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Cytec reports increased second quarter sales and earnings
Additives for Polymers
$431 000 this year. The company reports that sales continued to grow significantly despite the shipping problem, which is not expected to be repeated. Gross revenues for 3Q 2004 are anticipated to exceed $9 million. Contact: TOR Minerals International, PO Box 2544, Corpus Christi, TX, 78403-2544, USA; tel: +1-361-882-5175; fax: +1-361-883-7619; e-mail: [email protected]; URL: www.hitox.com or www.torminerals.com
FINANCIALS Cytec reports increased second quarter sales and earnings For the second quarter of 2004, Cytec Industries posted net earnings of US$29.0 million, including special items, on net sales up 13% to $422 million. Excluding the special items, quarterly net earnings were $31.4 million. For the comparable period of 2003, net earnings were $25.4 million on net sales of $375 million. Acquisitions boosted 2Q sales by 6%, base sales volumes added 4% and increased selling prices 1%, with exchange rate changes accounting for the remainder of the 13% rise in quarterly sales. The company reports that manufacturing plants ran well to meet the higher demand levels but raw material and energy costs were well above the previous year’s quarter. For the six months to the end of June 2004, net earnings were $60.3 million on sales of $837 million, both up on the previous year. In the Performance Products segment, which includes Cytec’s polymer additive offerings, total 2Q sales increased about 16% to $143.3 million. Acquisitions added 10% to the sales growth, sales volumes 4% and exchange rate changes 2%. Selling prices were essentially flat. Selling volumes were up in all product lines, particularly coating and speciality additives and polymer additives, the company reports. Segment operating earnings improved significantly to $17 million for the second quarter, from $10.9 million for the same period in 2003, as the benefit of the acquisitions and higher base sales volumes plus improving manufacturing operations more than offset the effect of higher raw material and energy costs, Cytec says. 8
September 2004
Outlining full year expectations, David Lilley, chairman, president and CEO, says that sales growth approaching 15% is now forecast for Performance Products, up from previous estimates of 10% as a combined result of acquisitions, geographic expansion, new products, higher selling prices and improving demand. Operating earnings should increase approximately 40% despite the higher raw material costs. 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
Crompton’s sales climb 21% on the back of strong polymer additives growth Crompton Corp reported 2004 second quarter net earnings of US$1.1 million reversing the net loss of $9.1 million in the second quarter of 2003. Net earnings in 2Q 2004 included $7.7 million in charges. Sales of $646.7 million for 2Q 2004 were 21% above the same period last year with 8% attributable to the acquisition of the GE Specialty Chemical business last summer (ADPO, June 2003). Improved unit volumes boosted sales 9%, improved selling prices 2%, with the final 2% due to favourable foreign currency effects. First half 2004 net earnings of $62.0 million on net sales of $1.27 billion compared to a net loss of $3.3 million on sales of $1.06 billion in 2003. Despite a focus on “positive pricing actions” in 2004, Robert L. Wood, chairman, president and CEO, says that the surge in costs incurred for natural gas, crude, benzene, tin and soybean oil in the second quarter far outstripped the increases in product selling prices. In response, Crompton is intensifying pricing efforts and further reducing its administrative cost structure in order to restore historical margins. “We expect to implement restructuring actions later this quarter designed to yield annual pre-tax savings of at least $50 million with the benefit to be achieved in 2005. Based on these savings, we expect to incur a one-time restructuring charge that should not exceed $50 million. It is expected that the bulk of the savings will come from streamlining the organization and its work processes,” Wood says.
$431 000 this year. The company reports that sales continued to grow significantly despite the shipping problem, which is not expected to be repeated. Gross revenues for 3Q 2004 are anticipated to exceed $9 million. Contact: TOR Minerals International, PO Box 2544, Corpus Christi, TX, 78403-2544, USA; tel: +1-361-882-5175; fax: +1-361-883-7619; e-mail: [email protected]; URL: www.hitox.com or www.torminerals.com
FINANCIALS Cytec reports increased second quarter sales and earnings For the second quarter of 2004, Cytec Industries posted net earnings of US$29.0 million, including special items, on net sales up 13% to $422 million. Excluding the special items, quarterly net earnings were $31.4 million. For the comparable period of 2003, net earnings were $25.4 million on net sales of $375 million. Acquisitions boosted 2Q sales by 6%, base sales volumes added 4% and increased selling prices 1%, with exchange rate changes accounting for the remainder of the 13% rise in quarterly sales. The company reports that manufacturing plants ran well to meet the higher demand levels but raw material and energy costs were well above the previous year’s quarter. For the six months to the end of June 2004, net earnings were $60.3 million on sales of $837 million, both up on the previous year. In the Performance Products segment, which includes Cytec’s polymer additive offerings, total 2Q sales increased about 16% to $143.3 million. Acquisitions added 10% to the sales growth, sales volumes 4% and exchange rate changes 2%. Selling prices were essentially flat. Selling volumes were up in all product lines, particularly coating and speciality additives and polymer additives, the company reports. Segment operating earnings improved significantly to $17 million for the second quarter, from $10.9 million for the same period in 2003, as the benefit of the acquisitions and higher base sales volumes plus improving manufacturing operations more than offset the effect of higher raw material and energy costs, Cytec says. 8
September 2004
Outlining full year expectations, David Lilley, chairman, president and CEO, says that sales growth approaching 15% is now forecast for Performance Products, up from previous estimates of 10% as a combined result of acquisitions, geographic expansion, new products, higher selling prices and improving demand. Operating earnings should increase approximately 40% despite the higher raw material costs. 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
Crompton’s sales climb 21% on the back of strong polymer additives growth Crompton Corp reported 2004 second quarter net earnings of US$1.1 million reversing the net loss of $9.1 million in the second quarter of 2003. Net earnings in 2Q 2004 included $7.7 million in charges. Sales of $646.7 million for 2Q 2004 were 21% above the same period last year with 8% attributable to the acquisition of the GE Specialty Chemical business last summer (ADPO, June 2003). Improved unit volumes boosted sales 9%, improved selling prices 2%, with the final 2% due to favourable foreign currency effects. First half 2004 net earnings of $62.0 million on net sales of $1.27 billion compared to a net loss of $3.3 million on sales of $1.06 billion in 2003. Despite a focus on “positive pricing actions” in 2004, Robert L. Wood, chairman, president and CEO, says that the surge in costs incurred for natural gas, crude, benzene, tin and soybean oil in the second quarter far outstripped the increases in product selling prices. In response, Crompton is intensifying pricing efforts and further reducing its administrative cost structure in order to restore historical margins. “We expect to implement restructuring actions later this quarter designed to yield annual pre-tax savings of at least $50 million with the benefit to be achieved in 2005. Based on these savings, we expect to incur a one-time restructuring charge that should not exceed $50 million. It is expected that the bulk of the savings will come from streamlining the organization and its work processes,” Wood says.