Eastman Chemical (EMN) To Bump Up Prices Of Amines Products
Zacks Investment Research | Jan 04, 2019 06:11AM ET
Eastman Chemical Company (NYSE:EMN) has announced that it will raise prices of the Amines products effective Feb 1, 2019 or as contracts permit.
The company will increase the global prices of all Synergex products, Dibutylaminoethanol (DBAE), Dimethylamino-2 Propanol (DMA2P-77 and Anhydrous), Ethylaminoethanol (EAE), Isopropylaminoethanol (IPAE), N-Butylaminoethanol (BAE)N-Butyldiethanolamine (BDEA) and T-Butylaminoethanol (TBAE) products by 8 cents per lb and $176/MT.
Moreover, in North and Latin America, the company will raise prices of Amietol M11, Amietol M12 and Amietol M21 by 5 cents per lb and $110/MT.
Eastman Chemical is taking actions to raise selling prices of products in the wake of raw material price inflation. Higher selling prices of most product lines contributed to revenue growth at the company’s Additives & Functional Products and Chemical Intermediates segments during the third quarter of 2018.
In a year’s time, shares of Eastman Chemical have outperformed the industry it belongs to. The stock has lost around 26.4% compared with the industry’s fall of 30.9%.
On third-quarter 2018 earnings call, Eastman Chemical noted that strong volume gains in the specialty businesses, disciplined cost management and a lower effective tax rate helped it achieve a year-over-year adjusted earnings per share growth rate of 13% during the first nine months of 2018. The company consistently expects a year-over-year adjusted earnings per share rise of 10-14%.
The company is focused on productivity and cost-cutting actions, aiding it to offset raw material cost inflation and other cost headwinds. Eastman Chemical anticipates to deliver $100 million savings under its cost-reduction program.
Eastman Chemical has been seeing a rise in raw materials costs, mostly in its chemical intermediates business as witnessed in the third quarter. Raw materials cost woe is anticipated to persist. Nevertheless, the company’s productivity and price-hike actions are likely to enable it to offset the input cost pressure.
Eastman Chemical Company Price and Consensus
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