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Shares of Eastman Chemical Co. slumped 3.0% in premarket trading Tuesday, after the specialty chemicals company cut its third-quarter earnings outlook, citing a slowdown in demand and challenging logistics. The company now expects adjusted earnings per share for the quarter through September of approximately $2.00, compared with previous guidance of “solid growth” relative to year-ago adjusted EPS of $2.46; the FactSet consensus was for EPS $2.60. “While demand across some end markets, including agriculture and personal care, is demonstrating resilience, demand has slowed more than expected in August and September, in particular in the consumer durables and building and construction end markets and the European and Asian regions,” said Chief Executive Mark Costa. “At the same time, logistics have been challenged by an acceleration of marine logistics issues on the U.S. East Coast, particularly impacting high-value specialty products in Advanced Materials bound for other regions.” The company said it was responding to “accelerating challenges” by raising prices to offset higher costs. The stock has tumbled 21.5% year to date through Monday, while the S&P 500 has lost 13.8%.
-Tomi Kilgore
(END) Dow Jones Newswires
09-13-22 0740ET
Copyright (c) 2022 Dow Jones & Company, Inc.
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