Eastman Chemical announces $100m cost cut

17 December 2008 15:45  [Source: ICIS news]

TORONTO (ICIS news)--Eastman Chemical will reduce costs by over $100m (€72m) in 2009 as it responds to the global economic downturn, the US producer said on Wednesday.

The bulk of the reductions, some $80m, were expected to come from labour-related savings, the company said.

Eastman said it would cancel planned 2009 wage and salary increases, cut overtime wherever possible, reduce the use of contractors and part-time labour, and cut management staff, among other measures.

“Given the sudden and dramatic deterioration of the global economy, we are slowing work on some of our projects as it makes sense to do so,” said CEO Brian Ferguson.

“We continue to believe, however, that the company is well positioned to weather this current economic crisis, and that we can successfully manage costs while pursuing our plans for growth,” he said.

The reduction in management staff was already completed and would result in a $5m restructuring charge in the fourth quarter, Eastman said.

Eastman said earlier it would cut 40 non-operation department positions at its Kingsport headquarters in Tennessee by the end of the year and warned that fourth-quarter revenues and profits would be lower than expected.

($1 = €0.72)

For more on Eastman Chemical visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly