Light weighting in the packaged drinks market has brought Eastman Chemical Company to the point of considering the sale of its PET business after reporting weak results for North America in beverages.
First quarter 2010 results were negatively impacted by continued difficult market conditions for PET in North America, Eastman’s quarterly report stated.
US-based Eastman has asked its financial advisor Bank of America Merrill Lynch to review its strategic options, including a possible divestiture.
A slowdown in the growth of beverages, and the down-gauging of packaging, have cut demand growth rates in the US for PET since 2008, Eastman has reported.
In the Performance Polymers segment, which includes PET business, sales revenue in first quarter 2010 increased by $35 million or 22% compared to first quarter 2009. But this was partly due to higher selling prices in response to rising raw material and energy costs, and volume grew by just 6%.
The company says it expects smaller Performance Polymers segment losses in 2010 ‘based on improved operational performance and the resulting capability for a more profitable mix of product sales’.
