Eastman expects operating profit to remain unchanged from the fourth quarter of 2006, when it reported $1 in earnings per share excluding special charges.

Analysts polled by Thomson Financial expected earnings of $1.04 per share, on average, which typically excludes special items.

"We anticipate normal seasonality will reduce demand sequentially in most of our businesses and product lines during the quarter," Chief Executive Brian Ferguson said in a statement. "We also expect continued volatility in our raw material and energy costs."

Eastman Chemical shares rose 2 cents to $64.07 in after-hours trading, after dropping 12 cents to close at $64.05.