02 February 2010 21:24 [Source: ICIS news]
(adds Cytec CFO comment in paragraphs 3-4)
HOUSTON (ICIS news)--US specialty chemical producer Cytec Industries said on Tuesday it has completed an estimated $800m (€576m) agreement to supply Canadian aircraft maker Bombardier.
Cytec’s engineering materials segment will supply carbon fibre composites for Bombardier’s new CSeries and Learjet 85 aircraft programmes, the chemical maker said. It will also sell other specialty chemical material for the aircraft manufacturer’s other lines.
Cytec vice president and chief financial officer Dave Drillock said the deal with Bombardier was part of the company’s larger effort to expand its footprint in the aerospace market, and not necessarily to hedge against Boeing’s troubled rollout of its 787 Dreamliner aircraft, which was supposed to go into production in May 2008.
“This deal was not to pick up slack from Boeing delays, rather it is part of our strategy to work with all aerospace customers on their new and existing programs,” Drillock said.
Cytec said the deal could be worth as much as $800m over the next 10 years.
Bombadier, based in Montréal, calls itself the world’s third-largest civil aircraft maker.
Cytec reported $9.8m in net earnings for the 2009 fourth quarter, up from a net loss of $350.7m in the 2008 quarter.
The company said it expects sales to commercial aviation manufacturers to gain steam in the coming year, although the military and regional aircraft sectors could remain in a slump.
($1 = €0.72)
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