Eastman Chemical Company
) has commenced the public offering of $500 million 4.65% 30-year
notes due 2044. The offering is expected to close on Mar 15, 2014,
subject to customary closing conditions.
The TN-based chemical maker plans to utilize the proceeds of the
offering for general corporate purposes, including working capital,
capital expenditures, the repayment of debt and also to implement
its strategic initiatives. The company may also utilize a part of
the proceeds for acquisition or investment in businesses, products
and technologies that correspond to its current business.
J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Wells Fargo Securities, LLC are acting as
joint book-running managers for the offering.
Last month, Eastman Chemical released its first-quarter 2014
results. The company's profit slipped in the quarter as modest
gains across its Additives and Functional Products and Fibers
divisions were offset by declines in Advanced Materials and
Specialty Fluids and Intermediates units. Higher impairment and
restructuring charges also weighed on the bottom line in the
The company logged profit (as reported) of $233 million or $1.52
per share in the quarter, a 5.7% fall from $247 million or $1.57
per share recorded a year ago.
Earnings, excluding integration charges related to Solutia
acquisition and impairment and restructuring costs, were $1.61 per
share in the reported quarter, beating the Zacks Consensus Estimate
by a penny while falling short of the year-ago adjusted earnings of
$1.62 per share.
Revenues edged down roughly 0.1% year over year to $2,305
million, missing the Zacks Consensus Estimate of $2,403 million.
The company saw tepid sales performances across the board in the
Eastman Chemical is a Zacks Rank #3 (Hold) stock.
Some better-ranked chemical stocks include
Compass Minerals International Inc.
L'Air Liquide SA
The Dow Chemical Company
). While Compass Minerals International carries a Zacks Rank #1
(Strong Buy), L'Air Liquide and Dow retain a Zacks Rank #2
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
AIR LIQUIDE-ADR (AIQUY): Get Free Report
COMPASS MINERLS (CMP): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis Report
EASTMAN CHEM CO (EMN): Free Stock Analysis
To read this article on Zacks.com click here.