Leadership & People

Eastman Chemical To Shuffle Top Executive Posts Next Year

(DOW JONES NEWSWIRES) - Eastman Chemical Co. (EMN) said James P. Rogers will succeed J. Brian Ferguson as the company's president and chief executive in May.

The maker of chemicals, synthetic fibers and plastics said Ferguson will then serve as executive chairman through 2010. He became chairman and chief executive in 2002.

Rogers, 57 years old and president of the company's chemicals and fibers business group since 2006, joined the company in 1999.

"We have restored the fundamental financial health of our company, broadened our business and commercial capabilities, and built a results-driven culture," Ferguson said. "The company is well positioned to endure the difficult economic situation because of previous actions we've taken."

In October, the company reported third-quarter net income soared as price increases and cost-saving measures proved successful; however, much of the gains for the company came from shedding year-earlier restructuring charges.

Eastman reported a rise in its gross margin in the first quarter of the year but saw its margin fall flat in the second quarter and reported a decline in the third quarter amid rising raw material costs. Tough competition in the markets for basic chemicals keep margins low for most chemical companies, leaving them more vulnerable to energy costs.

Shares of Eastman were unmoved in after-hours trading after closing up 10% at $31.77 in the regular session.

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com