Eastman Chemical beats Q3 profit estimates on higher sales

Eastman Chemical Co

31/10/2024 21:02

Oct 31 (Reuters) - Eastman Chemical  EMN.N  beat Wall
Street estimates for third-quarter profit on Thursday, driven by
higher revenues amid a pickup in global manufacturing activity
and an end to destocking, while also tightening its full-year
earnings outlook.
    The company, however, flagged that due to normal seasonal
volume declines across key end markets, fourth-quarter earnings
before interest and taxes could be lower than those of the third
quarter. 
    "After a year in which end-market demand was muted and
showed little signs of improvement, we are projecting modest
growth from a low base across most of our end markets in 2025
compared to 2024," the company said in its prepared remarks. 
    The chemicals industry, which had previously been dealing
with high inventory that led to destocking, is now facing weaker
demand in markets like China and Europe.
    But U.S. manufacturing has held steady albeit at weaker
levels in September, and new orders improved, which, together
with falling interest rates, bode well for a rebound in activity
in the coming months, benefiting companies like Eastman. 
    Eastman, which makes a vast range of chemicals used in
manufacturing a variety of end-products in the construction,
agricultural and automotive sectors, saw sales rise 8.7% to
$2.46 billion. 
    Analysts were expecting $2.38 billion for the quarter ended
Sept. 30, according to data compiled by LSEG.
    The company saw most of its earnings come from the U.S. and
Canada, where revenues grew 6.8% to $1.03 billion in the
quarter.
    Eastman tightened its full-year profit forecast to be in the
range of $7.50 per share to $7.70 per share, from a prior
forecast of $7.40 to $7.85 each, due to higher planned
maintenance costs for their assets in the Advanced Materials
segment. 
    The Tennessee-based firm posted an adjusted profit of $2.26
per share in the July-September quarter, compared with analysts'
estimates of $2.14 per share, according to data compiled by
LSEG.

 (Reporting by Seher Dareen in Bengaluru; editing by Alan
Barona)
 ((mailto:Seher.Dareen@thomsonreuters.com; If in India call +91
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