Correction: April 16 Cytec Industries Story

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.