Cytec's 2Q profit falls on sales drop, charges

AP News
Posted: Jul 21, 2011 6:55 PM
Cytec's 2Q profit falls on sales drop, charges

Special chemicals manufacturer Cytec Industries Inc. said Thursday that second-quarter net income fell almost 50 percent on lower sales volumes and one-time charges.

For the quarter that ended June 30, Cytec reported net income of $35.1 million, or 70 cents a share, compared with $61.8 million, or $1.24 a share, in the year-ago quarter.

The Woodland Park, N.J., manufacturer recorded one-time after-tax charges equal to $9.7 million, or 19 cents per share, stemming from restructuring activities primarily in the coating resins segment and environmental liability at an inactive site.

It also recorded a loss of $1.1 million, or 2 cents a share, from discontinued operations.

Excluding the items, Cytec said earnings from continuing operations were $45.9 million or 92 cents a share.

Net sales increased 13.7 percent to $797.9 million, in part because Cytec achieved a 10 percent overall increase in prices that helped offset increased raw materials costs. It also benefited from currency exchange rates.

Overall sales volumes fell 1 percent.

Analysts surveyed by FactSet had predicted earnings, excluding items, of 90 cents a share on revenue of $783.6 million.

For the year, the company has revised its forecast, predicting earnings of $3.25 a share to $3.50 a share, compared with its prior forecast of $3.15 a share to $3.50 a share. Sales are expected to range between $3 billion and $3.2 billion, compared with the previous estimate of $2.9 billion to $3 billion.

Analysts have predicted 2011 earnings of $3.41 per share on sales of $3.05 billion.

Cytec released its earnings after the markets closed. Its shares rose 86 cents to close at $56.96 and were unchanged in after-hours trading.