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)
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