19 April 2013 19:14 [Source: ICIS news]
HOUSTON (ICIS)--Cytec Industries expects “good growth” this year in its in-process separation segment, due to the start-up of at least four new mines and the balancing of supply and demand in the aluminium market, the US-based specialty chemicals producer said on Friday.
“I think the thing that needs to happen for us to deliver the earnings target is to get the bulk of these start-ups, get these fill-orders in and to see some recovery in the aluminium market,” said CEO Shane Fleming during conference call on the company’s Q1 2013 earnings.
Cytec’s in-process separation segment includes the production of mining chemicals used in mineral separation and processing for alumina, cobalt, copper, nickel and other minerals.
The company said it had a slow start to the year but expects growth, particularly in the second half of 2013, with the segment's net sales reaching $300m-315m (€231m-243m) and operating earnings being $18m-22m.
“We are actively pursuing new business and estimate four new mine fields this year,” Fleming said. “While it’s difficult to predict exact timing of the orders coming from these start-ups, we have sales more back-half weighted in our forecast.”
Fleming added that sales for Cytec’s alumina market are expected to increase in the second half of the year as supply and demand become more balanced.
Global demand for aluminium is still projected to grow 7% this year, with approximately 10% growth projected in China and 4% in the rest of the world, he said.
“We’ve seen some reduction in the aluminium production going back to midyear last year. It looks like supply and demand is going to start to get a little more balance,” Fleming said. “While we’re not expecting to see a significant turnaround, just a modest improvement there will help drive our results.”
($1 = €0.77)
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