Cytec Industries Inc. (NYSE: CYT) announced today net earnings for the first quarter 2011 of $83.2 million or $1.66 per diluted share on net sales of $766 million. Earnings from continuing operations attributable to Cytec were $39.6 million or $0.79 per diluted share. Earnings from discontinued operations were $43.6 million or $0.87 per diluted share including the gain on the sale of Building Block Chemicals of $36.8 million after-tax or $0.73 per diluted share. Included in the quarter are several special items from continuing operations that total $0.5 million of net credit after-tax or $0.01 per diluted share and are outlined further in this release. Excluding the special items and earnings from discontinued operations, earnings from continuing operations attributable to Cytec were $39.1 million or $0.78 per diluted share.
Net earnings for the first quarter of 2010 were $24.8 million or $0.50 per diluted share on net sales of $647 million. Earnings from continuing operations attributable to Cytec were $21.0 million or $0.42 per diluted share. Earnings from discontinued operations were $3.8 million or $0.08 per diluted share. Included in the quarter were several special items that totaled $7.9 million of net expense after-tax or $0.16 per diluted share. Excluding the special items and earnings from discontinued operations, net earnings from continuing operations attributable to Cytec were $28.9 million or $0.58 per diluted share.
Shane Fleming, Chairman, President and Chief Executive Officer commented, “We are encouraged by the continued improvement in the global economy. Sales growth for the quarter of 18% included 9% from higher volumes and 8% from higher selling prices. In the Specialty Chemicals businesses, sales increased 17% with 6% from higher volumes and the remainder mostly due to our focused efforts to raise prices in response to significantly higher raw material costs. Engineered Materials sales increased 22% compared with the prior year quarter, mostly due to higher build rates in the large commercial aircraft programs, business jet markets, and rotorcraft markets. Overall, we had a good start to the year and with our strong cash position and robust strategy, we expect to continue to deliver on our commitments for 2011 and beyond.” Mr. Fleming continued, “We are also pleased to announce the completion of our divestiture of the Building Block Chemicals business. This divestiture is a major step in reshaping Cytec’s portfolio, which will allow us to narrow our focus on core growth platforms. The divestiture reduces our exposure to more cyclical end markets and provides us with additional capital to pursue bolt-on acquisitions, as well as repurchase our shares via our stock buyback program.”