Home / Knowledge / News / Textiles / Cytec announces several initiatives to improve cash flow
Cytec announces several initiatives to improve cash flow
13
Jan '09
Cytec Industries Inc announced a reduction to its adjusted earnings per share forecast for the full year 2008, a non-cash goodwill impairment charge to be included in fourth quarter 2008 reported earnings and a series of restructuring actions.

Shane Fleming, Chairman, President and Chief Executive Officer commented, “The unprecedented downturn in the global economy over the last several months has led to a dramatic reduction in demand for our products across many of our industrial markets leading to reduced earnings in the fourth quarter. We do not expect to see a short term turnaround in the economy and, as a result, we are taking proactive measures to reduce costs, improve cash management and better position Cytec to focus on its growth platforms.”

The company now anticipates full year 2008 earnings per share, after adjusting for special items, to be a range of $3.45 to $3.50 per share, down from the prior estimate of $3.75 to $3.85 per share.

The Company is also in the process of conducting its annual impairment test for goodwill. The adverse impact of the current macroeconomic business environment on the long-term financial outlook for the Surface Specialties segment has led the Company to conclude an impairment has occurred related to the carrying value of the segment's goodwill. While still preliminary, the Company expects a pre-tax noncash special item charge up to approximately $500 million will be included in 2008's fourth quarter results to reduce the carrying value of goodwill related to the Surface Specialties segment.

Restructuring Plan
Mr. Fleming explained, “It is our view that the current economic environment will extend at least throughout 2009 and we must therefore take immediate actions to align our cost structure to the changing and challenging demand environment.”

Cytec's restructuring initiatives are intended to build on its market and technology position in engineered materials, eco-friendly coating resins and mining and phosphine chemistry while navigating through the challenging conditions in its markets globally. Cytec expects that these initiatives should lead to a reduction of approximately 600 employee positions, approximately 10% of Cytec's headcount, mostly in the Specialty Chemicals product lines. While still not finalized, Cytec anticipates these initiatives should result in an estimated net pre-tax restructuring special item charge up to $140 million over the next several quarters which includes an estimated non-cash charge of around $50 million for the write-off of assets. Also included in this is an estimated $4 million restructuring charge in the fourth quarter of 2008. These actions are targeted to achieve $85 million in annualized cost savings by the end of 2009.

Cytec has ongoing initiatives to reduce costs and improve efficiencies in all aspects of its operations, including consolidation of manufacturing facilities, reduction in excess manufacturing capacity, migration to regional shared services and simplifying and streamlining its business processes and organization. As part of these initiatives, Cytec anticipates, subject to consultation and negotiation with our Works Councils, that its site in La Llagosta, Spain will be closed and that production of certain low margin product lines at its sites in Drogenbos, Belgium and Hamburg, Germany will be significantly reduced or shut down.

Must ReadView All

Apparel/Garments | On 23rd Feb 2017

Pakistan invites Chinese firms to invest in Apparel Park

At a road show to set up the Quaid-e-Azam Apparel Park, Pakistan’s...

Courtesy: Intertextile Shanghai

Apparel/Garments | On 23rd Feb 2017

Intertextile Shanghai to reveal S/S 2018 trends

Both, international as well as domestic trend forums will reveal...

Textiles | On 22nd Feb 2017

Bangladesh exporters want duty-free access to US, Brazil

Garment and apparel exporters of Bangladesh are seeking duty-free...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search