DOW JONES NEWSWIRES
Eastman Chemical Co. (EMN) will cut 200 to 300 jobs, or up to 3%
of its work force, as it looks to cut costs by another $100
million.
The chemical company projected 2009 earnings of $2 to $3 a
share. Analysts polled by Thomson Reuters, on average, expected
$2.31.
Eastman lowered its full-year capital-spending budget by $50
million to $300 million and $350 million and said it would reduce
pay for U.S. employees by 5% starting March 30.
The job and cost cuts come on top of another $100 million of
savings the company said it was aiming for this year back in
December.
"The severity of the current economic environment led to the
actions we are announcing today," Chief Executive Brian Ferguson
said. "Despite our expectations that sales volume will continue to
be at depressed levels, we remain committed to taking the necessary
actions to deliver solid operating cash flow in 2009 that will more
than support both our dividend and capital expenditures."
The job cuts will take place in the next four to six weeks, and
the company expects a $30 million restructuring charge in the
current quarter.
Eastman has been struggling for more than a year as margins
began to fall amid rising raw material costs. Tough competition in
the markets for basic chemicals keep margins low in that
segment.
Eastman's shares closed Friday at $18.26 and haven't traded
premarket. The stock is off 42% so far this year.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com