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Cytec Q3 reveals improved Acrylonitrile (ACN) margins
20 Oct '06
3 min read
Specialty chemicals producer Cytec Industries Inc announced net earnings for the third quarter of 2006 of $25.0 million or $0.51 per diluted share on net sales of $863 million.
Net earnings for the third quarter of 2005 were $35.4 million, or $0.75 per diluted share, on net sales of $761 million. Included in the quarter was a gain of pre-tax $3.7 million (after-tax $2.4 million or $0.05 per diluted share) for interest rate derivative transactions associated with the Surface Specialties acquisition and a restructuring charge of pre-tax $1.1 million (after-tax $0.8 million or $0.02 per diluted share) related to employee severance. Excluding these special items, net earnings were $33.8 million or $0.72 per diluted share.
Building Block Chemicals Sales increased 60% to $96 million; Operating Earnings increased to $9.9 million
“Building Block Chemicals selling volumes increased 35%, selling prices increased 24% and the impact of exchange rate changes increased sales 1%. The increase in selling volumes is primarily related to the impact of plant shutdowns in 2005 due to the U.S. gulf coast hurricanes." "The higher selling prices primarily reflect tighter supply/demand conditions for acrylonitrile and pass through of propylene cost increases."
“Operating earnings increased to $9.9 million compared to a loss of $4.3 million in the third quarter of 2005. The increase was mostly due to the higher selling volumes, improved selling prices and increased plant production levels partially offset by significantly higher raw material costs of approximately $10 million and some difficulties in our plant operations." "We also benefited in the quarter by approximately $2.7 million relating to a payment from our former melamine joint venture partner for early termination of the manufacturing joint venture for monies we expected to receive from our former partner in the fourth quarter of this year. Also included is expense of $0.3 million related to the application of SFAS 123R.”
Net earnings for the third quarter of 2005 were $35.4 million, or $0.75 per diluted share, on net sales of $761 million. Included in the quarter was a gain of pre-tax $3.7 million (after-tax $2.4 million or $0.05 per diluted share) for interest rate derivative transactions associated with the Surface Specialties acquisition and a restructuring charge of pre-tax $1.1 million (after-tax $0.8 million or $0.02 per diluted share) related to employee severance. Excluding these special items, net earnings were $33.8 million or $0.72 per diluted share.
Building Block Chemicals Sales increased 60% to $96 million; Operating Earnings increased to $9.9 million
“Building Block Chemicals selling volumes increased 35%, selling prices increased 24% and the impact of exchange rate changes increased sales 1%. The increase in selling volumes is primarily related to the impact of plant shutdowns in 2005 due to the U.S. gulf coast hurricanes." "The higher selling prices primarily reflect tighter supply/demand conditions for acrylonitrile and pass through of propylene cost increases."
“Operating earnings increased to $9.9 million compared to a loss of $4.3 million in the third quarter of 2005. The increase was mostly due to the higher selling volumes, improved selling prices and increased plant production levels partially offset by significantly higher raw material costs of approximately $10 million and some difficulties in our plant operations." "We also benefited in the quarter by approximately $2.7 million relating to a payment from our former melamine joint venture partner for early termination of the manufacturing joint venture for monies we expected to receive from our former partner in the fourth quarter of this year. Also included is expense of $0.3 million related to the application of SFAS 123R.”
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Therese Premler-Andersson
Textile Machinery Association of Sweden (TMAS)
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