Eastman Chemical Company (EMN - Free Report) announced that it is expanding its collaboration with the IMCD Group for the distribution of its specialty plastics.
Currently, IMCD distributes specialty plastics of Eastman Chemical in Portugal and Spain. Under the expanded deal, effective Aug 1, 2020, IMCD will carry out the distribution of specialty plastics in expanded markets in Europe, Middle East and Africa (EMEA). Notably, IMCD will distribute thermoplastic polyester materials over a broad range of markets and applications such as medical, cosmetics, consumer durables, personal care, packaging and more.
Eastman Chemical’s proven portfolio of specialty polymers and compounds along with its advanced recycling technologies helps tackle the technical, regulatory and increasing sustainability problems confronted by many industries.
Per management, the company expects the partnership to ensure a seamless transition for its specialty plastics customers, whose distribution arrangements with incumbent distribution partners complete in late July.
Eastman Chemical’s shares have lost 12.9% over a year compared with the 18.8% decline of the industry it belongs to.
On its first-quarter 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. It noted that it is significantly increasing cost-reduction targets, which is forecast to be $150 million of net savings.
It also took steps to boost its cash flow. 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 stocks in the basic materials space are AngloGold Ashanti Limited (AU - Free Report) , Agnico Eagle Mines Limited (AEM - 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 71% 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.
Agnico Eagle has a projected earnings growth rate of 53.6% for the current year. The stock has gained around 24% in a year. It currently has a Zacks Rank of 2.
Harmony Gold has an expected earnings growth rate of 28.6% for 2020. The company’s shares have gained 87.2% in the past year. It is presently a Zacks #2 Ranked player.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>