Eastman Chemical expects to cut about 600 jobs

[UpInArms]

http://www.forbes.com/work/newswire/2003/10/03/rtr1098920.html

NEW YORK, Oct 3 (Reuters) - Eastman Chemical Co. (nyse: EMN - news - people), a maker of soda bottle plastic and specialty chemicals, on Friday said it was cutting about 600 jobs as costs increase and will take a third-quarter charge of about $750 million.

Quarterly earnings, excluding asset impairments and restructuring charges, will be slightly lower, partly due to competitive pricing and historically high raw material costs. Third-quarter sales revenue is expected to rise by 5 percent compared with a year earlier.

Eastman Chemical also expects third-quarter asset impairment and restructuring charges of about $750 million before taxes, as it continues to review its portfolio of products and businesses, particularly within the Eastman Division.

...more...

what??? more layoffs??? I saw the employment number go up for August - these people just haven't gotten the message :shrug:

[ClintonTyree]

1. Eastman Chemical..............

and Kodak are two seperate entities now, but Kodak itself, based in Rochester, NY. is rumored to be cutting up to 5,000 people later this year. Kodak has a history of laying off people at the end of the year; just their way of saying, "Happy Holidays".

[Drifter]

6. I'm a Kodak Employee ... ask me anything

Cheers
Drifter

[goforit]

2. One of the big supporters of BUSH!!!......Unbelievable.

:wow:

[kodi]

3. NO Y? The West has just built chemical and polymer plants in China

this is the business i am in. the huge, multinational chemical companies like beyer, clariant, du pont, rohm & haas, eastman, B F goodrich, koch, etc., etc., and etc., have invested TENS AND TENS of $BILLIONS in Chinese chemical plants.

this was done for three major reasons:

1. reduced labor costs
2. negligable environmental regulations
3. potential local markets for manufactured products

all of these have made it cheaper to make things in china than the US


...just like levi jeans, tv sets, stereos, plastic knives & forks, and rubber bands.

BTW: the US government wants this...its referred to as "free trade"

[ProfessorGAC]

5. Sorry But That's Not Accurate

It's NOT cheaper to make CPI products in China. The problem is with the exportation costs and shipping costs to get already low margin commodities back to the U.S.

Almost ALL (more than 95%) of the investiture by the CPI is for the burgeoning markets in east asia. The demand for modern products in China is growing exponentially, and the CPI can't afford the costs of transporting $0.12 per pound products on boats all the way to China.

My information (trade mags) is that at least 98% of all product made in China will be sold in China and Southeast Asia. You can check recent issues of Chemical Marketing Reporter for confirmation.
The Professor

[hatrack]

4. Let's see . . .

Together with the Tellabs and Delphi articles, that makes about 2700 layoffs announced just today.

Oh, almost forgot, Boeing in Wichita will be cutting another 100 or so tech department jobs at the beginning of 2004.

I wonder what Chimpy will have to say about these developments. Oh, never mind, he'll talk about the need for further tax cuts, and how if we hadn't run up a half-trillion deficit, things would be even worse.

NOW I understand! Thanks, Chimpy!