Sign in

    Eastman Chemical Co (EMN)

    You might also like

    Business Description

    Eastman Chemical Company is a global specialty materials company that produces a wide range of products found in everyday items . The company operates through four main segments: Advanced Materials, Additives & Functional Products, Chemical Intermediates, and Fibers, each contributing to various markets such as transportation, electronics, construction, food, agriculture, and textiles . Eastman's diverse product portfolio and strategic market engagement drive its business activities and revenue generation .

    1. Advanced Materials - Focuses on polymers, films, and plastics with differentiated performance properties for end-markets like transportation, electronics, and construction. Key product lines include advanced interlayers, performance films, and specialty plastics .
    2. Additives & Functional Products - Manufactures materials for diverse markets such as food, agriculture, transportation, and personal care. Key product lines include care additives, coatings additives, functional amines, and specialty fluids .
    3. Chemical Intermediates - Leverages large-scale and vertical integration to produce intermediates like olefin derivatives and plasticizers, primarily serving industrial chemicals, construction, and health markets .
    4. Fibers - Produces acetate tow and yarn for filtration media and textiles .

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    Mark J. CostaChief Executive Officer and Chair of the BoardJanuary 2014Mark J. Costa joined Eastman in June 2006 as Chief Marketing Officer. He became President and a member of the Board of Directors in May 2013, CEO in January 2014, and Board Chair in July 2014 .
    William T. McLain, Jr.Executive Vice President and Chief Financial OfficerFebruary 2020William T. McLain, Jr. joined Eastman in 2000. He became Corporate Controller in 2014, Vice President of Finance in 2016, and assumed his current position in February 2020. He also took on HR responsibilities in January 2023 .
    Stephen G. CrawfordExecutive Vice President, Manufacturing and Chief Sustainability OfficerOctober 2022Stephen G. Crawford joined Eastman in 1984. He served as VP of Global R&D until January 2014, became Senior VP and Chief Technology Officer in January 2014, and assumed his current role in October 2022 .
    Brad A. LichExecutive Vice President and Chief Commercial OfficerJuly 2016Brad A. Lich joined Eastman in 2001. He became Executive Vice President in January 2014 and assumed his current position in July 2016 .
    Kellye L. WalkerExecutive Vice President and Chief Legal OfficerApril 2020Kellye L. Walker joined Eastman in April 2020. She has overall leadership responsibility for Eastman's legal organization and previously served as executive vice president and chief legal officer at Huntington Ingalls Industries .
    Adrian J. HoltSenior Vice President and Chief Human Resources OfficerMay 2023Adrian J. Holt joined Eastman in 2016 as Vice President, Global Talent Acquisition. He was appointed to his current position in May 2023 .
    Christopher M. KillianSenior Vice President and Chief Technology OfficerJune 2021Christopher M. Killian joined Eastman in 1996 as a research chemist. He was appointed to his current position as Chief Technology Officer in June 2021 .
    Julie A. McAlindonSenior Vice President, Regions and Chief Supply Chain OfficerJune 2021Julie A. McAlindon joined Eastman in 2016 and was appointed to her current position in June 2021. She oversees global supply chain, sourcing, procurement, and regional leadership outside North America .
    B. Travis SmithSenior Vice President, Additives & Functional ProductsOctober 2022B. Travis Smith joined Eastman in December 1992. He became Vice President and General Manager, Performance Films in July 2012 and assumed his current position in October 2022 .
    Michelle R. StewartVice President, Chief Accounting Officer and Corporate ControllerOctober 2021Michelle R. Stewart joined Eastman in 1995. She has served in various financial roles and was appointed to her current position in October 2021 .
    Donald W. SlagerDirectorMay 27, 2024Donald W. Slager started serving as a director on May 27, 2024. The documents do not provide specific information about his committee memberships .

    Questions to Ask Management

    1. Given the mechanical and feedstock preparation issues that have limited the methanolysis plant's operating rates to around 70%, what specific measures are you implementing to achieve consistent operation at higher rates, and how will you mitigate similar challenges in your upcoming projects in France and Texas?
    2. With the Aventa business showing potential to be larger than Naia, can you elaborate on the expected timelines for significant revenue contributions and the key market adoption risks that could impede Aventa's growth?
    3. The Other segment's losses have increased from around $50 million to approximately $200 million annually due to factors like pension costs and project start-up expenses; what strategies are in place to reduce these losses moving forward, and how sustainable is this level of expenditure?
    4. In the Fibers segment, as you shift from cigarette tow to textile fibers like Naia, what constraints are you facing in accelerating this transition, and how are you addressing capacity limitations or market challenges to maximize profitability in textiles?
    5. Given the current economic environment affecting customer demand in sectors like coatings and agriculture, how are you adjusting your operational strategies to navigate expected softness in Q3 and Q4, and what are your expectations for inventory build-up in these sectors for the coming year?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateDecember 2021
    End Date/DurationN/A
    Total additional amount$2.5 billion
    Remaining authorization amount$1.515 billion
    DetailsThe program aims to return value to stockholders through dividends and share repurchases.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$4483.80% Notes3.808.8% = (448 / 5100) * 100
    2026$5581.875% Notes1.87510.9% = (558 / 5100) * 100
    2027$4457.60% Debentures + 2027 Term Loan7.608.7% = (445 / 5100) * 100
    2028$4964.5% Notes4.59.7% = (496 / 5100) * 100
    2029$4955.0% Notes5.09.7% = (495 / 5100) * 100
    2033$4965.75% Notes (Green Bond)5.759.7% = (496 / 5100) * 100
    2034$7435.625% Notes5.62514.6% = (743 / 5100) * 100
    2042$4954.8% Notes4.89.7% = (495 / 5100) * 100
    2044$8784.65% Notes4.6517.2% = (878 / 5100) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Sekisui Chemical Co., Ltd. - Competitor in the advanced interlayers product line, specifically for Saflex™ products .
    • Kuraray Co., Ltd. - Competitor in the advanced interlayers product line, specifically for Saflex™ products .
    • Kingboard (Fo Gang) Specialty Resins Limited - Competitor in the advanced interlayers product line, specifically for Saflex™ products .
    • Chang Chun Petrochemical Co., Ltd. - Competitor in the advanced interlayers product line, specifically for Saflex™ products .
    • XPEL, Inc. - Competitor in the performance films product line, specifically for LLumar™, Flexvue™, SunTek™, V-KOOL™, and Gila™ products .
    • 3M Company - Competitor in the performance films product line, specifically for LLumar™, Flexvue™, SunTek™, V-KOOL™, and Gila™ products .
    • Saint-Gobain S.A. - Competitor in the performance films product line, specifically for LLumar™, Flexvue™, SunTek™, V-KOOL™, and Gila™ products .
    • S.K. Chemical Industries - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters .
    • Sichuan Push Acetati Company Limited - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters .
    • Daicel Chemical Industries Ltd. - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters .
    • Covestro AG - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters .
    • Trinseo S.A. - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters .
    • Saudi Basic Industries Corporation - Competitor in the specialty plastics product line, specifically for Tritan™ copolyester and other copolyesters .
    • Celanese Corporation - Competitor in the fibers segment, specifically for acetate tow .
    • Cerdia International - Competitor in the fibers segment, specifically for acetate tow .
    • Daicel Corporation - Competitor in the fibers segment, specifically for acetate tow .
    • UAB Dirbtinis Pluostas - Competitor in the fibers segment, specifically for acetate yarn and fiber .
    • Lenzing AG - Competitor in the fibers segment, specifically for acetate yarn and fiber .
    • Aditya Birla Group - Competitor in the fibers segment, specifically for acetate yarn and fiber .
    • Jiangsu Ruijia Chemistry Co., Ltd. - Competitor in the acetyl chemical products line .
    • Polynt SpA - Competitor in the acetyl chemical products line .
    • Hollingsworth and Vose Company - Competitor in the nonwovens product line .
    • Lydall, Inc. - Competitor in the nonwovens product line .
    • BorgWarner Inc. - Competitor in the nonwovens product line .

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1993 PresentCurrent auditor

    Latest news

    Recent developments and announcements about EMN.

    Financial Reporting

      Earnings Report

      ·
      6 days ago

      Eastman Chemical Company (NYSE: EMN) has released its fourth-quarter and full-year 2024 financial results as of January 30, 2025.

      Key Highlights:

      • Sales Revenue:

        • Q4 2024: $2.245 billion, a 2% increase from Q4 2023 ($2.207 billion).
        • FY 2024: $9.382 billion, a 2% increase from FY 2023 ($9.210 billion).

      • Earnings Performance:

        • Adjusted EBIT for Q4 2024: $305 million, a 37% increase from Q4 2023 ($222 million).
        • Adjusted EBIT for FY 2024: $1.298 billion, an 18% increase from FY 2023 ($1.097 billion).
        • Adjusted earnings per diluted share for FY 2024: $7.89, a 23% increase from FY 2023 ($6.40).

      • Cash Flow:

        • Generated $1.3 billion in cash from operating activities in 2024, slightly down from $1.374 billion in 2023.
        • Returned $700 million to shareholders through dividends and share repurchases in 2024.

      • Segment Performance:

        • Advanced Materials: Sales revenue increased by 2% in Q4 2024 due to a 5% rise in sales volume/mix, partially offset by a 3% decline in selling prices. EBIT improved due to favorable price-cost dynamics and higher capacity utilization.
        • Additives & Functional Products: Sales revenue rose by 9% in Q4 2024, driven by a 7% increase in sales volume/mix and a 2% rise in selling prices. EBIT growth was supported by higher demand in agriculture and aviation markets.
        • Fibers: Sales revenue decreased by 7% in Q4 2024 due to lower sales volume/mix, although higher selling prices partially offset the decline. EBIT fell due to reduced sales volume/mix.
        • Chemical Intermediates: Sales revenue declined by 2% in Q4 2024, with lower sales volume/mix offset by higher selling prices. EBIT was slightly down due to lower spreads.

      • Operational Milestones:

        • Successfully operated the Kingsport methanolysis facility, positioning it for strong earnings growth in 2025.
        • Advanced its circular economy initiatives by starting the world’s largest molecular recycling facility.

      2025 Outlook:

      • Earnings Guidance:

        • Adjusted EPS is projected to range between $8.00 and $8.75.
        • Cash from operations is expected to remain at approximately $1.3 billion.

      • Growth Drivers:

        • Continued innovation-driven growth, particularly in specialty businesses.
        • Expansion of the circular platform, targeting $75 million–$100 million in EBITDA growth.

      • Challenges:

        • Anticipated headwinds include higher energy costs, a stronger U.S. dollar, and customer inventory management in the Fibers segment.

      CEO Commentary:

      Mark Costa, Board Chair and CEO, highlighted the company’s resilience in navigating macroeconomic uncertainties and its commitment to delivering strong financial results. He emphasized Eastman’s focus on leveraging its innovation-driven growth model to outperform market trends in 2025.

      For further details, Eastman will host a conference call on January 31, 2025, at 8:00 a.m. ET.