WOODLAND PARK, NJ – Cytec Industries Inc. has reaffirmed its outlook for 2010 full-year adjusted diluted earnings per share to be in a range of $3.20 to $3.50. Cytec is revising its segment guidance.
The Coating Resins segment now anticipates full-year sales in a range of $1,375 to $1,400 million, from the previous range of $1,350 to $1,450 million, for a revised fourth-quarter sales range of approximately $300 to $325 million. Full-year operating earnings are now forecasted to be in a range of $60 to $70 million versus the prior estimate of $70 to $80 million for a revised fourth-quarter range of a $4 million operating loss to $6 million of operating earnings. The decline in the Coating Resins fourth-quarter guidance is due primarily to a less favorable product mix than anticipated and by higher levels of customer destocking to manage year-end working capital levels in response to weaker fourth-quarter demand and also in anticipation of weaker demand growth in North America and Europe in early 2011.
The Building Block Chemicals segment is experiencing improved margins in both melamine and acrylonitrile in the fourth quarter. This is forecasted to increase Building Block Chemicals full-year operating earnings to a range of $35 to $40 million versus the prior range estimate of $25 to $30 million for a revised fourth-quarter operating earnings range of $6 to $11 million.
The Engineered Materials segment continues to see growth in its order backlog, and the demand outlook remains strong. As a result, the company anticipates full-year sales of $750 to $760 million from the prior guidance of $730 to $760 for a revised fourth-quarter sales range of $181 to $191 million. Full-year operating earnings are now forecasted to be in a range of $110 to $115 million, up from the prior guidance range of $105 to $115 million or a revised fourth quarter range of $23 to $28 million.
Shane Fleming, President and Chief Executive Officer, commented, “Overall, we are pleased with our progress in improving Cytec’s 2010 earnings over 2009 and expect this trend to continue in 2011. We are disappointed in the reduction in Coatings Resins fourth-quarter results; however, we do expect increased 2011 full-year Coating Resins earnings over 2010 levels. While demand visibility remains poor and somewhat volatile for Coating Resins, our expectation is for the improved earnings in 2011 to be primarily driven by the increasing demand for our environmentally friendly Coating Resins technologies, including sales from our new product introductions.”