Jan 30 (Reuters) - Eastman Chemical EMN.N beat fourth-quarter profit estimates on Thursday, as the company benefited from a decline in destocking trends across key markets.
The company makes a vast range of chemicals used in manufacturing a variety of end-products in the construction, agricultural and automotive sectors.
Sales in its Additives and Functional Products unit rose 9%, while its Advanced Materials unit saw revenue jump 2% in the quarter, primarily helped by the end of destocking — the process of emptying out excess inventory levels following low demand.
Chemical companies struggled with destocking efforts in recent quarters, aiming to reduce excess inventory accumulated during the pandemic-era slowdown in demand.
This trend is easing as companies see demand picking up in key markets such as Europe and China.
However, CEO Mark Costa cautioned that the global economic and geopolitical environment "remains highly uncertain" at the start of the year and the company expects "modest volume growth" in its specialty businesses.
The company expects 2025 full-year profit to be between $8.00 to $8.75 per share.
Its adjusted net income was $1.87 per share for the three months ended Dec. 31, compared with analysts' average expectation of $1.57 per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Alan Barona)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.