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Cytec Industries' CEO Discusses Q2 2011 Results - Earnings Call Transcript

Our team did a great job executing required pricing actions and were able to secure $54 million in price in the segment, more than offsetting the roughly $47 million in raw material cost escalations.

The chart on Slide 5 displays monthly sales revenue for this business. This shows the strong sales performance in the first 2 months of the quarter with increased revenue from price increases more than offsetting reduced demand and the drop-off in June sales as customers reduced inventories.

Coating Resins' operating earnings for the quarter were $28.2 million, a slight improvement over the very strong prior year quarter. I'm particularly pleased with our disciplined pricing actions in the first half of this year as we accumulatively achieved $98 million in price increases in this segment over the past 6-month period.

Moving to Additive Technologies. Slide 6 shows sales in the segment of $73 million, an increase of over 10% versus the second quarter 2010. Once again, increased selling price was the primary driver of growth, achieving 8% versus the prior year period with an additional 5% benefit from exchange rates.

Selling volumes are down by 3% although this is primarily due to capacity limitations constraining product availability in Polymer Additives rather than reduced demand. That said, we did see a slower pace in the North American market but our results were due much more to volume shortages and the economic slowdown. Also in Specialty Additives, we continued to experience a sold-out situation with some products. The order book in our additives product line remains strong, and we are actively working on capacity expansions to meet increasing market demand.

Read the rest of this transcript for free on seekingalpha.com

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