Specialty chemicals company Cytec Industries Inc. (CYT) on Thursday reported a profit for the fourth quarter compared to a loss in the year-ago period, reflecting a 7.7% increase in sales and fewer charges. For fiscal year 2010, the company forecast adjusts earnings per share in line with analysts' estimates.
The Woodland Park, New Jersey-based Cytec posted net earnings attributable to the company of $9.8 million or $0.20 per share, compared to net loss of $350.7 million or $7.39 per share in the prior-year period.
The results for the latest quarter include special items that totaled $24.6 million of net expense after-tax or $0.50 per share. The year-ago quarter's results include a goodwill impairment charge of $358.3 million after tax or $7.55 per basic share and other special items that totaled net $2.9 million after-tax or $0.06 per basic share.
Excluding special items, net earnings for the quarter rose to $34.4 million or $0.70 per share from $4.7 million or $0.10 per share a year ago. On average, seven analysts polled by Thomson Reuters expected the company to earn $0.39 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly sales rose 7.7% to $752.0 million from $698.2 million a year ago and topped analysts' consensus revenue estimate of $700.73 million.
Shane Fleming, Chairman, President and Chief Executive Officer of Cytec said, "We are pleased with the results of our fourth quarter which reflect the significant impact of our cost reduction and cash flow improvement efforts, particularly our working capital initiative. Selling volumes in our Chemical segments increased from improved demand and restocking activities. In Engineered Materials, sales declined during the quarter mostly due to significantly lower build rates in the business and regional jet markets."
Segment wise, coating resins sales for the quarter rose 16% from last year to $328.6 million, while additive technologies sales increased 3% to $60.5 million and in process separation sales were up 10% from last year to $80.6 million. Meanwhile, engineered materials sales declined 5% to $178.4 million. Building block chemicals sales increased 10% from a year ago to $103.9 million.
Cytec said it reduced its debt by $20 million in the fourth quarter, bringing its year to date debt reduction to $173 million, representing a significant improvement from the beginning of the year.
For fiscal year 2009, Cytec reported a net loss of $2.5 million or $0.05 per share that narrowed from $198.8 million or $4.16 per share in the prior year.
Excluding items, net earnings plunged to $64.1 million or $1.32 per share from $167.0 million or $3.46 per share a year ago. Analysts expected the company to earn $1.01 per share for the year.
Net sales for the year were $2.79 billion, down 23.4% from $3.64 billion in the previous year. Analysts had a consensus revenue estimate for the year of $2.73 billion.
For fiscal year 2010, Cytec forecasts adjusted earnings per share in a range of $1.90-$2.40. Analysts currently anticipate the company to earn $2.00 per share for the year. .
Fleming said, "Our results this past quarter continue to demonstrate the excellent progress we have made with our restructuring efforts, our working capital initiative and importantly staying close to our customers. These efforts plus the demand improvement and restocking in the fourth quarter gives us good momentum coming into 2010. However, we remain cautious about the fragility of the economic recovery in 2010."
Segment wise, Cytec projects Coatings Resins segment sales for the year in a range of $1.25 billion-$1.40 billion and operating earnings in a range of $45 million-$60 million. Additives Technologies sales for the year are projected in a range of $200 million-$230 million and operating earnings are expected in a range of $15 million-$20 million.
In-Process Separation segment sales are expected to be in a range of $280 million-$310 million and operating earnings are forecast in a range of $40 million-$50 million. Engineered Materials full-year sales are projected in a range of $650 million-$680 million and operating earnings are expected to be in a range of $80 million-$90 million.
The company also projects Building Block Chemicals sales for the year to be approximately $400 million and operating earnings in a range of $7 million-$10 million.
In addition, Cytec forecasts capital spending for 2010 in a range of $140 million-$160 million.
Separately, the company said its board of directors declared a regular quarterly cash dividend of $0.0125 per share on the common stock of the company, payable on February 25, 2010 to shareholders of record as of February 10, 2010.
CYT closed Thursday's regular trading at $37.48, down $0.11 or 0.29% on a volume of 0.35 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.