About Eastman Chemical Company

Eastman Chemical Company is a major international producer of acetate tow for cigarette filters. From manufacturing sites in the US and six European countries (including the UK, Germany, and France) it also turns out chemicals, fibers, plastics, rubber materials, polymers, and solvents. Eastman's products include such items as food and medical packaging, films, and toothbrushes. Its end markets include transportation, building and construction, tobacco, consumer durables, food and agriculture, and health and wellbeing.The company was once part of film giant Eastman Kodak.

Operations

Eastman Chemical operates through four segments: Additives and Functional Products (AFP), Advanced Materials (AM), Fibers, and Chemical Intermediates (CI).

Additives and Functional Products generates some 35% of total sales. It manufactures for transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care markets.

Chemical Intermediates segment brings in nearly 30% of sales and supports Eastman's specialty businesses via its vertical integration into the cellulose, acetyl, olefins, and alkylamines streams.

Advanced Materials accounts for about 25% of sales and produces polymers, films, and plastics for downstream industries such as transportation, building and construction, durable goods, and health and wellness.

The Fibers segment accounts for 10% of sales and consists primarily of the acetate tow and triacetin plasticizers for use in the manufacture of cigarette filters. It also makes dyed acetate yarns for use in clothing, furniture, and industrial fabrics; and cellulose acetate flake and acetyl raw materials for other acetate fiber products.

Geographic Reach

Eastman has operations in Belgium, Estonia, France, Germany, Netherlands, the UK, and the US. Eastman has about 50 manufacturing sites and equity interests in three manufacturing joint ventures in some 15 countries that supply chemicals, plastics, and fibers products to customers throughout the world.

The US is Eastman Chemical's largest territory at around 45% of total sales. The EMEA region (Europe, Middle East, and Africa) accounts for around a quarter of sales, as does the Asia-Pacific region. Latin America generates the remaining roughly 5% of sales.

Sales and Marketing

Eastman Chemical markets and sells products in more than 100 countries through a global marketing and sales organization, which has a presence in the US and around 30 other countries.

The company's products are also marketed through indirect channels, which include distributors and contract representatives, primarily outside of the US. Products are shipped to customers directly from Eastman's manufacturing plants and from distribution centers worldwide.

Some of the markets the company serves are Adhesives, Appliances, Agriculture, Building & Construction, Childcare items, Coatings, Consumer Durable Goods, Personal Care & Cosmetics, and Electronics.

With a relatively diversified customer base, its top 100 customers account for around 55% of Eastman's total sales.

Financial Performance

Eastman earned $9.6 billion in revenues in 2017 (2016: $9 billion).  The 6% increase came from the AFP, CI, and AM segments (primarily higher sales volumes, followed by higher selling prices of chemical products), more than offsetting a decline in the Fibers segment. The decline in Fibers came from operation disruptions relating to an explosion in the Kingsport coal gasification area (estimated above $110 million in damage costs). 

Net income also climbed to $1.4 billion, from $854 million the year prior, primarily from a $100 million benefit from income tax provisions compared to $190 million expense the year before. Results further improved from the absence of a $85 million pay out in 2016 for early debt extinguishment, and almost $40 million less in asset impairment charges. 

Cash holdings went up slightly to $190 million. Operations generated $1.7 billion, offset by $1 billion in financing activities, and $640 million in investments.  

Strategy

Eastman aims to drive 1-2% revenue growth in 2016-18 through innovation and market development initiatives. It has invested in two manufacturing sites (in Germany and Malaysia) to capitalize on advances in the manufacture of Crystex insoluble sulfur.

An unfortunate glitch came in the fourth quarter of 2017, when operation were disrupted due to an explosion in the Kingsport coal gasification area that will cost the company upwards of $110 million in damages.

However, the company successfully completed the retrofit of its Nienburg, Germany manufacturing facility and continued work on the expansion of the rubber additives facility in Malaysia. Eastman also commercialized its Tertrashield performance polyester resins, providing improved performance for the automotive coatings, industrial, and food packaging markets.

Other developments include work on 60,000 tons of extra capacity in the Eatman Tritan copolyester plant in Kingsport, Tennessee, and further construction on a polyvinyl butyral resin plant in Malaysia.

Eastman is also adding emphasis to its specialty businesses and products by divesting or monetizing its excess ethelyne capacity and restructuring following the Taminco acquisition.

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Eastman Chemical Company

200 S Wilcox Dr
Kingsport, TN 37660-5147
Phone: 1 (423) 229-2000
Fax: 1 (423) 224-0323

Stats

  • Employer Type: Public
  • Stock Symbol: EMN
  • Stock Exchange: NYSE
  • Chairman and CEO: Mark J. Costa
  • SVP and CTO: Stephen G. Crawford
  • EVP and CFO: Curtis E. Espeland
  • 2017 Employees: 14,000

Major Office Locations

  • Kingsport, TN

Other Locations

  • Anniston, AL
  • Axis, AL
  • Decatur, AL
  • Foley, AL
  • Phoenix, AZ
  • Anaheim, CA
  • Canoga Park, CA
  • Huntington Beach, CA
  • Orange, CA
  • Palo Alto, CA
  • Dania, FL
  • Miami, FL
  • Sauget, IL
  • Saint Gabriel, LA
  • Springfield, MA
  • Chestertown, MD
  • Trenton, MI
  • Saint Louis, MO
  • Rochester, NY
  • Allentown, PA
  • Jefferson Hills, PA
  • Monongahela, PA
  • Gaston, SC
  • Akron, TN
  • Blountville, TN
  • Euless, TX
  • Houston, TX
  • Longview, TX
  • Texas City, TX
  • Axton, VA
  • Courtland, VA
  • Fieldale, VA
  • Martinsville, VA
  • Antwerpen, Belgium
  • Gent, Belgium
  • Merelbeke, Belgium
  • Shanghai, China
  • Bulandet, Norway
  • Moscow, Russia
  • Singapore, Singapore
  • Taipei City, Taiwan
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