Eastman Chemical Company


SKU: EMN-1 Category:


Eastman Chemical delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed earnings beat. The primary contributor to the decline in earnings this year was attributed to volume and mix, resulting in a variable margin decrease of approximately $450 million. Looking ahead, Eastman envisions recovery in three main areas. Firstly, the absence of destocking, estimated to account for about 40% of the volume decline, is expected to return about $150 million in variable margin next year. Secondly, their team places great emphasis on innovation, especially with the Kingsport methanolysis plant anticipated to add $75 million in EBITDA, along with other innovative products across the portfolio, such as premium interlayers and Aventa products, contributing to growth even in a stable market. Eastman’s management is cautiously optimistic about market stability, particularly in non-discretionary sectors like pharma and medical, anticipating some modest growth. Automotive growth is also expected, while the building construction sector may remain flat or decrease slightly. Strategic management of asset utilization, flat cost structures, and effective control of Specialty pricing and raw material inventory position Eastman to capitalize on these factors, leading to a considerable improvement in earnings and cash flow.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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