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Acquisition boosts Cytec's second quarter results
Additives for Polymers
from the first half of 2004. Including restructuring charges, net income for the six-month period was CHF146 million, down from CHF201 million for the comparable period in 2004. R&D investment remained at 4.1% of sales. Sales prices for 1H 2005 were 2% higher than the previous year and were continually increased throughout the period. Volumes were up 7% over the first half of 2004. In local currencies, sales in Europe were up 14%, sales in the Americas increased 1% and in Asia Pacific, 10%. Growth in China and India was particularly strong. Demand in some customer industries, notably personal care and packaging, was strong, while in others, like the automotive industry, demand was lower than the first half of 2004. The company reports that its Project Shape costcutting initiative is on track, with savings of approximately CHF20 million realized in the first half of 2005. Ciba is accelerating and expanding the project which will increase the expected savings for 2005 to CHF60 million, from the CHF35 million previously forecasted, with 600 positions in total reduced during the year. Overall, annualized savings from Project Shape will increase to CHF180 million by 2007. In 2Q 2005, Ciba achieved sales of CHF1.858 billion, an increase of 8% in local currencies and 7% in Swiss francs on 2Q 2004 levels, with both sales prices and increased volumes contributing. Compared with 1Q 2005, sales increased 4% signalling further improvements, the company says. Net income for the second quarter, including restructuring, was CHF79 million compared to CHF99 million in 2Q 2004. For the Plastic Additives segment, six-month sales of CHF936 million were on a par with the high levels reached in 1H 2004, Ciba says. Strong sales price increases were achieved during the period, offsetting raw material cost increases and lower volumes. Production levels were reduced in the second quarter to limit inventory build ups. Operating income before restructuring charges was CHF121 million, up 11% in Swiss francs. As part of its continued expansion in Asia, Ciba has announced an investment in a new production facility for plastic additives in Asia Pacific “in the next few
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October 2005
months”, to benefit from the anticipated growth in plastics manufacturing in Asia and the Middle East. Contact: Ciba Specialty Chemicals, Klybeckstrasse 141, CH-4002 Basel, Switzerland; tel: +41-61-636-4444; fax: +4161-636-3019; URL: www.cibasc.com
Acquisition boosts Cytec’s second quarter results Cytec Industries posted net earnings for 2Q 2005 of US$11.9 million on net sales of $813 million. Excluding special items, quarterly net earnings were $43.3 million. For the comparable period of 2004, net earnings were $31.2 million ($33.6 million excluding special items) on net sales of $422 million. The 93% increase in quarterly sales is primarily attributable to the acquisition of the Surface Specialties business. Net earnings, including special items, for the six months ended 30 June 2005 were $5.3 million on sales of $1,377 million. Net earnings for the first half of 2004 were $64.4 million on sales of $837 million. Cytec Performance Specialties segment, which includes the company’s polymer additives product lines, achieved a 13% increase in 2Q sales to $187.5 million. Selling prices were up 6%, selling volumes increased 4% and exchange added 3% to sales, says David Lilley, chairman, president and CEO. The selling price increases were across all product lines, helping to compensate for much higher raw material and energy costs. The slowdown in industrial demand, principally in Europe and in Asia, experienced in the latter part of the first quarter continued, and this impacted polymer additives, which experienced lower volumes. The $6.0 million increase in operating earnings to $17 million was primarily due to higher selling volumes and prices more than offsetting raw material cost increases. For the year as a whole, Lilley expects the segment to post a 5–10% increase in sales. Contact: Cytec Industries Inc, 5 Garret Mountain Plaza, West Paterson, NJ 07424, USA; tel: +1-973-357-3100; fax: +1-973-3573060; URL: www.cytec.com
from the first half of 2004. Including restructuring charges, net income for the six-month period was CHF146 million, down from CHF201 million for the comparable period in 2004. R&D investment remained at 4.1% of sales. Sales prices for 1H 2005 were 2% higher than the previous year and were continually increased throughout the period. Volumes were up 7% over the first half of 2004. In local currencies, sales in Europe were up 14%, sales in the Americas increased 1% and in Asia Pacific, 10%. Growth in China and India was particularly strong. Demand in some customer industries, notably personal care and packaging, was strong, while in others, like the automotive industry, demand was lower than the first half of 2004. The company reports that its Project Shape costcutting initiative is on track, with savings of approximately CHF20 million realized in the first half of 2005. Ciba is accelerating and expanding the project which will increase the expected savings for 2005 to CHF60 million, from the CHF35 million previously forecasted, with 600 positions in total reduced during the year. Overall, annualized savings from Project Shape will increase to CHF180 million by 2007. In 2Q 2005, Ciba achieved sales of CHF1.858 billion, an increase of 8% in local currencies and 7% in Swiss francs on 2Q 2004 levels, with both sales prices and increased volumes contributing. Compared with 1Q 2005, sales increased 4% signalling further improvements, the company says. Net income for the second quarter, including restructuring, was CHF79 million compared to CHF99 million in 2Q 2004. For the Plastic Additives segment, six-month sales of CHF936 million were on a par with the high levels reached in 1H 2004, Ciba says. Strong sales price increases were achieved during the period, offsetting raw material cost increases and lower volumes. Production levels were reduced in the second quarter to limit inventory build ups. Operating income before restructuring charges was CHF121 million, up 11% in Swiss francs. As part of its continued expansion in Asia, Ciba has announced an investment in a new production facility for plastic additives in Asia Pacific “in the next few
8
October 2005
months”, to benefit from the anticipated growth in plastics manufacturing in Asia and the Middle East. Contact: Ciba Specialty Chemicals, Klybeckstrasse 141, CH-4002 Basel, Switzerland; tel: +41-61-636-4444; fax: +4161-636-3019; URL: www.cibasc.com
Acquisition boosts Cytec’s second quarter results Cytec Industries posted net earnings for 2Q 2005 of US$11.9 million on net sales of $813 million. Excluding special items, quarterly net earnings were $43.3 million. For the comparable period of 2004, net earnings were $31.2 million ($33.6 million excluding special items) on net sales of $422 million. The 93% increase in quarterly sales is primarily attributable to the acquisition of the Surface Specialties business. Net earnings, including special items, for the six months ended 30 June 2005 were $5.3 million on sales of $1,377 million. Net earnings for the first half of 2004 were $64.4 million on sales of $837 million. Cytec Performance Specialties segment, which includes the company’s polymer additives product lines, achieved a 13% increase in 2Q sales to $187.5 million. Selling prices were up 6%, selling volumes increased 4% and exchange added 3% to sales, says David Lilley, chairman, president and CEO. The selling price increases were across all product lines, helping to compensate for much higher raw material and energy costs. The slowdown in industrial demand, principally in Europe and in Asia, experienced in the latter part of the first quarter continued, and this impacted polymer additives, which experienced lower volumes. The $6.0 million increase in operating earnings to $17 million was primarily due to higher selling volumes and prices more than offsetting raw material cost increases. For the year as a whole, Lilley expects the segment to post a 5–10% increase in sales. Contact: Cytec Industries Inc, 5 Garret Mountain Plaza, West Paterson, NJ 07424, USA; tel: +1-973-357-3100; fax: +1-973-3573060; URL: www.cytec.com