Cytec Q2 net income grows strongly on industrial materials earnings

18 July 2014 13:23 Source:ICIS News

LONDON (ICIS)--Cytec Industries’ second-quarter earnings more than doubled to $73.6m on improved earnings for its industrial materials division, as well as gains from discontinued operations, the US-headquartered carbon fibres producer said late on Thursday.

Net sales for the quarter were up 2.6% year on year to $527.1m, the company added. Earnings from continued operations were steady year on year at $62.5m, but Cytec recorded an $11.1m gain for the three months to 30 June 2014, primarily related to the sale of its coatings resins business.

The sale has led to a $15.5m impairment charge on the company’s earnings in the second quarter of 2013, compounded by a $12.5m after-tax loss from the sale of its Umeco product line.

After losses and gains from discontinued operations were factored in, Cytec’s second-quarter 2014 net earnings stood at $73.6m, and its second-quarter 2013 earnings at $34.6m.

Cytec’s industrial materials division earnings nearly doubled year on year to $9.6m during the second quarter, while in process separation operations earnings increased slightly to $28.5m compared to $28.4m in the second quarter of 2013.

Aerospace materials and additive technologies division earnings were down slightly year on year despite increases in sales revenues.

The Industrial Materials business delivered another strong quarter, with sales up 19% after excluding sales from the divested distribution product line, related to strong demand in high performance automotive and tooling markets.  Aerospace Materials also delivered steady sales growth related to build rate increases in the large commercial transport sector,” said Cytec's CEO Shane Fleming.

“Demand trends in our key growth markets look positive and I am confident in our ability to deliver our increased earnings per share projections for the year,” he added.

By Tom Brown