Eastman Chemical Raises Prices of Methanol Methyl Acetate
Eastman Chemical Company EMN is planning to raise prices of Methanol Methyl Acetate, effective Oct 1, or as contracts permit.
In North America, the company is lifting list and off-list prices of Methyl Acetate by 4 cents per lb each. Eastman Chemical is taking appropriate pricing actions in response to escalated operating costs including rising raw material costs and freight charges.
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 first-half 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 13.9%, the industry saw a rise of 0.3%.
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 products are likely to help offset 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 Huntsman Corporation HUN, CF Industries Holdings, Inc. CF and Air Products and Chemicals, Inc. APD.
Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 4.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have rallied 51.4% in the past year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have risen 12.5% in a year’s time.
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