Cytec announces 3% rise in net earnings

18 July 2008 00:24  [Source: ICIS news]

HOUSTON (ICIS news)--Increased sales volumes and successful price hikes helped US acrylonitrile (ACN) producer Cytec boost second-quarter net earnings by 3% over the same period one year ago, the company said on Thursday.  

The New Jersey-based company reported second-quarter net earnings of $56.5m (€35.6m) on net sales of $1bn, compared with earnings of $54.8 on sales of $864m in the second-quarter of 2007. Cytec is the third largest ACN producer in the US.  

A combination of a 13% sales volume increase in its engineered materials segment and price hikes helped Cytec stave off the effects of higher energy and raw material costs, company chairman and CEO David Lilley said.

In its basic chemicals segment, which produces ACN and melamine, sales volumes increased by 2% in the quarter while selling prices increased by 46%. 

“We expect the markets to remain balanced, although the high price for acrylonitrile is creating some demand destruction, but we will continue to pass along her raw material costs as necessary,” Lilley said.

 Lilley said the company expected continued weak demand from North America, with growth slowing in Europe and remaining stable in Asia and Latin America. The company stuck by its forecast of 10% growth in annual operating earnings, an increase of $4.32 per diluted share.

“We expect higher raw material costs versus our original forecasts. We plan to offset the raw material costs impact with price increase,” Lilley said.

($1 = €0.63)

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By: Ben Lefebvre
+1 713 525 2653

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