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X-Rite completes GretagMacbeth acquisition
September 2006
Cytec’s 2Q results show improved sales and income Cytec Industries Inc posted net earnings for the second quarter of 2006 of U$48.4 million on net sales of $853 million. Pre-tax charges related to restructuring and integration expenses were offset by gains relating to a legal dispute and an income tax benefit. For the comparable quarter in 2005, net earnings were $11.9 million on net sales of $813 million. Excluding special items, 2Q 2005 net earnings were $43.3 million. The results continued the positive momentum from the first quarter, says David Lilley, chairman, president and CEO: “The benefits of our previous initiatives are now being realized in our financial results and in spite of the headwinds of higher raw material costs our operating margin improved to almost 10%”. Sales for Cytec Performance Chemicals, which includes polymer additives, increased 1% to $230 million in 2Q 2006, with selling volumes down 1%, selling prices up 2% and exchange rate changes flat. Quarterly operating earnings for the segment increased to $18.3 million from $15.4 million, primarily due to the benefits of restructuring and a better product mix partially offset by higher raw material costs. During the quarter, Cytec recorded a restructuring charge of $22.6 million relating to the previously announced termination of manufacturing for two polymer additive light stabilizers at the company’s Botlek plant [ADPO, August 2006]. The move is designed to improve earnings from polymer additives, which continue to see severe price competition for mature products, Lilley says. Contact: Cytec Industries Inc, 5 Garret Mountain Plaza, West Paterson, NJ 07424, USA; tel: +1973-357-3100; fax: +1-973-357-3060; URL: www.cytec.com
Additives for Polymers
Amazys Holding AG for around US$280 million. Amazys develops, markets and supports hardware, software and services to measure and communicate colour under the GretagMacbeth brand. The combined company will be called X-Rite Incorporated. X-Rite says it expects the transaction to create a global market leader in the colour industry. The company also believes that technology innovation can be accelerated through the acquisition. There is also significant synergy potential, with the combined company expected to achieve annual operating expense savings of approximately $25 million in year three. X-Rite said it expects to incur cash restructuring costs of about $20 million during the first three years. The management team includes X-Rite and GretagMacbeth executives. Michael C. Ferrara is the CEO, Thomas J. Vacchiano, Jr the president and COO, Mary E. Chowning the CFO and Dr Francis Lamy the CTO. The X-Rite Board of directors now comprises nine members, including six current directors of X-Rite and three former directors of Amazys Holding AG. The global headquarters for the combined entity is in Grandville, MI, USA, with European HQ in Regensdorf, Switzerland, and Asia Pacific HQ in Hong Kong. Contact: X-Rite Inc, 3100 44th St SW, Grandville, MI 49418, USA; tel: +1-616-534-7664; fax: +1-616-534-0723; URL: www.xrite.com
Ahlstrom to start speciality reinforcement production in the USA
X-Rite completes GretagMacbeth acquisition
Ahlstrom is to invest approximately 5.2 million (US$6.5 million) in a new speciality glass fibre reinforcement plant in the USA. The investment will consist of a new building and machinery located in Darlington, SC, where Ahlstrom’s Filtration business already operates a plant. The construction work began this summer and is estimated to be completed in early 2007. The plant will mainly serve North American customers and other dollar-based markets.
US-based supplier of colour measurement technology solutions X-Rite Incorporated has completed its acquisition of Swiss firm
Ahlstrom has lately strengthened its global market position as a speciality reinforcement supplier, especially for the wind energy and
NEWS AND VIEWS
9
Cytec’s 2Q results show improved sales and income Cytec Industries Inc posted net earnings for the second quarter of 2006 of U$48.4 million on net sales of $853 million. Pre-tax charges related to restructuring and integration expenses were offset by gains relating to a legal dispute and an income tax benefit. For the comparable quarter in 2005, net earnings were $11.9 million on net sales of $813 million. Excluding special items, 2Q 2005 net earnings were $43.3 million. The results continued the positive momentum from the first quarter, says David Lilley, chairman, president and CEO: “The benefits of our previous initiatives are now being realized in our financial results and in spite of the headwinds of higher raw material costs our operating margin improved to almost 10%”. Sales for Cytec Performance Chemicals, which includes polymer additives, increased 1% to $230 million in 2Q 2006, with selling volumes down 1%, selling prices up 2% and exchange rate changes flat. Quarterly operating earnings for the segment increased to $18.3 million from $15.4 million, primarily due to the benefits of restructuring and a better product mix partially offset by higher raw material costs. During the quarter, Cytec recorded a restructuring charge of $22.6 million relating to the previously announced termination of manufacturing for two polymer additive light stabilizers at the company’s Botlek plant [ADPO, August 2006]. The move is designed to improve earnings from polymer additives, which continue to see severe price competition for mature products, Lilley says. Contact: Cytec Industries Inc, 5 Garret Mountain Plaza, West Paterson, NJ 07424, USA; tel: +1973-357-3100; fax: +1-973-357-3060; URL: www.cytec.com
Additives for Polymers
Amazys Holding AG for around US$280 million. Amazys develops, markets and supports hardware, software and services to measure and communicate colour under the GretagMacbeth brand. The combined company will be called X-Rite Incorporated. X-Rite says it expects the transaction to create a global market leader in the colour industry. The company also believes that technology innovation can be accelerated through the acquisition. There is also significant synergy potential, with the combined company expected to achieve annual operating expense savings of approximately $25 million in year three. X-Rite said it expects to incur cash restructuring costs of about $20 million during the first three years. The management team includes X-Rite and GretagMacbeth executives. Michael C. Ferrara is the CEO, Thomas J. Vacchiano, Jr the president and COO, Mary E. Chowning the CFO and Dr Francis Lamy the CTO. The X-Rite Board of directors now comprises nine members, including six current directors of X-Rite and three former directors of Amazys Holding AG. The global headquarters for the combined entity is in Grandville, MI, USA, with European HQ in Regensdorf, Switzerland, and Asia Pacific HQ in Hong Kong. Contact: X-Rite Inc, 3100 44th St SW, Grandville, MI 49418, USA; tel: +1-616-534-7664; fax: +1-616-534-0723; URL: www.xrite.com
Ahlstrom to start speciality reinforcement production in the USA
X-Rite completes GretagMacbeth acquisition
Ahlstrom is to invest approximately 5.2 million (US$6.5 million) in a new speciality glass fibre reinforcement plant in the USA. The investment will consist of a new building and machinery located in Darlington, SC, where Ahlstrom’s Filtration business already operates a plant. The construction work began this summer and is estimated to be completed in early 2007. The plant will mainly serve North American customers and other dollar-based markets.
US-based supplier of colour measurement technology solutions X-Rite Incorporated has completed its acquisition of Swiss firm
Ahlstrom has lately strengthened its global market position as a speciality reinforcement supplier, especially for the wind energy and
NEWS AND VIEWS
9