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Eastman, NB Coatings Tie Up for Sustainable Automotive Plastic

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Eastman Chemical Company (EMN - Free Report) announced a partnership with NB Coatings to develop a solution using Treva engineering bioplastic for interior Class A painted surfaces. Eastman manufactures Treva with biobased and recycles content, with the recent commercialization of its carbon renewal technology. Treva, when painted with NB Coatings paint systems, can meet the requirements of Class A surface as defined by original equipment manufacturers (OEMs).

Innovations of Eastman meet the need of OEMs to produce parts with sustainable materials and help them achieve targets of sustainable content and petroleum-based plastic replacement.

Treva, obtained from sustainably managed forests, has biobased content of 42-46% and is certified by the U.S. Department of Agriculture’s (“USDA”) BioPreferred program. It benefits from Eastman’s proprietary carbon renewal technology that recycles waste plastic. Treva has exhibited high performance and lower environmental impact in automotive applications.

Eastman’s shares have declined 2.6% year to date, outperforming 22.5% decline of the industry it belongs to.

 

 

The chemical maker recorded a profit of $266 million or $1.93 per share in the third quarter, down roughly 35% from the year-ago profit of $412 million or $2.89. Its adjusted earnings per share of $1.94 missed the Zacks Consensus Estimate of $1.99.

The company’s revenues dropped around 9% year over year to $2,325 million in the quarter. Moreover, the top line missed the Zacks Consensus Estimate of $2,365.9 million.

Eastman anticipates sales volume and capacity utilization to decline in the fourth quarter due to the worsening of the global business environment, resulting from trade uncertainties and other macro factors. Considering the factors, the company anticipates adjusted earnings per share of $7.00-$7.20 for 2019.

Amid the difficult business environment, the company remains focused on managing costs and growing new business revenues from innovation, especially in the Advanced Materials segment.

Eastman Chemical Company Price and Consensus

 

Zacks Rank & Stocks to Consider

Eastman currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the basic materials space are Impala Platinum Holdings Ltd. (IMPUY - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 248.3% for the current fiscal year. The company’s shares have surged 223.1% in the past year.

Franco-Nevada has a projected earnings growth rate of 46.2% for 2019. The company’s shares have rallied 46.8% in a year.

Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 64.1% in the past year.

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