...September 1, 2023 First-half sales are down 14% on destocking. Like many chemical producers, Eastman Chemical Co.'s inventory destocking hampered demand for its products in the first two quarters of 2023. Its geographic diversity wasn't much help amid slow growth globally, but its broad end- market diversity provided a little bit of relief. Markets with heavier deterioration included building and construction (12% of sales), agriculture (8%), and medical (7%). This may continue in the latter part of the year, affecting Eastman's additives and functional products (AFP) segment. The durables and electronics (12%) market saw destocking as well, which we expect to continue in the third quarter to a lesser degree. Unlike these trends, the destocking theme seems to have concluded in the second quarter for stable markets such as personal care (7%), water treatment (6%), and packaging. The transportation sector (15%, Eastman's largest end market) remains robust, with solid automotive growth driven...
