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Cytec Industries' CEO Discusses Q3 2011 Results - Earnings Call Transcript

During the course of this presentation and in responses to your questions, you will hear certain forward-looking statements. Our actual results may differ materially. Please read our commentary on forward-looking statements in Slide #2 of our supporting materials or at the end of our news release or the statements in our quarterly and annual SEC filings.

In addition, our discussion includes certain non-GAAP financial measurements as defined under SEC rules. We have provided a reconciliation of those non-GAAP financial measures to the most directly comparable GAAP measure at the end of our press release. A copy of our for press release is available on our Investor Relations website.

Now let me turn over the call to Shane.

Shane D. Fleming

Thank you, Jodi, and good morning, everyone. I appreciate you taking the time to join our third quarter earnings call. I'll begin on Slide 3.

Overall sales in the quarter were $778 million, an 11% increase over the prior-year quarter. The year-on-year sales growth was driven by 8% selling price increases across all of our business segments with additional support from foreign exchange. Volumes versus the prior-year quarter were down by 1%, attributal primarily to declines in Coating Resins and, to a lesser degree, in Additives Technologies and largely offset by strong volume growth in the Engineered Materials and In Process Separation segments which I'll describe in more detail in the following slides.

I continue to be pleased with the pricing execution, particularly given the softening demand environment. In the quarter, we delivered $59 million in price versus $47 million in raw material increases, and year-to-date, the company achieved approximately $180 million in price, which more than offset cost increases of $157 million.

Net earnings from operations in the third quarter of this year were $53.9 million or $1.10 per diluted share, excluding the special items that Dave will explain later. This represents a 72% improvement over the prior quarter's -- prior-year quarter's EPS.

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