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Cytec Industries' CEO Discusses Q4 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 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 fourth quarter earnings call. I'm very pleased with our finish to 2011, and the momentum we built going into 2012. I'll begin on Slide 3.

Overall sales in the quarter was $731 million, a 4% increase over the prior-year quarter. The year-on-year sales growth was driven by 3% selling price increases across all of our business segments. I continue to be pleased with our pricing execution particularly given the softening demand environment.

In the quarter, we delivered $48 million in price versus $33 million in raw material increases. And year-to-date, the company achieved approximately $217 million in price, more than offsetting cost increases. Volumes versus the prior-year quarter were down by 2%, attributable primarily to volume declines in Coating Resins and to a lesser degree, in Additives Technologies. This was largely offset by strong volume growth in the Engineered Materials and In Process Separation segments, which I will describe in more detail in the following slides.

Net earnings from operations in the fourth quarter this year were $40.3 million, or $0.86 per diluted share, excluding the special items that Dave will explain. This represents a 25% improvement over the prior-year quarter's EPS and a clear indication of our progress to leverage sales growth and a stronger earnings for the company.

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