Cytec Reaffirms Full Year 2010 Adjusted EPS Outlook Revises Segment Earnings Guidance
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Woodland Park, New Jersey, November 29, 2010 - Cytec Industries Inc. (NYSE:CYT)
reaffirmed today its outlook for 2010 full year adjusted diluted earnings per share to be in a
range of $3.20 to $3.50. Cytec is revising its segment guidance as follows.
The Coating Resins segment now anticipates full year sales in a range of $1,375 to $1,400
million, from the previous range of $1,350 to $1,450 million, for a revised fourth quarter sales
range of approximately $300 to $325 million. Full year operating earnings are now forecasted to
be in a range of $60 to $70 million versus our prior estimate of $70 to $80 million for a revised
fourth quarter range of a $4 million operating loss to $6 million of operating earnings. The
decline in the Coating Resins fourth quarter guidance is due primarily to a less favorable
product mix than anticipated and by higher levels of customer destocking to manage year end
working capital levels in response to weaker fourth quarter demand and also in anticipation of
weaker demand growth in North America and Europe in early 2011. Overall visibility in demand
for the coating markets remains poor.
The Building Block Chemicals segment is experiencing improved margins in both melamine and
acrylonitrile in the fourth quarter. This is forecasted to increase Building Block Chemicals full year operating earnings to a range of $35 to $40 million versus our prior range estimate of $25
to $30 million for a revised fourth quarter operating earnings range of $6 to $11 million.
The Engineered Materials segment continues to see growth in its order backlog and the
demand outlook remains strong. As a result, we now anticipate full year sales of $750 to $760
million from the prior guidance of $730 to $760 for a revised fourth quarter sales range of $181
to $191 million. Full year operating earnings are now forecasted to be in a range of $110 to
$115 million, up from the prior guidance range of $105 to $115 million or a revised fourth quarter
range of $23 to $28 million.
The outlook for the remaining segments, Additive Technologies, In Process Separation plus
Corporate and Unallocated, is unchanged from its previous guidance. A schedule of the revised
full year segment sales and operating earnings follows:
Business Segment Net Sales Operating Earnings Guidance
Coating Resins $1,375 to $1,400 $60 to $70
Additive Technologies $240 to $250 $35 to $40
In Process Separation $290 to $310 $55 to $60
Engineered Materials $750 to $760 $110 to $115
Building Block Chemicals $550 to $600 $35 to $40
Corporate and Unallocated ($25)
Total $3,205 to $3,320 $270 to $300
Shane Fleming, President and Chief Executive Officer commented, "Overall, we are pleased
with our progress in improving Cytec's 2010 earnings over 2009 and expect this trend to
continue in 2011. We are disappointed in the reduction in Coatings Resins fourth quarter
results, however, we do expect increased 2011 full year Coating Resins earnings over 2010
levels. While demand visibility remains poor and somewhat volatile for Coating Resins, our
expectation is for the improved earnings in 2011 to be primarily driven by the increasing
demand for our environmentally-friendly Coating Resins technologies, including sales from our
new product introductions."
Full details of the company's 2011 sales and earnings outlook will be provided when it releases
its full year 2010 results on January 27, 2011.
Use of Non-GAAP Measures
Management believes that earnings per share before special items, which is a non-GAAP
measurement, is meaningful to investors because it provides a view of the Company with
respect to ongoing operating results. Special items represent significant charges or credits that
are important to an understanding of the Company's overall operating results in the period
presented. Such non-GAAP measurements are not recognized in accordance with generally
accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP
measures of performance.
Corporate Profile
Cytec's vision is to deliver specialty chemical and material technologies beyond our customers'
imagination. Our focus on innovation, advanced technology and application expertise enables
us to develop, manufacture and sell products that change the way our customers do business.
These pioneering products perform specific and important functions for our customers, enabling
them to offer innovative solutions to the industries that they serve. Our products serve a diverse
range of end markets including aerospace composites, structural adhesives, automotive and
industrial coatings, chemical intermediates, electronics, inks, mining and plastics.
Cytec Industries Inc.
Five Garret Mountain Plaza
Woodland Park,
New Jersey 07424
www.cytec.com
Contact:
Jodi A. Allen
(973) 357-3283
