EMN - Eastman Chemical's stock slips as CFO describes weak demand

2023-06-08 13:05:27 ET

Eastman Chemical’s ( NYSE: EMN ) stock fell as much as 4.5% on Thursday to touch a one-week low after the company’s finance chief said demand is weak globally.

“China: still waiting to see a recovery, definitely in the manufacturing space, also in the auto space,” William McLain, CFO of Eastman, said at a Deutsche Bank conference. European markets are stable, but at a weak base level, he said.

In the Americas, destocking of inventories is coming to an end, except in the building and construction market. The company hasn’t seen a typical rise in seasonal demand during the second quarter, when building activity typically picks up.

“Building and construction, we continue to expect that to be a theme and a weakness into the second half of the year,” he said.

The automotive industry is one bright spot for Eastman ( EMN ) with its advanced interlayers business that makes materials for head-up displays in cars, McLain said.

Eastman ( EMN ) was one of the biggest decliners among companies in the Standard & Poor’s 500 stock index ( SP500 ), which edged upward after a report on joblessness led investors to ponder whether the Federal Reserve would delay more rate hikes.

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