Shares of Eastman Chemical (EMN) plummeted 13.61% in Friday's pre-market trading session following the release of disappointing second-quarter results and a gloomy outlook for the third quarter. The chemical company is grappling with significant headwinds from a challenging global macroeconomic environment and increasing customer caution.

Eastman Chemical reported adjusted earnings per share of $1.60 for the second quarter of 2025, falling short of analysts' consensus estimate of $1.73. Revenue also missed expectations, coming in at $2.287 billion compared to the estimated $2.302 billion. The company's overall revenue saw a slight decline of 2% year-over-year, although its Advanced Materials segment showed some resilience with a 7% increase in revenue.

Looking ahead, Eastman Chemical painted a pessimistic picture for the third quarter, projecting adjusted earnings per share of around $1.25, significantly below analysts' expectations of $1.91. The company cited several factors contributing to this downbeat outlook, including a $50 to $60 million negative impact from aggressive inventory reduction actions aimed at driving cash generation. Additionally, Eastman expects a mid-single-digit volume decline influenced by tariffs and continued customer caution. In response to these challenges, the company announced plans to reduce inventory by more than $200 million below current levels. CEO Mark Costa commented, "As we have entered the second half of the year, we are encountering a global macroeconomic environment that remains challenging. Customer caution is intensifying due to a changing tariff landscape and weak underlying demand."