Eastman Chemical (EMN) to Increase Prices of Platicizers

Eastman Chemical CompanyEMN is set to increase the selling prices of certain products. The price hike will be effective from Oct 1 or as contracts permit. The price hike is due to elevated operating costs, especially in raw materials.

List and offlist prices of Eastman 168 Non-Phthalate Plasticizer, VersaMax Plus Plasticizer, DOA Plasticizer, DOM Plasticizer, DOP Plasticizer, TOTM Plasticizer and TEG-EH Plasticizer will increase by 3 cents per lb in both North and Latin America.

Eastman Chemical expects to drive growth on the back of innovation and high-margin products amid an uncertain global business environment. Eastman Chemical believes that disciplined capital allocation and aggressive cost-management policies might contribute to earnings and offset challenges faced by the company in Fibers and ethylene pricing.

Eastman Chemical, which is among the prominent chemical makers along with BASF S.A. BASFY , Celanese Corporation CE and Air Products and Chemicals, Inc. APD , witnessed strong first-half 2017 results. The company expects adjusted earnings per share for 2017 to grow 10-12% year over year, up from its earlier view of 8-12%.

Eastman Chemical remains focused on cost-cutting and productivity actions. The company aims to achieve $100 million of cost savings in 2017. The company remains committed to reduce debt and boost shareholder returns.

However, Eastman Chemical continues to witness pricing pressure in some businesses. Lower prices of acetate tow are hurting its Fibers unit. Moreover, the company expects ethylene prices to be lower in second-half 2017 vis-à-vis the first half. As such, ethylene margins are expected to be under pressure in the second half. The company is also exposed to a volatile raw material pricing environment.

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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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