Cytec reaffirms full year EPS outlook
Cytec Industries Inc announced net earnings for the second quarter 2008 of $56.5 million or $1.16 per diluted share on net sales of $1,006 million. Included in the quarter are special items that total $2.0 million of net after-tax expense or $0.04 per diluted share and are outlined further in this release. Excluding these special items, net earnings were $58.5 million or $1.20 per diluted share.
Net earnings for the second quarter of 2007 were $54.8 million, or $1.11 per diluted share, on net sales of $864 million. Included in that quarter was an after-tax net restructuring charge of $1.8 million or $0.04 per diluted share and is described further in this release. Excluding this item, net earnings were $56.6 million or $1.15 per diluted share.
David Lilley, Chairman and Chief Executive Officer said, “Our second quarter results reflect the strong performance of our Engineered Materials segment, with significantly higher selling volumes versus the same period a year ago. In the Specialty Chemicals segments, we continue to grow volumes, except in North America where we are still experiencing lower demand.
In addition, we are incurring significantly higher raw material, energy and freight costs which are impacting our earnings. We remain committed to raising prices in a selective way to offset the rising costs and allow a reasonable return on our investment. The Building Block Chemicals segment was also a strong contributor in the quarter, as they have successfully passed along the higher selling prices, more than offsetting the higher raw material costs.”
Cytec Performance Chemicals Sales increased 9% to $202 million; Operating Earnings decreased to $20.5 million.
Mr. Lilley continued, “In Cytec Performance Chemicals, overall selling volumes were up by 2% primarily due to increases in mining chemicals as our new technologies continue to gain acceptance in the market. Selling prices in the segment increased by 2% and the impact of exchange rate changes increased sales by 5%.”
“Operating earnings of $20.5 million were down compared to the $23.7 million in the second quarter of 2007. The decrease is primarily attributable to the higher raw material and freight costs resulting from the escalation of crude oil prices.”
Cytec Surface Specialties Sales increased 13% to $473 million; Operating Earnings decreased to $22.2 million.
“In Cytec Surface Specialties, overall selling volumes were up by 1% due primarily to volume growth in the Asia Pacific region as we continued to experience weaker demand in North America and modest growth in Europe. Selling prices were flat and the impact of exchange rate changes increased sales by 12%.”
“Operating earnings of $22.2 million include a charge of $1.4 million of accelerated depreciation related to the exit of our Pampa, Texas site. This was lower than the $32.8 million in same period last year and primarily attributable to higher raw materialand freight costs versus the second quarter 2007.”