Home / Knowledge / News / Textiles / Favorable impact of cost reduction programs on Cytec earnings
Favorable impact of cost reduction programs on Cytec earnings
17
Jul '09
Cytec Industries Inc announced a net loss for the second quarter 2009 of $24.8 million or $0.52 per share on net sales of $685 million. Included in the quarter are several special items that total $24.2 million of expense after-tax or $0.51 per share and are outlined further in this release. Excluding these special items, net loss was $0.6 million or $0.01 per diluted share.

Net earnings for the second quarter of 2008 were $56.5 million or $1.16 per diluted share on net sales of $1,006 million. Included in the 2008 quarter were several special items that totaled $2.0 million of net expense after-tax or $0.04 per diluted share. Excluding these special items, net earnings were $58.5 million or $1.20 per diluted share.

Shane Fleming, Chairman, President and Chief Executive Officer commented, “Sales declined across all specialty chemicals segments in the second quarter compared with the prior year due to the weak economy compounded by customer destocking activity. However, we are encouraged by our specialty chemicals sales growth of 18% from the first quarter 2009 and month-to month improvement during the second quarter, which supports our view that our customers have completed the bulk of their destocking initiatives. Engineered Materials was also impacted by the destocking actions that are ongoing within the large commercial transport sector, as well as significantly reduced build rates in the business jet and industrial sectors.

“We are making great progress in implementing our structural cost reduction programs, and these actions will have a greater favorable impact on our earnings in the second half of this year. Our actions to improve our cash flow and liquidity position also continue to move forward, with progress on cash flow generation and debt reduction exceeding our expectations. Our earnings and margins were adversely affected as we operated almost all of our plants at reduced rates due to weak demand and our own aggressive destocking actions.”

Cytec Coating Resins sales decreased 38% to $295 million; operating loss of $19.2 million.
In Coating Resins, overall selling volumes were down by 30% versus the second quarter 2008, with continued weak demand in the industrial coatings markets impacting the segment. Selling prices decreased by 3% and the impact of exchange rates decreased sales by 5%.

Operating loss of $19.2 million was down versus earnings of $21.9 million in the second quarter of 2008 principally due to the weak global economic conditions impacting volumes across all product lines in this segment. Sales in the second quarter 2009, however, are approximately 20% above the first quarter 2009 with improvements in each product line. Also adversely impacting earnings in the quarter was the impact of decreased production rates to reduce finished goods inventory.


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Silke Brand-Kirsch
Schlegel und Partner

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search