Eastman Chemical Company Drops 4% On Reducing Q3 Profit Guidance

(RTTNews) - Shares of Eastman Chemical Company (EMN) are down more than 4% Tuesday morning after cutting its third quarter earnings outlook citing lower than expected demand as well as higher cost.

For the third quarter, Eastman Chemical expects adjusted EPS to be about $2.00. Previously it was expecting solid growth from last years' adjusted EPS of $2.46.

"Demand has slowed more than expected in August and September, in particular in the consumer durables and building and construction end markets and the European and Asian regions.... Certain costs have trended higher than expected and are impacting third-quarter performance, particularly for natural gas in the U.S., which reached a 14-year high during the quarter," said Mark Costa, Board Chair and CEO.

EMN, currently at $90.74, has traded in the range of $84.95-$129.48 in the last 1 year.