Eastman Chemical Company is a United States based chemical company, engaged in the manufacture and sale of chemicals, fibers, and plastics. Eastman has 11 manufacturing sites in seven countries, supplying its products throughout the world. Founded in 1920 and based in Kingsport, Tennessee, Eastman is a Fortune 500 company with 2008 sales of $6.7 billion, and approximately 10,000 employees.
Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products, is a major supplier of cellulose acetate fibers, and produces PET polymers for packaging.
Eastman is a member of Responsible Care, a global voluntary initiative developed autonomously by the chemical industry to improve health, safety, and environmental performance. In January 2008, Corporate Responsibility Officer Magazine (CRO) named Eastman one of the five best corporate citizens among chemical companies in the U.S. Eastman was also ranked 64th in CRO magazine's list of 100 Best Corporate Citizens for 2008.
Eastman Chemical Company (Eastman), incorporated on December 31, 1993, is a chemical company, which manufactures and sells a portfolio of chemicals, plastics and fibers. As of December 31, 2010, Eastman had sixteen manufacturing sites in nine countries that supplied chemicals, plastics and fibers products to customers. The Company's products and operations are managed and reported in four operating segments: the Coatings, Adhesives, Specialty Polymers and Inks (CASPI) segment; the Fibers segment; the Performance Chemicals and Intermediates (PCI) segment, and the Specialty Plastics segment. On January 31, 2011, the Company completed the sale of the polyethylene terephthalate business, related assets at the Columbia, South Carolina site, and technology of its Performance Polymers segment to DAK Americas, LLC. On April 30, 2010, it acquired Genovique Specialties Corporation. During the year ended December 31, 2010, Eastman entered into a joint venture with Mazzucchelli 1949 SPA in Shenzhen, China.
CASPI Segment
In the CASPI segment, the Company manufactures resins, specialty polymers and solvents, which are integral to the production of paints and coatings, inks, adhesives, and other formulated products. During 2010, the CASPI segment accounted for 27% of Eastman's total revenues. Eastman's polymers product line consists of cellulose-based specialty polymers and olefin-based performance products. Eastman's cellulose-based specialty polymers enhance the aesthetic appeal and improve the performance of industrial and transportation coatings and inks. Olefin-based products are used as base polymers in hot-melt adhesives, paper laminating, sealants and pressure sensitive adhesives. They are also used as elastomer extenders in sealants and water-proofing compounds for wire and cable flooding applications. The polymers product line also includes chlorinated polyolefins, which promote the adherence of paints and coatings to plastic substrates. During 2010, polymers accounted for approximately 20% of the CASPI segment’s total revenues.
The Company’s resins product line consists of hydrocarbon resins, rosin resins and resin dispersions. These products are sold to adhesive formulators and consumer product companies for use as raw materials in hot-melt and pressure sensitive adhesives and as binders in non-woven products, such as disposable diapers, feminine products and pre-saturated wipes. Eastman offers a product portfolio of ingredients for the adhesives industry. In addition, Eastman manufactures hydrogenated gum rosins used in chewing gum applications. Eastman resins are also used in a range of applications, including plastics and rubber modification and inks. During 2010, resins accounted for approximately 35% of the CASPI segment’s total revenues.
The solvents product line includes specialty coalescents and ketones and commodity esters, glycol ethers, and alcohol solvents. Coalescents include products, such as Texanol ester alcohol and Eastman Optifilm Enhancer 300 and 400. Ketones consist of low volatile organic compound (VOC) solvents used in high solids coatings applications. Commodity solvents, which consist of esters, glycol ether and alcohol solvents are used in both paints and inks to maintain the formulation in liquid form for ease of application. During 2010, solvents accounted for approximately 45% of the CASPI segment’s total sales.
In the CASPI segment, the Company competes with BASF SE (BASF), Dow Chemical Company (Dow) and Exxon Mobil Corporation.
Fibers Segment
In the Fibers segment, Eastman manufactures and sells Estron acetate tow and Estrobond triacetin plasticizers for use in the manufacture of cigarette filters; Estron natural and Chromspun solution-dyed acetate yarns for use in apparel, home furnishings and industrial fabrics, and cellulose acetate flake and acetyl raw materials for other acetate fiber producers. The Fibers segment's manufacturing operations are primarily located at the Kingsport, Tennessee site, and also include smaller acetate tow production plants in Workington, England, and Ulsan, South Korea. During 2010, the Fibers segment represented accounted for 19% of the Company’s total revenues.
Eastman manufactures acetate tow under the Estron brand name, according to a range of customer specifications, primarily for use in the manufacture of cigarette filters. The Company manufactures acetate filament yarn under the Estron and Chromspun in a range of specifications. Estron acetate yarn is available in bright and dull luster, and is suitable for subsequent dyeing in the fabric form. Chromspun acetate yarn is solution dyed in the manufacturing process and is available in more than 100 colors. The Fibers segment's acetyl chemical products are sold primarily to other acetate fiber market producers, and include cellulose diacetate flake, acetic acid and acetic anhydride. Each is used as a raw material for the production of cellulose acetate fibers. The Fibers segment also markets acetyl-based triacetin plasticizers under the Estrobond brand name, for use by cigarette manufacturers as a bonding agent in cigarette filters.
In the Fibers segment, the Company competes with Celanese Corporation (Celanese), Daicel Chemical Industries Ltd, Mitsubishi Rayon Co., Ltd. and Rhodia S.A.
PCI Segment
The Company’s PCI segment leverages large scale and vertical integration from the acetyl and olefins streams to manufacture diversified products that are sold externally, as well as used internally for other segments of the Company. During 2010, the PCI segment accounted for 36% of the Company's total revenues. The PCI segment offers over 195 products that include intermediates based on oxo and acetyl chemistries, and performance chemicals. During 2010, the PCI segment’s revenue was approximately 65% from olefin-based chemistries, 20% from acetyl-based chemistries and 15% from other. The Company's PCI segment is the marketer of acetic anhydride in the United States, an intermediate that is a component of analgesics, laundry care products and nutritional supplements, and is the United States producer of acetaldehyde, a key intermediate in the production of agricultural and other specialty products. The PCI segment's other intermediate products include glycols and polymer intermediates. The PCI segment also manufactures performance chemicals, complex organic molecules, such as diketene derivatives, specialty ketones, and specialty anhydrides for pharmaceutical, fiber, and food and beverage ingredients, which are used in specialty market applications.
The Company competes with BASF, Celanese, Dow, and Exxon Mobil Corporation in this segment.
Specialty Plastics Segment
In the Specialty Plastics segment, the Company produces and markets specialized copolyesters and cellulosic plastics. During 2010, the Specialty Plastics segment generated approximately 18% of the Company’s net revenues. The Specialty Plastics segment consists of two primary product lines: specialty copolyesters and cellulosics. The Specialty Plastics segment's specialty copolyesters are produced in Kingsport, Tennessee; Columbia, South Carolina, and Kuantan, Malaysia. The cellulosic products are produced in Kingsport, Tennessee. During 2010, Eastman's specialty copolyesters accounted for approximately 80% of the Specialty Plastics segment's revenue. Eastman's specialty copolyesters are based on Eastman's production of cyclohexane dimethanol (CHDM) modified polymers. During 2010, Cellulosics and cellulosic plastics accounted for approximately 20% of the Specialty Plastics segment’s revenues. Eastman’s Visualize line of products is used for certain film structures in liquid crystal display (LCD) polarizers.
In the Specialty Plastics segment, the Company competes with Bayer AG, Dow, Evonvik Industries, Saudi Basic Industries Corporation and SK Chemical Industries.
OVERALL
Beta: 1.90
Market Cap (Mil.): $7,332.75
Shares Outstanding (Mil.): 71.05
Annual Dividend: 1.88
Yield (%): 1.82
FINANCIALS
EMN Industry Sector
P/E (TTM): 15.28 9.83 24.46
EPS (TTM): 93.15 -- --
ROI: 10.32 1.03 17.95
ROE: 29.65 3.06 17.96
The products manufactured by Eastman Chemical Company are categorized in five key sectors. Defined by the end use of the products, these sectors provide a basic overview of the types of products produced. Included in the description of each sector is a brief summary of the type of consumer or industrial goods that utilize the products manufactured by Eastman.[5]
Coatings, adhesives, specialty polymers and inks
Utilizing raw materials including propane, ethane, butane, high sulfur coal, natural gas, wood pulp and acetone, Eastman produces several products in this category. Products include cellulosic polymers, cellulose esters, adhesion promoters, Texanol ester alcohol, solvents, hydrocarbon resins, rosin resins, resin dispersions, and polymer raw materials. These products are used for a variety of purposes ranging from packaging to automotive paints to disposable diapers.
Fibers
Manufactured from high sulfur coal and wood pulp, Eastman makes acetate tow, acetate yarn and acetyl chemical products. These fibers are used in apparel and home furnishings as well as cigarette filters and industrial applications.
Performance chemicals and intermediates
Raw materials including propane, ethane, high sulfur coal and natural gas are utilized by Eastman to produce acetic anhydride, acetaldehyde, oxo derivatives, plasticizers, glycols, polymer intermediates, diketene derivatives, specialty ketones, and specialty anhydrides. These products are used for numerous purposes, including toys, household products, textiles and more.
Polymers
Paraxylene, ethylene glycol, purified terephthalic acid (PTA), propane, and ethane are used by Eastman to manufacture polyethylene terephthalate (PET) polymers and polyethylene products including low density polyethylene (LDPE) and linear low density polyethylene (LLDPE), as well as a clear amorphous thermoplastic in glycol-modified polyethylene terephthalate (PETG). Eastman also produces a BPA-free polymer in Tritan Copolyester. Polymers are utilized for a variety of packaging purposes, including food, cosmetics and pharmaceuticals. They are also used for industrial applications.
Specialty plastics
Utilizing some of the same raw materials as the Polymers division – paraxylene, ethylene glycol and purified terephthalic acid (PTA) – Eastman’s Specialty Plastics division manufactures copolyesters, polyester, cellulose esters, cellulosic plastics, and concentrates/additives. These products are utilized in the building and construction industry and for other purposes such as optical and photographic film.
Name Age Since Current Position
Rogers, James 60 2011 Chairman of the Board, President, Chief Executive Officer
Espeland, Curtis 46 2008 Chief Financial Officer, Senior Vice President
Costa, Mark 44 2009 Executive Vice President - Specialty Polymers, Coatings and Adhesives, Chief Marketing Officer
Lindsay, Ronald 52 2011 Executive Vice President - Performance Chemicals and Intermediates and Operations Support
Lee, Theresa 58 2011 Senior Vice President, Chief Legal and Administrative Officer
Nelson, Gregory 48 2008 Senior Vice President, Chief Technology Officer
Johnson, Richard 61 2009 Senior Vice President - Fibers and Global Supply Chain
Motte, Godefroy 52 2011 Senior Vice President, Chief Regional & Sustainability Officer
Chung, Michael 57 2011 Senior Vice President, Chief International Ventures Officer
King, Scott 42 2008 Chief Accounting Officer, Vice President, Controller
Anderson, Gary 65 2011 Lead Independent Director
Raisbeck, David 61 2000 Independent Director
Hernandez, Robert 66 2002 Independent Director
Demeritt, Stephen 67 2003 Independent Director
Hornbaker, Renee 58 2003 Independent Director
McLain, Thomas 53 2004 Independent Director
Connors, Michael 55 2005 Independent Director
Lance, Howard 55 2005 Independent Director
Kling, Lewis 66 2006 Independent Director
Alfonso, Humberto 53 2011 Independent Director
Begemann, Brett 50 2011 Independent Director
COMPANY ADDRESS
Eastman Chemical Co
200 South Wilcox Drive
Kingsport TN 37660
Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products, is a major supplier of cellulose acetate fibers, and produces PET polymers for packaging.
Eastman is a member of Responsible Care, a global voluntary initiative developed autonomously by the chemical industry to improve health, safety, and environmental performance. In January 2008, Corporate Responsibility Officer Magazine (CRO) named Eastman one of the five best corporate citizens among chemical companies in the U.S. Eastman was also ranked 64th in CRO magazine's list of 100 Best Corporate Citizens for 2008.
Eastman Chemical Company (Eastman), incorporated on December 31, 1993, is a chemical company, which manufactures and sells a portfolio of chemicals, plastics and fibers. As of December 31, 2010, Eastman had sixteen manufacturing sites in nine countries that supplied chemicals, plastics and fibers products to customers. The Company's products and operations are managed and reported in four operating segments: the Coatings, Adhesives, Specialty Polymers and Inks (CASPI) segment; the Fibers segment; the Performance Chemicals and Intermediates (PCI) segment, and the Specialty Plastics segment. On January 31, 2011, the Company completed the sale of the polyethylene terephthalate business, related assets at the Columbia, South Carolina site, and technology of its Performance Polymers segment to DAK Americas, LLC. On April 30, 2010, it acquired Genovique Specialties Corporation. During the year ended December 31, 2010, Eastman entered into a joint venture with Mazzucchelli 1949 SPA in Shenzhen, China.
CASPI Segment
In the CASPI segment, the Company manufactures resins, specialty polymers and solvents, which are integral to the production of paints and coatings, inks, adhesives, and other formulated products. During 2010, the CASPI segment accounted for 27% of Eastman's total revenues. Eastman's polymers product line consists of cellulose-based specialty polymers and olefin-based performance products. Eastman's cellulose-based specialty polymers enhance the aesthetic appeal and improve the performance of industrial and transportation coatings and inks. Olefin-based products are used as base polymers in hot-melt adhesives, paper laminating, sealants and pressure sensitive adhesives. They are also used as elastomer extenders in sealants and water-proofing compounds for wire and cable flooding applications. The polymers product line also includes chlorinated polyolefins, which promote the adherence of paints and coatings to plastic substrates. During 2010, polymers accounted for approximately 20% of the CASPI segment’s total revenues.
The Company’s resins product line consists of hydrocarbon resins, rosin resins and resin dispersions. These products are sold to adhesive formulators and consumer product companies for use as raw materials in hot-melt and pressure sensitive adhesives and as binders in non-woven products, such as disposable diapers, feminine products and pre-saturated wipes. Eastman offers a product portfolio of ingredients for the adhesives industry. In addition, Eastman manufactures hydrogenated gum rosins used in chewing gum applications. Eastman resins are also used in a range of applications, including plastics and rubber modification and inks. During 2010, resins accounted for approximately 35% of the CASPI segment’s total revenues.
The solvents product line includes specialty coalescents and ketones and commodity esters, glycol ethers, and alcohol solvents. Coalescents include products, such as Texanol ester alcohol and Eastman Optifilm Enhancer 300 and 400. Ketones consist of low volatile organic compound (VOC) solvents used in high solids coatings applications. Commodity solvents, which consist of esters, glycol ether and alcohol solvents are used in both paints and inks to maintain the formulation in liquid form for ease of application. During 2010, solvents accounted for approximately 45% of the CASPI segment’s total sales.
In the CASPI segment, the Company competes with BASF SE (BASF), Dow Chemical Company (Dow) and Exxon Mobil Corporation.
Fibers Segment
In the Fibers segment, Eastman manufactures and sells Estron acetate tow and Estrobond triacetin plasticizers for use in the manufacture of cigarette filters; Estron natural and Chromspun solution-dyed acetate yarns for use in apparel, home furnishings and industrial fabrics, and cellulose acetate flake and acetyl raw materials for other acetate fiber producers. The Fibers segment's manufacturing operations are primarily located at the Kingsport, Tennessee site, and also include smaller acetate tow production plants in Workington, England, and Ulsan, South Korea. During 2010, the Fibers segment represented accounted for 19% of the Company’s total revenues.
Eastman manufactures acetate tow under the Estron brand name, according to a range of customer specifications, primarily for use in the manufacture of cigarette filters. The Company manufactures acetate filament yarn under the Estron and Chromspun in a range of specifications. Estron acetate yarn is available in bright and dull luster, and is suitable for subsequent dyeing in the fabric form. Chromspun acetate yarn is solution dyed in the manufacturing process and is available in more than 100 colors. The Fibers segment's acetyl chemical products are sold primarily to other acetate fiber market producers, and include cellulose diacetate flake, acetic acid and acetic anhydride. Each is used as a raw material for the production of cellulose acetate fibers. The Fibers segment also markets acetyl-based triacetin plasticizers under the Estrobond brand name, for use by cigarette manufacturers as a bonding agent in cigarette filters.
In the Fibers segment, the Company competes with Celanese Corporation (Celanese), Daicel Chemical Industries Ltd, Mitsubishi Rayon Co., Ltd. and Rhodia S.A.
PCI Segment
The Company’s PCI segment leverages large scale and vertical integration from the acetyl and olefins streams to manufacture diversified products that are sold externally, as well as used internally for other segments of the Company. During 2010, the PCI segment accounted for 36% of the Company's total revenues. The PCI segment offers over 195 products that include intermediates based on oxo and acetyl chemistries, and performance chemicals. During 2010, the PCI segment’s revenue was approximately 65% from olefin-based chemistries, 20% from acetyl-based chemistries and 15% from other. The Company's PCI segment is the marketer of acetic anhydride in the United States, an intermediate that is a component of analgesics, laundry care products and nutritional supplements, and is the United States producer of acetaldehyde, a key intermediate in the production of agricultural and other specialty products. The PCI segment's other intermediate products include glycols and polymer intermediates. The PCI segment also manufactures performance chemicals, complex organic molecules, such as diketene derivatives, specialty ketones, and specialty anhydrides for pharmaceutical, fiber, and food and beverage ingredients, which are used in specialty market applications.
The Company competes with BASF, Celanese, Dow, and Exxon Mobil Corporation in this segment.
Specialty Plastics Segment
In the Specialty Plastics segment, the Company produces and markets specialized copolyesters and cellulosic plastics. During 2010, the Specialty Plastics segment generated approximately 18% of the Company’s net revenues. The Specialty Plastics segment consists of two primary product lines: specialty copolyesters and cellulosics. The Specialty Plastics segment's specialty copolyesters are produced in Kingsport, Tennessee; Columbia, South Carolina, and Kuantan, Malaysia. The cellulosic products are produced in Kingsport, Tennessee. During 2010, Eastman's specialty copolyesters accounted for approximately 80% of the Specialty Plastics segment's revenue. Eastman's specialty copolyesters are based on Eastman's production of cyclohexane dimethanol (CHDM) modified polymers. During 2010, Cellulosics and cellulosic plastics accounted for approximately 20% of the Specialty Plastics segment’s revenues. Eastman’s Visualize line of products is used for certain film structures in liquid crystal display (LCD) polarizers.
In the Specialty Plastics segment, the Company competes with Bayer AG, Dow, Evonvik Industries, Saudi Basic Industries Corporation and SK Chemical Industries.
OVERALL
Beta: 1.90
Market Cap (Mil.): $7,332.75
Shares Outstanding (Mil.): 71.05
Annual Dividend: 1.88
Yield (%): 1.82
FINANCIALS
EMN Industry Sector
P/E (TTM): 15.28 9.83 24.46
EPS (TTM): 93.15 -- --
ROI: 10.32 1.03 17.95
ROE: 29.65 3.06 17.96
The products manufactured by Eastman Chemical Company are categorized in five key sectors. Defined by the end use of the products, these sectors provide a basic overview of the types of products produced. Included in the description of each sector is a brief summary of the type of consumer or industrial goods that utilize the products manufactured by Eastman.[5]
Coatings, adhesives, specialty polymers and inks
Utilizing raw materials including propane, ethane, butane, high sulfur coal, natural gas, wood pulp and acetone, Eastman produces several products in this category. Products include cellulosic polymers, cellulose esters, adhesion promoters, Texanol ester alcohol, solvents, hydrocarbon resins, rosin resins, resin dispersions, and polymer raw materials. These products are used for a variety of purposes ranging from packaging to automotive paints to disposable diapers.
Fibers
Manufactured from high sulfur coal and wood pulp, Eastman makes acetate tow, acetate yarn and acetyl chemical products. These fibers are used in apparel and home furnishings as well as cigarette filters and industrial applications.
Performance chemicals and intermediates
Raw materials including propane, ethane, high sulfur coal and natural gas are utilized by Eastman to produce acetic anhydride, acetaldehyde, oxo derivatives, plasticizers, glycols, polymer intermediates, diketene derivatives, specialty ketones, and specialty anhydrides. These products are used for numerous purposes, including toys, household products, textiles and more.
Polymers
Paraxylene, ethylene glycol, purified terephthalic acid (PTA), propane, and ethane are used by Eastman to manufacture polyethylene terephthalate (PET) polymers and polyethylene products including low density polyethylene (LDPE) and linear low density polyethylene (LLDPE), as well as a clear amorphous thermoplastic in glycol-modified polyethylene terephthalate (PETG). Eastman also produces a BPA-free polymer in Tritan Copolyester. Polymers are utilized for a variety of packaging purposes, including food, cosmetics and pharmaceuticals. They are also used for industrial applications.
Specialty plastics
Utilizing some of the same raw materials as the Polymers division – paraxylene, ethylene glycol and purified terephthalic acid (PTA) – Eastman’s Specialty Plastics division manufactures copolyesters, polyester, cellulose esters, cellulosic plastics, and concentrates/additives. These products are utilized in the building and construction industry and for other purposes such as optical and photographic film.
Name Age Since Current Position
Rogers, James 60 2011 Chairman of the Board, President, Chief Executive Officer
Espeland, Curtis 46 2008 Chief Financial Officer, Senior Vice President
Costa, Mark 44 2009 Executive Vice President - Specialty Polymers, Coatings and Adhesives, Chief Marketing Officer
Lindsay, Ronald 52 2011 Executive Vice President - Performance Chemicals and Intermediates and Operations Support
Lee, Theresa 58 2011 Senior Vice President, Chief Legal and Administrative Officer
Nelson, Gregory 48 2008 Senior Vice President, Chief Technology Officer
Johnson, Richard 61 2009 Senior Vice President - Fibers and Global Supply Chain
Motte, Godefroy 52 2011 Senior Vice President, Chief Regional & Sustainability Officer
Chung, Michael 57 2011 Senior Vice President, Chief International Ventures Officer
King, Scott 42 2008 Chief Accounting Officer, Vice President, Controller
Anderson, Gary 65 2011 Lead Independent Director
Raisbeck, David 61 2000 Independent Director
Hernandez, Robert 66 2002 Independent Director
Demeritt, Stephen 67 2003 Independent Director
Hornbaker, Renee 58 2003 Independent Director
McLain, Thomas 53 2004 Independent Director
Connors, Michael 55 2005 Independent Director
Lance, Howard 55 2005 Independent Director
Kling, Lewis 66 2006 Independent Director
Alfonso, Humberto 53 2011 Independent Director
Begemann, Brett 50 2011 Independent Director
COMPANY ADDRESS
Eastman Chemical Co
200 South Wilcox Drive
Kingsport TN 37660