Eastman Chemical sees annual profit below Street estimates amid tariff woes

Eastman Chemical Co

03/11/2025 22:48

Nov 3 (Reuters) - Eastman Chemical EMN.N forecast annual profit below analysts' estimate on Monday, signaling cautious consumer spending amid tariff-related uncertainties, sending its shares down more than 3% in extended trading.

U.S. President Donald Trump's tariffs on most imports have posed as a challenge for global chemical companies, prompting them to reassess strategies due to increasing production costs and lackluster demand.

Eastman Chemical expects its adjusted profit to be between $5.40 and $5.65 per share for 2025, compared with analysts' average estimate of $5.77 per share, according to data compiled by LSEG.

The Kingsport, Tennessee-based company also missed the estimate for third-quarter profit.

It earned $1.14 per share on an adjusted basis, while analysts expected $1.16 per share.

"In the third quarter, we realized a slowdown in orders due to normal seasonality and customers unwinding inventory that was prepositioned to avoid tariff risk in a weakening consumer environment," CEO Mark Costa said in a statement.

The company expects most of this pre-buy inventory to be depleted by the end of year.

Eastman, whose chemicals are used across the construction, agricultural and automotive sectors, said it expects operating cash flow to approach $1 billion in 2025.

 (Reporting by Dharna Bafna in Bengaluru; Editing by Shilpi Majumdar)

 ((Dharna.Bafna@thomsonreuters.com))