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Eastman Chemical (EMN) Completes Extrusion Line in Virginia

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Eastman Chemical CompanyEMN has completed a new urethane extrusion line at its plant in Martinsville, VA. The state-of-the-art extrusion line along with sourcing partnerships strengthens the company's versatility, reliability and commitment to the paint protection films and window films business.

The extrusion line will help in the production of raw materials needed to manufacture paint protection films. This move is in sync with the company's ongoing investments to support the current and future needs of dealers and channel partners in the paint protection market.

The company announced investments in multiple projects in paint protection films over a year. These include a Performance Films Patterns and Software Center of Excellence, a major capacity expansion at its Martinsville manufacturing facility and the launch of a new generation paint protection film.

Eastman Chemical's shares have moved up 35.1% over a year, outperforming the 13.7% gain of the industry it belongs to.

In 2018, Eastman Chemical expects to drive growth on the back of investments, innovation and high margin products. A modestly lower tax rate will support earnings growth in 2018.

Eastman Chemical anticipates raw material and energy prices, especially for olefins, to be volatile this year. Eastman Chemical thus remains focused on cost-cutting and productivity actions, which will likely help it to offset raw material cost inflation and other cost headwinds. The company expects to achieve $100 million of cost savings in 2018 through its cost-reduction program. Its cost-reduction actions are expected to contribute to its earnings per share in 2018. The company expects adjusted EPS growth in 2018 to be 8-12% year over year.

The company should also gain from its strategic acquisitions, especially Taminco. Further, it remains committed to reduce debt and boost shareholder returns leveraging strong free cash flows. Eastman Chemical returned more than $646 million to shareholders during 2017.

Eastman Chemical Company Price and Consensus

Eastman Chemical Company Price and Consensus | Eastman Chemical Company Quote

Zacks Rank & Other Stocks to Consider

Eastman Chemical has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the chemical space are LyondellBasell Industries N.V. LYB , BASF SE BASFY and Kronos Worldwide Inc. KRO , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

LyondellBasell has an expected long-term earnings growth rate of 9%. The company's shares have moved up 19.3% in a year.

BASF has an expected long-term earnings growth rate of 6.7%. Its shares have moved up 8.13% in a year.

Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained 49.9% over a year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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