Eastman Chemical Rose to 3-Year Highs
Eastman Chemical (EMN), is a global advanced materials and specialty additives company that produces advanced materials, chemicals, and fibers in everyday items that people use. On September 28, 2017, Eastman Chemical rose to the highest levels since June 2016. It was one of the S&P 500’s top gainers.
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The market sentiment is supported by Eastman Chemical’s additional steps to develop cellulose fiber “Naia” introduced in early 2017. For the first time, Eastman Chemical set up the Eastman Naia Lounge at the Interfiliere NYC trade show. Naia is a new kind of textile fabric that’s manufactured from wood pulp. According to Eastman Chemical’s global director of textile fibers, Jeroen B. Jacobs, the fiber that’s made using Naia has inherent moisture management. As a result, the fiber is cool and light on the skin.
Commenting on Eastman Chemical’s progress on Naia, he said that the first six months of development focused on expanding the network for mills. Currently, management is working to collaborate with brands. Jacobs added that many brands will have collections using Naia in 2018. Management expects the textile industry to grow 3%–4% in the next few years.
On the other hand, amid an increase in the operating costs, primarily in raw materials, Eastman Chemical announced an increase in plasticizer prices. Considering the trends in raw material prices like fibers and ethylene, management is focusing on cost management and structured capital allocation.
With the improved market sentiment, Eastman Chemical rose 3% on September 28 to $89.96. The Dow Jones Basic Materials (DJUSBM) rose 0.57%.
In the next part of this series, we’ll discuss the S&P 500’s top losers on September 28.