset the input cost pressure.

Eastman Chemical Company Price and Consensus

 

Zacks Rank & Stocks to Consider

Eastman Chemical currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , The Mosaic Company (MOS - Free Report) and Cameco Corporation (CCJ - Free Report) .
 
CF Industries has an expected earnings growth rate of 748% for the current year and a Zacks Rank #1 (Strong Buy). The stock has inched up 0.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mosaic has an expected earnings growth rate of 75.2% for the current year and a Zacks Rank #2 (Buy). The company’s shares have rallied 22.8% in the past year.

Cameco has an expected earnings growth rate of 66.7% for the current year and a Zacks Rank #2. Its shares have gained 11.8% in a year’s time.

3 Medical Stocks to Buy Now
 
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
 
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
 
See them today for free >>

Published in