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Eastman Chemical posts Q4 profit beat as destocking ends in key markets
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Eastman Chemical posts Q4 profit beat as destocking ends in key markets
Jan 30, 2025 3:44 PM

Jan 30 (Reuters) - Eastman Chemical ( EMN ) beat fourth-quarter profit estimates on

Thursday, as the company benefited from a decline in destocking trends across key markets.

The company makes a vast range of chemicals used in manufacturing a variety of end-products

in the construction, agricultural and automotive sectors.

Sales in its Additives and Functional Products unit rose 9%, while its Advanced Materials

unit saw revenue jump 2% in the quarter, primarily helped by the end of destocking - the process

of emptying out excess inventory levels following low demand.

Chemical companies struggled with destocking efforts in recent quarters, aiming to reduce

excess inventory accumulated during the pandemic-era slowdown in demand.

This trend is easing as companies see demand picking up in key markets such as Europe and

China.

However, CEO Mark Costa cautioned that the global economic and geopolitical environment

"remains highly uncertain" at the start of the year and the company expects "modest volume

growth" in its specialty businesses.

The company expects 2025 full-year profit to be between $8.00 to $8.75 per share.

Its adjusted net income was $1.87 per share for the three months ended Dec. 31, compared

with analysts' average expectation of $1.57 per share, according to data compiled by LSEG.

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