Cytec Industries Q2 Profit Down 15%, But Lifts Full-year Outlook

(RTTNews) - Specialty chemicals maker Cytec Industries Inc. (CYT) on Thursday reported a 15 percent decline in profit for the second quarter as strong sales growth was more than offset by a loss related to the sale of the company's coating resins business. Looking ahead, the company raised its earnings outlook for fiscal 2013.

In the company's Aerospace Materials segment, sales to external customers for the second quarter grew 15 percent to $249.9 million. In Process Separation segment sales rose 6 percent to $106.4 million on higher selling volumes due to strong demand for mining products.

Meanwhile, Industry Materials segment sales rose more than six-fold to $85 million. However, the sales were below the company's forecast due mainly to weak European demand impacting sales of structural materials to the high performance automotive and motorsports markets as well as lower process material sales related mainly to a large U.S. wind energy customer.

Additive Technologies segment sales declined 2 percent to $72.5 million on lower selling volumes due to a planned rationalization of a low margin product within the specialty additives product line.

Woodland Park, New Jersey-based Cytec's second-quarter net income was $34.6 million or $0.83 per share, down from $40.6 million or $0.86 per share in the year-ago period. The latest quarter's results include loss of $28.0 million or $0.68 per share from discontinued operations, related to the company's $1.03 billion sale of the coating resins business to private equity firm Advent International.

Excluding items, adjusted earnings from continuing operations were $62.6 million or $1.51 per share, compared to adjusted earnings of $38.1 million or $0.81 per share in the same period last year. On average, five analysts polled by Thomson Reuters expected the company to earn $1.18 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 27 percent to $513.8 million from $404.0 million in the year-ago period. Analysts had a consensus revenue estimate of $499.65 million.

Looking ahead, the company raised its fiscal 2013 outlook to a range of $4.70 to $4.90 per share from previous range of $4.50 to $4.75 per share. Analysts expect the company to earn $4.70 per share for the year.

Separately, Cytec said its board of directors declared a regular quarterly cash dividend of $0.125 per share on the common stock of the company. The dividend is payable on August 26, 2013 to shareholders of record as of August 9, 2013.

CYT closed Thursday's regular trading session at $79.62, up $1.08 or 1.38 percent on a volume of 957,600 shares. However, in after-hours, the stock declined $3.62 or 4.55 percent to $76.00.