Analyst Note| Seth Goldstein, CFA |
Eastman reported decent first-quarter results despite an incident at one of the company's plants that forced a temporary shutdown for some of the quarter. Adjusted EBIT was down nearly 9% year over year versus the prior-year quarter. However, when excluding management's estimated impact of the shutdown, adjusted EBIT would have risen nearly 23%. Management expects to recover most of the lost sales and profits, which primarily affected the advanced materials segment, through higher volumes in the remainder of the year. We think this is achievable as the plant is back up and running.