Eastman Chemical Plunges 12.15% on Downbeat Q3 Forecast

On August 1, 2025, Eastman Chemical's stock price plummeted by 12.15% in pre-market trading, marking a significant decline that has caught the attention of investors and analysts alike.

Eastman Chemical has forecasted a downbeat third-quarter profit, attributing this to lower demand and challenges posed by U.S. trade policies. The company has announced plans to cut inventory in response to these factors, which has contributed to the recent drop in its stock price.

This forecast comes as part of a broader trend of reduced profitability and revenue for the company. Eastman Chemical's adjusted earnings and revenue for the second quarter have also fallen, further impacting investor confidence.

The company's decision to reduce inventory is a strategic move to mitigate the impact of tariffs and other trade-related challenges. However, this has raised concerns among investors about the company's ability to navigate the current economic landscape effectively.