Cytec Q2 sales slide 15%, but lifts 2013 outlook

Loss from discontinued operations was $28.0 million or $0.68 per diluted share. Included in the quarter for continuing operations are several special items that total less than $0.1 million of net charges after-tax, or $0.00 per diluted share. Excluding these special items, earnings from continuing operations were $62.6 million or $1.51 per diluted share.     

Net earnings attributable to Cytec for the second quarter of 2012 were $40.6 million or $0.86 per diluted share. Net sales from continuing operations were $404 million. Earnings from continuing operations were $12.4 million or $0.26 per diluted share. Earnings from discontinued operations were $28.6 million or $0.61 per diluted share.

Net earnings attributable to non-controlling interests (which are associated with the discontinued operations) were $0.4 million or $0.01 per diluted share. Included in the quarter for continuing operations were several special items that totaled $25.7 million of net expense after-tax or $0.55 per diluted share.  Excluding the special items, earnings from continuing operations were $38.1 million or $0.81 per diluted share.     

As a reminder, earnings for all periods have been adjusted to include the favorable impact of the change in pension and other post retirement benefit accounting.  The second quarter 2013 adjusted earnings per share from continuing operations includes $0.14 as a result of the retrospective application of the change in pension accounting, and the second quarter 2012 includes $0.08.

Shane Fleming, Chairman, President and Chief Executive Officer commented, "Our second quarter results reflect the solid performance of the Aerospace Materials and In Process Separation growth platforms.  Both segments delivered top line growth and significant earnings expansion, with aerospace organic growth driven by increased large commercial aircraft build rates, and mining driven by copper and base metal production.   

"The main area of weakness continues to be the Industrial Materials business, which is plagued by a challenging European economy that has resulted in softer demand across our core industrial markets. 

"Despite the current weak demand, I remain very positive about the longer term growth potential in the industrial materials market as we continue to see increased opportunities for the use of our composite materials, particularly in the automotive sector.  Overall demand for the products that we supply to the aerospace materials and specialty chemicals markets remains resilient despite the uncertainties in the global economy."

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Cytec Industries