U.S. Markets open in 6 hrs 37 mins

Eastman Chemical Makes Offering of $500M Notes

Zacks Equity Research

Eastman Chemical Company (EMN) has commenced the public offering of $500 million 4.65% 30-year notes due 2044. The offering is expected to close on Mar 15, 2014, subject to customary closing conditions.

The TN-based chemical maker plans to utilize the proceeds of the offering for general corporate purposes, including working capital, capital expenditures, the repayment of debt and also to implement its strategic initiatives. The company may also utilize a part of the proceeds for acquisition or investment in businesses, products and technologies that correspond to its current business.

J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering.  

Last month, Eastman Chemical released its first-quarter 2014 results. The company’s profit slipped in the quarter as modest gains across its Additives and Functional Products and Fibers divisions were offset by declines in Advanced Materials and Specialty Fluids and Intermediates units. Higher impairment and restructuring charges also weighed on the bottom line in the reported quarter.

The company logged profit (as reported) of $233 million or $1.52 per share in the quarter, a 5.7% fall from $247 million or $1.57 per share recorded a year ago.

Earnings, excluding integration charges related to Solutia acquisition and impairment and restructuring costs, were $1.61 per share in the reported quarter, beating the Zacks Consensus Estimate by a penny while falling short of the year-ago adjusted earnings of $1.62 per share.

Revenues edged down roughly 0.1% year over year to $2,305 million, missing the Zacks Consensus Estimate of $2,403 million. The company saw tepid sales performances across the board in the quarter.  

Eastman Chemical is a Zacks Rank #3 (Hold) stock.

Some better-ranked chemical stocks include Compass Minerals International Inc. (CMP), L'Air Liquide SA (AIQUY) and The Dow Chemical Company (DOW). While Compass Minerals International carries a Zacks Rank #1 (Strong Buy), L'Air Liquide and Dow retain a Zacks Rank #2 (Buy).

Read the Full Research Report on EMN
Read the Full Research Report on DOW
Read the Full Research Report on AIQUY
Read the Full Research Report on CMP

Zacks Investment Research