US Eastman forecasts 20%/year profit growth through 2012

17 November 2009 17:05  [Source: ICIS news]

TORONTO (ICIS news)--Eastman Chemical expects annual profit growth of 20% through 2012 as the economy comes out of the recession, chief executive Jim Rogers said on Tuesday.

“Eastman is leveraged to the economy, when the volumes come back, utilisation rates are going to go up”, Rogers said during an investor presentation.

Earnings per share in Eastman’s core businesses would reach $6.00 by around 2012, up from the $3.50 it expects to achieve for 2009, Rogers said.

Further growth upside would come from the operating cash flows generated by Eastman’s core activities, he said.

“We got to be really savvy, we got to be disciplined in how we spend that cash” as the company invests in organic growth initiatives, joint ventures and acquisitions, Rogers said.

Eastman executive vice president Mark Costa said the company’s investments will include an additional 30,000 tonne/year expansion of its Tritan copolyester capacity by 2011/2012.

Tritan, a product used in making products such as housewares, appliances and extruded-sheets, is free of bisphenol-A (BPA), he stressed.

Also, Eastman was targeting the high-growth $2bn (€1.34bn) materials market for photoresist stripping, a new market for the company, Costa said.

Eastman’s coatings and adhesives business had “very unique capabilities” in that segment, he said.

The company was working with several customers on this opportunity, he said, but he declined to disclose details because of secrecy agreements.

($1 = €0.67)

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By: Stefan Baumgarten
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