Cytec Announces Quarterly Results/Adjusts Full-Year Outlook
WOODLAND PARK, NJ -- Cytec Industries Inc. has announced net earnings for the second quarter 2010 of $61.8 million or $1.24 per diluted share on net sales of $874 million. Included in the quarter is a special item charge of $3.1 million of net expense after-tax, or $0.06 per diluted share. Excluding this special item, net earnings were $64.8 million or $1.31 per diluted share.
Net loss for the second quarter of 2009 was $24.8 million, or $0.52 per diluted share, on net sales of $685 million. Included in the quarter were several special items that totaled $24.2 million of net expense after-tax or $0.51 per share. Excluding these special items, net loss was $0.6 million or $0.01 per diluted share.
Shane Fleming, Chairman, President and Chief Executive Officer commented, “I’m extremely pleased to announce that our results for the second quarter mark a record earnings performance for Cytec. This outstanding result was partially driven by year-over-year sales growth across all of our business segments due to a much improved economic environment. The company’s best prior performance was the second-quarter 2008, and we have exceeded that level with 13 percent lower sales. We were able to deliver stronger earnings at lower sales levels due to the benefits of our 2009 cost reduction actions, improved product mix from the sales of new products and pruning of low margin products as well as our ability to recover the raw material escalations during the quarter. Engineered Materials sales were up sharply versus the prior-year quarter, as program ramp-ups are starting to occur in the large commercial transport sector, reinforcing our belief that we are moving past the trough of the aerospace cycle. On a consolidated level, sales increased across all regions versus the prior-year period, especially in North America where we experienced greater than a 40 percent increase in sales. Finally, we continue to maintain and improve upon our working capital gains from 2009 which is reflected in our strong cash generation.”
In Coating Resins, overall selling volumes were up by 27 percent versus the second-quarter 2009, with continued strong demand in the company’s large industrial coatings markets across all regions. Selling prices increased by 2 percent and the impact of exchange rates decreased sales by 4 percent. Operating earnings of $28.0 million was up significantly versus an operating loss of $19.2 million in the second quarter of 2009 principally due to higher volumes across all product lines in this segment assisted by a lower cost structure resulting from 2009 restructuring actions.
In Additive Technologies, overall selling volumes were up by 4 percent versus the second-quarter 2009, attributed to stronger demand broadly across most industrial markets partially offset by reduced sales due to the divestiture of certain low-value products. Excluding these divested sales, segment sales were up 20 percent from the prior period. Selling prices increased by 2 percent and the impact of exchange rates decreased sales by 1 percent. Operating earnings of $10.7 million were up compared to the $3.1 million in the second quarter of 2009 mainly as a result of higher selling volumes and better product mix.
Cytec In-Process Separation sales increased 22 percent to $71 million; operating earnings increased to $14.3 million. Cytec Engineered Materials sales increased by 10 percent to $196 million; operating earnings increased to $38.6 million. Building Block Chemicals sales increased by 89 percent to $172 million; operating earnings increased to $15.0 million.
Looking forward, Fleming commented, “Although we are still operating in a dynamic economic environment, the improved global demand we have experienced across our chemical businesses in the first half of 2010 leads us to a positive outlook for the remainder of 2010. This outlook assumes that the economic recovery continues, and that we see our normal seasonal downturn in the second half of 2010. We now expect to achieve 2010 revenues of $3.2 to $3.4 billion versus our prior projection of $2.7 to $3.0 billion, and as adjusted 2010 diluted earnings per share in a range between $3.20 to $3.50, up from our prior as adjusted forecast of $1.90 to $2.40 per diluted share.”
Net loss for the second quarter of 2009 was $24.8 million, or $0.52 per diluted share, on net sales of $685 million. Included in the quarter were several special items that totaled $24.2 million of net expense after-tax or $0.51 per share. Excluding these special items, net loss was $0.6 million or $0.01 per diluted share.
Shane Fleming, Chairman, President and Chief Executive Officer commented, “I’m extremely pleased to announce that our results for the second quarter mark a record earnings performance for Cytec. This outstanding result was partially driven by year-over-year sales growth across all of our business segments due to a much improved economic environment. The company’s best prior performance was the second-quarter 2008, and we have exceeded that level with 13 percent lower sales. We were able to deliver stronger earnings at lower sales levels due to the benefits of our 2009 cost reduction actions, improved product mix from the sales of new products and pruning of low margin products as well as our ability to recover the raw material escalations during the quarter. Engineered Materials sales were up sharply versus the prior-year quarter, as program ramp-ups are starting to occur in the large commercial transport sector, reinforcing our belief that we are moving past the trough of the aerospace cycle. On a consolidated level, sales increased across all regions versus the prior-year period, especially in North America where we experienced greater than a 40 percent increase in sales. Finally, we continue to maintain and improve upon our working capital gains from 2009 which is reflected in our strong cash generation.”
In Coating Resins, overall selling volumes were up by 27 percent versus the second-quarter 2009, with continued strong demand in the company’s large industrial coatings markets across all regions. Selling prices increased by 2 percent and the impact of exchange rates decreased sales by 4 percent. Operating earnings of $28.0 million was up significantly versus an operating loss of $19.2 million in the second quarter of 2009 principally due to higher volumes across all product lines in this segment assisted by a lower cost structure resulting from 2009 restructuring actions.
In Additive Technologies, overall selling volumes were up by 4 percent versus the second-quarter 2009, attributed to stronger demand broadly across most industrial markets partially offset by reduced sales due to the divestiture of certain low-value products. Excluding these divested sales, segment sales were up 20 percent from the prior period. Selling prices increased by 2 percent and the impact of exchange rates decreased sales by 1 percent. Operating earnings of $10.7 million were up compared to the $3.1 million in the second quarter of 2009 mainly as a result of higher selling volumes and better product mix.
Cytec In-Process Separation sales increased 22 percent to $71 million; operating earnings increased to $14.3 million. Cytec Engineered Materials sales increased by 10 percent to $196 million; operating earnings increased to $38.6 million. Building Block Chemicals sales increased by 89 percent to $172 million; operating earnings increased to $15.0 million.
Looking forward, Fleming commented, “Although we are still operating in a dynamic economic environment, the improved global demand we have experienced across our chemical businesses in the first half of 2010 leads us to a positive outlook for the remainder of 2010. This outlook assumes that the economic recovery continues, and that we see our normal seasonal downturn in the second half of 2010. We now expect to achieve 2010 revenues of $3.2 to $3.4 billion versus our prior projection of $2.7 to $3.0 billion, and as adjusted 2010 diluted earnings per share in a range between $3.20 to $3.50, up from our prior as adjusted forecast of $1.90 to $2.40 per diluted share.”
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