US Cytec Q2 earnings rise 1.7% on higher sales

19 July 2012 22:38  [Source: ICIS news]

HOUSTON (ICIS)--US-based specialty chemicals producer Cytec Industries reported on Thursday second-quarter net earnings of $35.7m (€29.3m), up 1.7% from $35.1m reported for the same time last year, as an increase in sales from two segments helped offset a rise in taxes.

Second-quarter taxes were $25.4m, up from $6.4m reported for the same time last year, Cytec said.

The increase reflected a $14.5m income-tax charge connected to Cytec trying to sell its coatings-resins business, the company said.

Cytec expects to complete the sale by the end of the year, it said.

Because the coatings-resins unit is up for sale, Cytec treated its earnings separately from its other three segments, engineered materials, in-process separation and additive technologies.

Second-quarter net sales for those three segments were $404.0m, up 16% from $347.3m reported for the same time last year, Cytec said.

Cytec attributed the increase to larger sales volumes to aerospace customers and higher demand for mining chemicals.

Second-quarter cost of sales for the three segments was $273.8m, up 12% from $244.1m from the same time last year.

For Cytec's coatings resins business, sales were $394m, down 13% from $451m reported for the same time last year. Sales volumes fell because Cytec stopped selling some of its low-margin products.

However, operating earnings for the segment reached $39.2m, up from $30.0m from the same time last year, because of cheaper raw-material costs.

($1 = €0.82)


By: Al Greenwood
+1 713 525 2645



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index