Eastman Chemical (EMN) Set to Hike Prices of Plasticizers
Eastman Chemical Company EMN is raising the prices of plasticizers effective Oct 1, or as contracts permit. Increased operating costs, especially of raw materials, have led to the hike.
In North and Latin America, the company is lifting list and off-list prices of Benzoflex 50 by 3 cents per lb. Moreover, the company is raising list and off-list prices of Benzoflex 9-88, Benzoflex 9-88 SG as well as Benzoflex TPU-405 by 5 cents per lb each.
During the second-quarter earnings call, Eastman Chemical stated that strong volume gains in the specialty businesses and disciplined cost management have helped the company achieve strong earnings growth in the first half of 2018. The company continues to expect year-over-year growth of 10-14% in adjusted earnings per share for 2018.
In a year’s time, shares of Eastman Chemical have outperformed the industry it belongs to. While the stock has gained around 12.6%, the industry saw 0.7% decline.
The company is focused on productivity and cost-cutting actions, which are helping it offset raw material cost inflation and other cost headwinds. In 2018, Eastman Chemical expects to deliver $100 million of cost savings under its cost-reduction program.
Eastman Chemical is seeing a rise in raw materials costs and the same is expected to persist in the second half of 2018. It is exposed to volatility in ethylene prices as well. Nevertheless, the company’s productivity measures and actions to raise selling prices of its products are likely to help it offset the impact of these headwinds.
Eastman Chemical Company Price and Consensus
Eastman Chemical Company Price and Consensus | Eastman Chemical Company Quote
Zacks Rank & Stocks to Consider
Eastman Chemical is a Zacks Rank #3 (Hold) stock.
Some better-ranked companies in the basic materials space are Ingevity Corporation NGVT, Celanese Corporation CE and Air Products and Chemicals, Inc. APD.
Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1 (Strong Buy). The company has gained 73.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and carries a Zacks Rank #1. The stock has gained 11.4% in a year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2 (Buy). Shares of the company have risen 11.7% in a year’s time.
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