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Eastman Chemical (EMN) Launches Tritan Renew Copolyester

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Eastman Chemical Company (EMN - Free Report) has launched the Tritan Renew copolyester. Tritan Renew offers uncompromising sustainability, ensuring the same durability, performance and safety of original Tritan.

Notably, Tritan Renew comes with up to 50% recycled content derived from waste plastic. The company will make it, using its Advanced Circular Recycling technologies. The technologies use recycled plastic as raw material, reducing fossil fuel consumption and with minimal greenhouse gas emissions.

Per management, Tritan Renew is an important step as it is the first product to market using molecular recycling made possible by the company’s Advanced Circular Recycling technologies. Moreover, Eastman Chemical has made significant progress over the past year to create sustainable solutions that convert millions of pounds of waste into new materials.

Notably, the company produces Tritan Renew with certified recycled content for a wide range of durable products such as reusable sports bottles, small appliances, food-storage containers and eyewear as well as textiles and cosmetics packaging.

Eastman Chemical is committed to innovations, which are useful for building a circular economy.

Notably, products made with Advanced Circular Recycling technologies — carbon renewal technology and polyester renewal technology — have a significantly lower carbon footprint compared to the production processes of products made with fossil fuel-based raw materials.

Eastman Chemical’s shares have lost 9.2% over a year, outperforming the 14.9% decline of the industry it belongs to.

 

On its first-earnings call, the company stated that it withdrew its earnings and cash flow guidance for 2020 due to a higher level of uncertainties related to the impact of the coronavirus outbreak. The company noted that it is significantly increasing cost-reduction targets, which is forecast to be roughly $150 million of net savings.

It also took steps to boost its cash flows. These include the reduction of capital expenditure by around $100 million to $325-375 million. Eastman Chemical also expects to reduce debt by more than $400 million.

Eastman Chemical Company Price and Consensus

 

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic materials space are AngloGold Ashanti Limited (AU - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

AngloGold has a projected earnings growth rate of 109.9% for the current year. The company’s shares have surged around 68% in a year. It currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Barrick has a projected earnings growth rate of 54.9% for the current year. The company’s shares have rallied around 60% in a year. It currently has a Zacks Rank #2.

Harmony Gold has an expected earnings growth rate of 28.6% for 2020. The company’s shares have gained 63.9% in the past year. It presently carries a Zacks Rank #2.

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