Eastman Chemical beats quarterly profit estimates on higher sales

Eastman Chemical Co

25/07/2024 22:30

July 25 (Reuters) - Eastman Chemical  EMN.N  beat Wall
Street estimates for second-quarter profit on Thursday, as the
diversified chemicals company benefited from higher sales
volumes.
    Shares of the company were up 2.3% in extended trading.
    "Through this year, we are benefiting from the end of
destocking, as our volumes have reconnected to underlying
demand," said CEO Mark Costa.    
    Chemical companies have been struggling with destocking as
they attempted to clear out excess inventory after the COVID-19
pandemic dampened demand. 
    However, this trend is slowly coming to an end as companies
are seeing demand levels pick up across key markets such as
Europe and China.
    The chemicals company reported a rise in second-quarter
sales, which came in at $2.36 billion, compared to $2.32 billion
last year.
    Eastman also tightened its annual profit forecast to be in
the range of $7.40 per share to $7.85 per share, from a prior
forecast of $7.25 per share to $8.00 per share.
    This compares to average analysts' estimates of $7.67 per
share, according to LSEG data.
    The Tennessee-based firm posted an adjusted profit of $2.15
per share in the April-June quarter, compared with analysts'
estimates of $2.01 per share.

 (Reporting by Vallari Srivastava in Bengaluru; Editing by Alan
Barona)
 ((Srivastava.Vallari@thomsonreuters.com;))