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Eastman Chemical (EMN) Raises Prices of Plasticizers

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Eastman Chemical Company (EMN - Free Report) is raising the prices of Plasticizers, effective Sep 15 or as contracts permit. This latest move is due to increased operating costs, especially of raw materials.

In North and Latin America, the company is lifting list and off-list prices of Non-Phthalate and VersaMax Plus Plasticizer as well as DOP, TOTM, and TEG-EH Plasticizer by 3 cents per lb each.

During second-quarter earnings call, Eastman Chemical stated that strong volume gains in the specialty businesses and disciplined cost management have helped the company to achieve strong earnings growth in the first half of 2018. The company continues to expect adjusted earnings per share year-over-year growth for 2018 of 10-14%.

In a year’s time, shares of Eastman Chemical have outperformed the industry it belongs to. While the stock has gained around 15.2%, the industry saw a rise of 6.1%.

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 its products are likely to help it offset the impact of these headwinds.

Eastman Chemical Company Price and Consensus

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 - Free Report) , Celanese Corporation (CE - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company has gained 19% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Celanese has an expected long-term earnings growth rate of 10% and carries a Zacks Rank #1. The stock has rallied 17.8% in a year.

Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Shares of the company have increased 12.6% in a year’s time.

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