David Drillock, Vice President and Chief Financial Officer commented, “Operating cash flows from continuing operations were $21.5 million for the first quarter 2011. During the quarter our average net working capital days decreased compared to the fourth quarter of 2010 due to our continued focus on our working capital. While trade accounts receivable increased $59.6 million due to higher revenues, the average days sales outstanding for the first quarter of approximately 49 days was flat with the fourth quarter 2010 average. Inventory increased by $49.4 million in the first quarter of 2011 due to higher demand and production, while average days on hand of approximately 69 days was slightly up from the average for the fourth quarter of 2010 of 67 days. Accounts payable increased by $114.6 million in the quarter due to the higher demand levels and an increase of 7 days to 58 days versus the average fourth quarter of 2010 level of 51 days. The decrease in accrued expenses reflects payments against our prior year incentive compensation accruals.
“Capital spending for the quarter was $26 million with approximately 45% related to Specialty Chemical segments and 55% of the spending attributable to Engineered Materials, versus $28 million spent in the first quarter of 2010.
“During the quarter we purchased 440,000 shares of our common stock for $24 million. The remaining amount on the current share repurchase authorization is approximately $170 million.”2011 Outlook Mr. Fleming commented, “We expect to build on our solid first quarter performance and we remain focused on addressing the headwind of increasing raw material costs across our businesses through higher selling prices. Assuming the current economic recovery continues, we are maintaining our guidance for 2011 continuing full year adjusted diluted earnings per share attributable to Cytec in the range of $3.15 to $3.50, consistent with the detailed guidance we provided in January for each segment.