Cytec Industries' Shares Tumble As Q2 Results Miss View; Reaffirms Outlook

(RTTNews) - Shares of Cytec Industries Inc. (CYT) tumbled almost 9 percent in extended trades Thursday after the specialty materials and chemicals company reported second-quarter financial results below Wall Street expectations.

The company's net income for the quarter declined 26 percent from last year, reflecting lower sales and one-time items. However, the company reiterated its earnings outlook for fiscal 2015.

Woodland Park, New Jersey-based Cytec Industries' net earnings for the second quarter were $54.7 million or $0.75 per share, compared to $73.6 million or $1.00 per share for the year-ago quarter.

The latest quarter's results included special items totaling $3.4 million of net expense after-tax, or $0.04 per share.

Excluding special items, net earnings from continuing operations for the latest quarter were $59.6 million or $0.81 per share, compared to $62.7 million or $0.85 per share in the second quarter of last year.

On average, eleven analysts polled by Thomson Reuters expected the company to earn $0.85 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the second quarter declined 4 percent to $508.2 million from $527.1 million a year ago. Analysts had a consensus revenue estimate of $551.73 million for the quarter.

Aerospace Materials sales rose 1 percent to $264.8 million, mainly due to selling price increases. In Process Separation sales increased 6 percent to $109.6 million.

Meanwhile, Industrial Materials sales declined 26 percent to $63.6 million. Additive Technologies sales decreased 6 percent to $70.2 million, mostly related to foreign exchange.

Looking ahead to fiscal 2015, Cytec reaffirmed its outlook for adjusted earnings of $3.15 to $3.35 per share. The Street expects the company to earn $3.28 per share for the year.

Cytec's 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 25, 2015 to shareholders of record as of August 10, 2015.

CYT closed Thursday's trading at $60.41, down $1.00 or 1.63 percent on a volume of 570,141 shares. In after-hours, the stock further declined $5.41 or 8.96 percent to $55.00.