EMN underperformed the Dow Jones Index by 20% (-60% vs. -40%, respectively) due to the external force of general decline in the American economy. Since Eastman sells chemicals to cyclical industries such as construction and heavy manufacturing, the recession will adversely affect its future earnings as its client industries produce less and thus demand less chemicals.
EMN announced much higher than expected Q3 earnings. Its stock price exhibited a delayed rally.
Eastman estimated its Q3 earnings in FY08 to be $1.26 per share, 10 cents below analysts' estimates.