20 April 2012 18:17 [Source: ICIS news]
HOUSTON (ICIS)--Cytec expects to complete a transaction for its coatings resins business by the end of the year, the CEO of the US-based specialty chemicals and materials firm said on Friday.
Cytec announced last October that it was looking at options for the underperforming coating resins business, including a possible divestment. The business accounted for more than half of Cytec's 2012 first-quarter sales of $783m.
However, CEO Shane Fleming still left it open whether Cytec would seek to sell the business outright or spin it off.
“We remain quite confident and positive about our ability to sell the business, if that is indeed the route we will pursue,” he said in response to analysts's questions during Cytec’s first-quarter results conference call.
Fleming said that Cytec has seen interest from other companies in buying the business. He did not say whether that interest was from strategic buyers or financial investors, and declined to provide further details.
Meanwhile, Cytec is on track with work to separate the business, he said.
The company plans to provide an update later in the second quarter, and “we are targeting completion of this transaction by year-end,” he added.
Cytec’s coatings business is heavily exposed to European markets, which remain relatively weak, Fleming said.
However, the company is seeing good coatings volume recovery in ?xml:namespace>
For the three months ended 31 March, Cytec’s coatings business reported a 44% year-on-year increase in operating earnings, to $28.8m (€21.9m), largely because of higher selling prices and restructuring actions.
However, the segment’s sales fell 6% year on year to $405m, because of a 9% decline in volumes due to weak demand, particularly in Europe and
($1 = €0.76)
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