17 October 2008 00:02 [Source: ICIS news]
HOUSTON (ICIS news)--The global economic chill and a series of one-time costs brought Cytec Industries's third-quarter net earnings down to $46.3m (€34.3m), a drop of $6.1m, or 12%, from the same time last year, the company said on Thursday.
Cytec released its earnings as CEO and chairman David Lilley announced he would retire on 31 December. President Shane Fleming will replace him.
A weaker global economy had begun to take a toll, although third-quarter sales started strong across most company segments. Overall sales for the quarter reached $963m, up 10%, from $875m in for the same time last year.
“Despite our solid performance in the first nine months of 2008, we are now faced with weaker market conditions in Europe and North America,” Lilley said.
Cytec, which is the third largest acrylonitrile (ACN) producer in the US, said the segment lost $1.3m, compared with earnings of $9.4m in the third quarter of 2007.
Damage from hurricanes Gustav and Ike inflicted $3m in damages to the segment, the company said, while demand destruction in the downstream acrylo fibre (AF) markets caused a 30% drop in ACN sales volumes, offsetting a 47% increase in pricing.
Company stock was $25.82/share on the New York Stock Exchange by market close on Thursday, down 63% from a 52-week-high of $69.87/share.
($1 = €0.74)
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