Eastman Chemical sees annual profit below Street estimates amid tariff woes
Nov 3 (Reuters) - Eastman Chemical EMN.N forecast annual profit below analysts' estimate on Monday, signaling cautious consumer spending amid tariff-related uncertainties, sending its shares down more than 3% in extended trading.
U.S. President Donald Trump's tariffs on most imports have posed as a challenge for global chemical companies, prompting them to reassess strategies due to increasing production costs and lackluster demand.
Eastman Chemical expects its adjusted profit to be between $5.40 and $5.65 per share for 2025, compared with analysts' average estimate of $5.77 per share, according to data compiled by LSEG.
The Kingsport, Tennessee-based company also missed the estimate for third-quarter profit.
It earned $1.14 per share on an adjusted basis, while analysts expected $1.16 per share.
"In the third quarter, we realized a slowdown in orders due to normal seasonality and customers unwinding inventory that was prepositioned to avoid tariff risk in a weakening consumer environment," CEO Mark Costa said in a statement.
The company expects most of this pre-buy inventory to be depleted by the end of year.
Eastman, whose chemicals are used across the construction, agricultural and automotive sectors, said it expects operating cash flow to approach $1 billion in 2025.
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