Eastman Chemical Company EMN recently stated that it will make investments to expand production capabilities of Eastman Impera performance resins for tires at its Jefferson, PA, and Middelburg, The Netherlands manufacturing sites.
The expansion will serve the growing demand from tire makers globally for Impera resins, which enable improved efficiency, safety and performance. The move supports growth strategy in the company’s Tire Additives business, which is part of its Additives & Functional Products operating segment.
Per management, OEMs and consumers are raising expectations for higher performing tires. Impera performance resins is a preferred technology that enable improvements in tire performance, fuel economy and tread life. As such, the investments will enable the company to support the growing needs of leading tire makers. It will also help to expand Eastman Chemical’s position as a key innovator in the tire industry.
The company’s shares have lost 34.3% in the past year compared with 21.2% decline of the industry.
Eastman Chemical expects strong earnings growth in the second quarter on a sequential comparison basis. However, the company expects the difficult global business environment to persist through first-half 2019.
It is undertaking additional cost reduction initiatives in the wake of a challenging business environment. The company expects global economy to strengthen in the second half of 2019. The company continues to expect adjusted EPS growth of 6-10% in 2019.
Zacks Rank & Key Picks
Eastman Chemical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 12.5% in the past year.
Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 84.9% in a year’s time.
AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 70.1% in the past year.
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