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Eastman (EMN) to Expand in Dresden for Boosting Film Business

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Eastman Chemical Company (EMN - Free Report) recently announced a capacity expansion at its production facility in Dresden, Germany to support a new coating and laminating line for film. This investment is anticipated to support the strong growth momentum of the company’s high-performance branded paint protection and window film products.

Notably, the capacity extension will strengthen Eastman Chemical’s assets in Martinsville, VA and is expected to be online by the middle of 2021, creating about 50 new job opportunities at the site.

Per Eastman Chemical, the additional capacity will enable the company to meet an ongoing ramp-up of its paint protection films in Europe and around the globe. This strategic move will also provide impetus to address the increasing customer needs for high-value automotive and architectural window.

Eastman Chemical announced a string of important investments in paint protection films, such as a Performance Films Patterns and Software Center of Excellence, multiple expansions at its production hub in Martinsville plus Core pattern and business operations software.

Shares of Eastman Chemical have dipped 1.4% in the past year compared with the industry’s decline of 22.9%.

Eastman Chemical anticipates sales volume and capacity utilization to drop in the fourth quarter due to the worsening of the global business environment, resulting from trade uncertainties and other macro factors. Considering these factors, the company anticipates adjusted earnings per share of $7.00-$7.20 for full-year 2019.

Despite a difficult business landscape, Eastman Chemical deepens its focus on managing costs and generating new business revenues from innovation, especially in the Advanced Materials segment.

Eastman Chemical Company Price and Consensus

Zacks Rank & Stocks to Consider

Eastman Chemical currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Daqo New Energy Corp. (DQ - Free Report) , Pan American Silver Corp. (PAAS - Free Report) and Sibanye Gold Limited .

Daqo New Energy has a projected earnings growth rate of 294.7% for 2020. The company’s shares have skyrocketed 107.2% in a year. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pan American Silver has an estimated earnings growth rate of 38.1% for 2020. It currently flaunts a Zacks Rank of 1. The stock has surged 47% in a year.

Sibanye Gold has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 587.5% for 2020. The stock has soared 227.6% in a year

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