Eastman Chemical Gets Approval for Using Eastman Turbo Oils

Eastman Chemical Company EMN has received an approval from engine maker Pratt & Whitney for the use of two engine oils – Eastman Turbo Oil 2197 and 2380 – in the PW1100G-JM and PW1500G engines. Eastman Turbo Oils enable innovation, safety and efficiency within the engine market and aviation industry.

Eastman Turbo Oil 2197, the most widely used, high-performance fleet oil in the world, is designed to exceed the demand of current and future jet engines. The lubricant, qualified to the MIL-PRF-23699 HTS Class and SAE AS5780 HPC Class, has recorded operations of well over 370 million hours in the past two decades.

Meanwhile, Eastman Turbo Oil 2380 – a standard performance lubricating oil – has recorded more than a billion hours of operation. It is one of the most widely used turbine oils in the commercial aviation industry.

Eastman Chemical recorded lower profits in the third quarter of 2016 as its sales dropped. The company recorded profit of $232 million or $1.56 per share, reflecting a 9% decline from $256 million or $1.71 per share recorded a year ago. Excluding one-time items, earnings were $1.86 per share for the quarter, up from $1.84 per share in the year-ago quarter, topping the Zacks Consensus Estimate of $1.67.

Eastman Chemical has outperformed the Zacks categorized Chemicals-Diversified industry over the past three months, gaining from its cost-reduction initiatives and strong growth of its high-value products. The company’s shares have gained around 22.7% over the same time frame, compared with a 11.4% gain recorded by the industry.

In Sep 2014, Eastman Chemical completed the expansion of the overall capacity of Eastman Chemical 168 non-phthalate plasticizer by roughly 15%. With the capacity expansion, the company will be able to meet growing needs of non-phthalate plasticizers worldwide. The company remains focused on its cost-cutting and productivity initiatives, and is expected to deliver at least $100 million of cost savings in the full year. Eastman Chemical also remains committed to reduce debt and boost shareholder returns. Further, the company is likely to gain from its strategic acquisitions and capacity expansion actions.

However, Eastman Chemical continues to see pricing pressure across its business segments, especially in the Chemical Intermediates unit as witnessed in the last reported quarter. Challenging global economic conditions, along with currency translation risks, continue to impact some of the company’s businesses.

Eastman Chemical Company Price and Consensus

Eastman Chemical Company Price and Consensus | Eastman Chemical Company Quote

Zacks Rank & Key Picks

Eastman Chemical currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the chemical space include The Chemours Company CC, Kronos Worldwide, Inc. KRO and BASF SE BASFY all sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected long-term growth rate of 15.50%.

Kronos Worldwide has an expected long-term growth rate of 5%.

BASF has an expected  long-term growth rate of 7.7%.

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