Cytec Industries Inc. (NYSE:CYT) reaffirmed today its outlook for 2010 full year adjusted diluted earnings per share to be in a range of $3.20 to $3.50. Cytec is revising its segment guidance as follows. The Coating Resins segment now anticipates full year sales in a range of $1,375 to $1,400 million, from the previous range of $1,350 to $1,450 million, for a revised fourth quarter sales range of approximately $300 to $325 million. Full year operating earnings are now forecasted to be in a range of $60 to $70 million versus our prior estimate of $70 to $80 million for a revised fourth quarter range of a $4 million operating loss to $6 million of operating earnings. The decline in the Coating Resins fourth quarter guidance is due primarily to a less favorable product mix than anticipated and by higher levels of customer destocking to manage year end working capital levels in response to weaker fourth quarter demand and also in anticipation of weaker demand growth in North America and Europe in early 2011. Overall visibility in demand for the coating markets remains poor. The Building Block Chemicals segment is experiencing improved margins in both melamine and acrylonitrile in the fourth quarter. This is forecasted to increase Building Block Chemicals full year operating earnings to a range of $35 to $40 million versus our prior range estimate of $25 to $30 million for a revised fourth quarter operating earnings range of $6 to $11 million. The Engineered Materials segment continues to see growth in its order backlog and the demand outlook remains strong. As a result, we now anticipate full year sales of $750 to $760 million from the prior guidance of $730 to $760 for a revised fourth quarter sales range of $181 to $191 million. Full year operating earnings are now forecasted to be in a range of $110 to $115 million, up from the prior guidance range of $105 to $115 million or a revised fourth quarter range of $23 to $28 million.
The outlook for the remaining segments, Additive Technologies, In Process Separation plus Corporate and Unallocated, is unchanged from its previous guidance. A schedule of the revised full year segment sales and operating earnings follows:
|Business Segment||Net Sales||Operating Earnings Guidance|
|Coating Resins||$1,375 to $1,400||$60 to $70|
|Additive Technologies||$240 to $250||$35 to $40|
|In Process Separation||$290 to $310||$55 to $60|
|Engineered Materials||$750 to $760||$110 to $115|
|Building Block Chemicals||$550 to $600||$35 to $40|
|Corporate and Unallocated||($25)|
|Total||$3,205 to $3,320||$270 to $300|
Full details of the company’s 2011 sales and earnings outlook will be provided when it releases its full year 2010 results on January 27, 2011.Use of Non-GAAP Measures Management believes that earnings per share before special items, which is a non-GAAP measurement, is meaningful to investors because it provides a view of the Company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the Company’s overall operating results in the period presented. Such non-GAAP measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. Forward-Looking and Cautionary Statements Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec’s filings with the Securities and Exchange Commission. Corporate Profile Cytec’s vision is to deliver specialty chemical and material technologies beyond our customers’ imagination. Our focus on innovation, advanced technology and application expertise enables us to develop, manufacture and sell products that change the way our customers do business. These pioneering products perform specific and important functions for our customers, enabling them to offer innovative solutions to the industries that they serve. Our products serve a diverse range of end markets including aerospace composites, structural adhesives, automotive and industrial coatings, chemical intermediates, electronics, inks, mining and plastics.