19 October 2012 19:13 [Source: ICIS news]
HOUSTON (ICIS)--Cytec does not expect to see a near-term improvement in its specialty additives business, the CEO of the US-based specialties chemicals and materials firm said on Friday.
That market may be experiencing underlying demand reduction, and not just destocking, he added.
Fleming pointed in particular to slow acrylic acid markets. Cytec provides additives products to those markets.
“Until you see acrylic acid use pick up again, that [specialty additives] business is going to stay soft,” he said.
“And even some of our industrial surfactants that are used in adhesives and coatings don’t look like as if there’s any short-term bounce-back there,” he said.
However, Cytec is more positive on the polymer additives side of the business, Fleming said.
“The automotive portion of that business is doing well here in the ?xml:namespace>
Cytec cut its full-year 2012 sales and earnings guidance for its additives technologies segment, following a 9% year-on-year decline in volumes in the three months ended 30 September on lower demand for specialty additives products.
Additives technologies' 2012 sales are now expected in the range of $270m-$280m (€208m-€216m), and operating earnings are expected at around $37m-$39m. Cytec’s previous guidance was for $290m-$300m in sales and $40m-$45m in operating earnings.
In the third quarter, additives technologies sales fell by 11% year on year to $66.4m and operating earnings fell by 25% to $9.6m.
Cytec's shares were up by 0.4% at $66.44/share at 12:37 hours on the New York Stock Exchange.
($1 = €0.77)
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