Eastman faces market risks from fluctuating foreign currency exchange rates, commodity prices, and interest rates. Potential legal proceedings, including product liability and environmental claims, pose a risk. The company's environmental remediation costs and asset retirement obligations are uncertain and could materially impact future earnings and financial position. Uncertain tax positions and the resolution of ongoing tax examinations also present a risk. The company's reliance on working capital management programs and supplier finance programs exposes it to potential credit risk.
Financial Upside
Eastman's sales revenue increased in Q3 2024 and the first nine months of 2024, primarily due to higher sales volume. Gross profit also increased in both periods, though partially offset by lower selling prices in some cases. The company repurchased shares of common stock, indicating a strategy to return value to shareholders. The company has access to a $1.5 billion revolving credit agreement, providing liquidity for general corporate purposes.
