Split of Eastman Chemical From Kodak Remains Speculative

Abstract

During the past decade, Eastman Chemical, which had nearly $4 billion in 1992 sales, has transformed from a quiet, sedate chemical operation to a forward, active, and vigorous participant in both the U.S. and world chemical markets. Rumors have been rampant that it is about to become independent of its ailing photography parent, Eastman Kodak. Eastman Chemical vice president R. Wiley Bourne says this is not so, but the chemical company's management remains realistic about the possibility just the same. Analysts, too, speculate that Kodak, which had $20 billion in 1992 sales, could sell Eastman Chemical to lighten its $10 billion in long-term corporate debt. In January, when Kodak hired Christopher J. Steffen as its new chief financial officer, the financial community thought this outsider, a veteran of financial turnarounds at Honeywell and Chrysler, might arrange just such a deal. Analyst Albert Turner, of the Chicago-based credit-rating agency Duff & Phelps, notes that Steffen has ...