Cytec Industries Swings To Loss In First Quarter

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.