Eastman Chemical Company
) announced that it has entered into a $10 million research
agreement with North Carolina (NC) State University to conduct
cutting-edge research in chemistry, materials science and other
scientific disciplines. According to the agreement, Eastman will
establish the Eastman Innovation Center (EIC) laboratory, located
in Centennial Campus, which is NC State's nationally recognized
As per Eastman, the deal will enable them to come up with unique
and innovative technologies and materials, which will penetrate the
market more easily and promptly than the traditional approach. On
the other hand, NC State University believes that their students
will get numerous opportunities to cater to the real-world problems
in chemistry and material sciences by working with the expertise of
The North Carolina State University has also established one
common point of contact for Eastman to coordinate activities with
both academic and administrative units. With this agreement, the
scientists of the University along with Eastman will have access to
each other's labs.
Located in the heart of Raleigh, North Carolina State University
is the largest school in North Carolina, offering bachelor degrees
in 106 disciplines, master`s degrees in 104 fields and doctorate
degrees in 61 fields.
Eastman is a global specialty chemicals company. In July 2012,
it took over Missouri-based chemical company Solutia under a cash
and stock deal worth roughly $4.8 billion (including Solutia debt).
The acquisition is expected to significantly accelerate the
company's growth while offering lucrative opportunities in
Hefty costs associated with the takeover dragged down Eastman's
profit in the second quarter of 2012. The company reported earnings
(from continuing operations) of $1.26 per share in the quarter,
down 17% from $1.51 a year ago.
Excluding costs related to the acquisition of Solutia Inc. and a
one-time gain, the Tennessee-based chemicals maker earned $1.40 a
share, which outperformed the Zacks Consensus Estimate of $1.34.
Profit (as reported) from continuing operations dropped 19% to $177
Eastman Chemical continues to expect double-digit earnings
growth in 2012 due to the acquisition of Solutia. The company
retained its adjusted earnings forecast of $5.30 a share for the
year, which is higher than the current Zacks Consensus Estimate of
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We believe that Eastman Chemical is well positioned to benefit from
the synergies of its Solutia acquisition in the second half of
2012. The company also stands to benefit from business
restructuring, cost-cutting measures and increased capacity
The company competes with
The Dow Chemical Company
E. I. du Pont de Nemours and Company
). It currently holds a short-term Zacks #3 Rank, which translates
into a short-term (1 to 3 months) Hold rating.