Business Analysis of Eastman

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Eastman

Business Overview

Eastman Chemical Company manufactures and sells materials, specialty additives, chemicals, and fibers in the United States and internationally. The company's Additives & Functional Products segment offers specialty coalescents, specialty and commodity solvents, paint additives, and specialty polymers; hydrocarbon and rosin resins; sulfur and antidegradant rubber additives; performance resins and amine-derivative-based building blocks; heat transfer and aviation fluids; formic-acid based solutions; and metam based soil fumigants, thiram and ziram based fungicides, and plant growth regulators. Its products are used in coatings, tires, consumables, building and construction, animal nutrition, care chemical, crop protection, and energy markets. Its Advanced Materials segment provides copolyesters, cellulose esters, polyvinyl butyral (PVB) sheets, specialty (PVB) intermediates, and window film and protective film products for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The company's Chemical Intermediates segment offers Olefin derivatives, acetyls, ethylene, and commodity solvents; primary non-phthalate and phthala plasticizers, and a range of niche non- phthalate plasticizers; and methylamines and salts higher amines and solvents used in industrial chemicals and processing, building and construction, health and wellness, and agrochemicals markets. Its Fibers segment offers Estron acetate tow and Estrobond triacetin plasticizers for manufacturing cigarette filters; Estron natural and Chromspun solution dyed acetate yarns for use in apparel, home furnishings, and industrial fabrics; and cellulose acetate flake and acetyl raw materials for other acetate fiber producers, as well as acetyl chemical products. The company also offers aviation turbine engine oil; wet-laid nonwovens; and specialty films. Eastman Chemical Company was founded in 1920 and is based in Kingsport, Tennessee.

Eastman

Eastman


R&P Rank: 316
Sector: Basic Materials
Industry:Chemicals
H.Q Location:Tennessee
Website: www.eastman.com
Company Address:
PO BOX 511, 200 SOUTH WILCOX DRIVE, KINGSPORT TN 37660
Ph:423-229-2000

Business Analysis of Eastman

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Eastman compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Eastman to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Eastman with an interactive chart.

  1. Revenue Growth: Eastman reported a revenue growth of -6.6% year-on-year during 2016. Chemicals Industry grew at -4.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Eastman spent 73.9% of its total revenues on COGS. Chemicals industry average (COGS share of revenue) in the same period was 70.2%
  3. R&D share of Revenues: As a percentage of revenue, Eastman spent 2.4% of its total revenues on R&D. Chemicals industry average R&D spending in the same period was 2.5%
  4. SG&A share of Revenues: As a percentage of revenue, Eastman spent 7.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Chemicals industry average SG&A spending in the same period was 13.0%
  5. Inventory share of Revenues: As a percentage of revenue, Eastman spent 15.6% of its total revenues on Inventories. Chemicals industry average Inventory spending in the same period was 14.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Eastman invested 16.8% of its total revenues on Accounts Payable (A/P) Chemicals industry average Accounts Payable investment in the same period was 12.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Eastman invested 13.4% of its total revenues on Accounts Receivable (A/R). Chemicals industry average Accounts Receivable investment in the same period was 16.8%
  8. PP&E share of Revenues: As a percentage of revenue, Eastman invested 58.6% of its total revenues on Property, Plants, and Equipments (PP&E). Chemicals industry average PPE investment in the same period was 52.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Eastman invested 76.9% of its total revenues on Intangibles. Chemicals industry average Intangibles investment in the same period was 31.4%
  10. Net Margins: Eastman Net Margins in the year 2016 were 9.5%. Chemicals industry average Net Margins in the same period were 8.1%

Sector and Industry Association of Eastman

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Eastman is associated with Basic Materials Sector and Chemicals Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Eastman

With $9 billion revenues, Eastman ranked number 10 of all the companies in the US Chemicals industry. There were a total of 66 public companies in the US Chemicals industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Chemicals industry by revenues during 2016 were:

  1. Dow Chemical ($48.2 billion)
  2. Lyondellbasell Industries ($29.2 billion)
  3. DuPont ($24.6 billion)
  4. PPG Industries ($14.8 billion)
  5. Monsanto ($13.5 billion)
  6. Sherwin Williams ($11.9 billion)
  7. Praxair ($10.5 billion)
  8. Huntsman ($9.7 billion)
  9. Air Products ($9.5 billion)
  10. Eastman ($9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Eastmanand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of eastman

Praxair (PX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Praxair Inc with $11 billion revenues in the year 2016 was the number 7 Chemicals company. Read this report to know the top competitors of Praxair and identify growth and cost optimization opportunities of Praxair

Huntsman (HUN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Huntsman Corp with $10 billion revenues in the year 2016 was the number 8 Chemicals company. Read this report to know the top competitors of Huntsman and identify growth and cost optimization opportunities of Huntsman

Air Products (APD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Air Products & Chemicals Inc with $10 billion revenues in the year 2016 was the number 9 Chemicals company. Read this report to know the top competitors of Air Products and identify growth and cost optimization opportunities of Air Products

Univar (UNVR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Univar Inc. with $8 billion revenues in the year 2016 was the number 11 Chemicals company. Read this report to know the top competitors of Univar and identify growth and cost optimization opportunities of Univar

Mosaic (MOS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

The Mosaic Company with $7 billion revenues in the year 2016 was the number 12 Chemicals company. Read this report to know the top competitors of Mosaic and identify growth and cost optimization opportunities of Mosaic

Chemours (CC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

The Chemours Company with $5 billion revenues in the year 2016 was the number 13 Chemicals company. Read this report to know the top competitors of Chemours and identify growth and cost optimization opportunities of Chemours

Revenues Analysis

Eastman (EMN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Eastman Chemical Co (EMN) from 2012 to 2016. Eastman generated a total of $9 billion revenues during 2016. Eastman reported a revenue growth of -6.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Eastman (EMN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Eastman Chemical Co (EMN) from 2002 to 2016. Eastman generated a total of $9 billion revenues during 2016. Eastman reported a revenue growth of -6.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Eastman (EMN) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Eastman Chemical Co (EMN) revenue growth with Chemicals industry growth during the last five years from 2012 to 2016. Eastman reported a revenue growth of -6.6% year-over-year during 2016. The Chemicals industry growth was -4.1% year-over-year during 2016. Eastman growth was slower than the industry during 2016.

Profit Analysis

Eastman (EMN) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Eastman Chemical Co (EMN) from 2012 to 2016. Eastman reported a total net income of $854 million during 2016. Eastman generated a total of $9 billion revenues during 2016. Eastman net profit margin was 9.5% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.