Correction: April 16 Cytec Industries Story
The Associated Press
04/23/09 - 05:30 PM EDT
In an April 16 story about Cytec Industries Inc.'s first-quarter results, The Associated Press erroneously reported the period that included a net charge of $3.4 million, or 7 cents per share. Those items were included in the 2008 first quarter, not the 2009 first quarter.
Results in the 2009 first quarter included a net charge of $2.8 million, or 6 cents per share.
A corrected version of the story appears below:
WOODLAWN PARK, N.J. (AP) — Cytec Industries Inc. on Thursday reported it moved to a loss in the first quarter and announced major cost-cutting steps in light of weakened demand.
The chemical company reported a net loss of $100,000, or break-even earnings per share for the quarter, compared with a net profit of $49.1 million, or $1.01 per share, for the same quarter of the prior year.
Results for the most recent quarter included one-time items amounting to $2.8 million, or 6 cents per share, in charges. Excluding these items, the company earned $2.7 million, or 6 cents per share.
Year-ago results included net charges of $3.4 million, or 7 cents per share, impact. Excluding these items, net earnings for first quarter 2008 were $52.5 million, or $1.08 per share.
Analysts surveyed by Thomson Reuters anticipated the company would earn 29 cents per share for the quarter on revenue of $771.4 million. Analyst estimates typically exclude one-time items.
The company said total sales were $612 million for the quarter, down from $973 million in sales in the prior year's quarter.
Cytec's president and chief executive, Shane Fleming, said it saw a sharp decline in sales across all its chemical product lines because of the downturn in the auto, construction and general industrial markets.
Cytec announced various restructuring efforts in January, including cutting 600 positions, which they say will reduce its costs in the second and third quarters. The company said Thursday that it will take other steps to maintain its liquidity in light of the recession. Those steps include further reductions that will result in an over 12 percent reduction of its global work force when totaled with the cuts announced in January.
The company also said it is working with a lender to amend a revolving credit line and is reviewing its capital spending plans.
Additionally, the company reduced its quarterly dividend by 90 percent from 11.25 cents per share to 1.25 cents per share.
The company said based on its cost reduction steps and anticipated market changes, it expects to earn $1.35 to $1.75 per share for the 2009 fiscal year. Analysts expected the company to earn $2.12 per share for the year.
"We are confident that the immediate actions we have taken will benefit operating earnings, cash flow and enhance liquidity over the course of the year," Fleming said.
The company is scheduled to hold a conference call Friday to discuss the results.
Shares of Cytec fell $1.64, or nearly 9 percent, to $16.60 in after-hours trading Thursday following the announcement.
