WOODLAND PARK, NJ - Cytec Industries Inc. announced net earnings for the fourth quarter of 2010 of $48.0 million, or $0.95 per diluted share, on net sales of $700 million. Included in the quarter are several special items that total $6.1 million of net income after tax, or $0.12 per diluted share. Excluding these special items, net earnings were $41.9 million, or $0.83 per diluted share.
Net earnings for the fourth quarter of 2009 were $9.8 million, or $0.20 per diluted share, on net sales of $648 million. Included in the quarter were several special items that totaled $24.6 million of net expense after tax, or $0.50 per share. Excluding these special items, net earnings were $34.4 million, or $0.70 per diluted share.
Shane Fleming, Chairman, President and Chief Executive Officer commented, “Earnings per share, excluding special items, increased almost 20 percent versus the same period in 2009. Our segment results were varied with Engineered Materials having a strong quarter as selling volumes were significantly higher across the commercial aerospace sector. Coating Resins selling volumes were flat with the prior period, but raw material costs were up sharply and despite implementing significant price increases, we were unable to fully recover the higher costs.”
Cytec Coating Resins sales increased six percent to $348 million. Operating earnings decreased to $3.9 million. In Coating Resins, overall selling volumes were flat as the company experienced seasonal destocking in its industrial coatings markets in the fourth quarter 2010, particularly in Europe, versus restocking in the fourth quarter 2009. Selling prices increased by nine percent, and the impact of exchange rates decreased sales by three percent.
Cytec Additive Technologies sales increased seven percent to $65 million. Operating earnings increased to $8.8 million. In Additive Technologies, selling volumes were up by six percent versus the fourth quarter of 2009 due to higher demand for the company’s differentiated technologies globally. Selling prices increased by two percent, and the impact of exchange rates decreased sales by one percent.
Cytec In Process Separation sales increased by one percent to $81 million. Operating earnings decreased to $13.3 million. In Process Separation selling volumes were down by one percent versus the fourth quarter 2009 and selling prices increased by two percent.
Cytec Engineered Materials sales increased by 15 percent to $206 million. Operating earnings increased to $28.2 million. In Cytec Engineered Materials, selling volumes increased by 15 percent compared to the prior-year period, primarily due to improved demand related to new programs in the large commercial transport sector. Selling prices increased by one percent, and the impact of exchange rates reduced sales by one percent.
In the fourth quarter of 2010, the company committed to a plan to divest the Building Block Chemicals business and is in active discussions with a potential buyer. As a result, financial results in the segment are reported as discontinued operations excluding continuing costs that will remain as part of Cytec.
Net earnings for full year ended Dec. 31, 2010, was $172.3 million, or $3.46 per diluted share of which $2.85 per diluted share is from continuing operations on sales of $2,748 million. Net earnings for discontinued operations of Building Block Chemicals for the full year ending Dec. 31, 2010, were $30.3 million, or $0.61 per diluted share on sales of $600 million. Included in the results for the full year were special items that total a net pre-tax charge of $13.4 million ($7.1 million after tax, or $0.14 per diluted share).
Fleming commented, “Looking forward to 2011, we are forecasting overall demand improving for our specialty chemical and materials segments. For our specialty chemical segments, Asia and Latin America will be higher growth, with modest growth expected in North America and Europe. Raw material volatility remains a concern, particularly in our Coating Resins segment. In Engineered Materials, demand continues to improve in the commercial aircraft sectors, although growth in new programs will be less than originally anticipated. With the pending sale of Building Block Chemicals expected to be completed in the first quarter, we will compare our adjusted diluted earnings per share guidance to the continuing operations diluted earnings per share amounts in 2010. Our guidance for 2011 full year adjusted diluted earnings per share is a range of $3.15 to $3.50 on sales of $2.9 to $3.0 billion, which compares to sales of $2.7 billion and adjusted diluted earnings per share from continuing operations in 2010 of $2.99.”