CYTEC FOURTH QUARTER EARNINGS UP 25%; FULL YEAR EARNINGS INCREASE 71%.WEST PATERSON West Paterson (păt`ərsən), borough (1990 pop. 10,982), Passaic co., NE N.J., a suburb of Paterson; inc. 1914. Electric, electronic, and photographic products are made in the borough. , N.J.--(BUSINESS WIRE)--January 29, 1996--Cytec Industries Inc. (NYSE NYSE See: New York Stock Exchange :CYT) announced today that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter and full year ended December December: see month. 31, 1995 were $296 million and $1,260 million, respectively, an increase of 3% and 14% over the corresponding periods of 1994. Net earnings available for common stockholders for the fourth quarter and full year of 1995 were $19 million and $76 million, respectively, compared to $15 million and $41 million for the like periods of 1994. Fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings per common share for the fourth quarter and full year of 1995 were $1.11 and $4.30, an increase of 25% and 71% over the like periods of 1994. Included in fully diluted earnings per common share for the fourth quarter 1995 is a decrease of $195 million or $10.85 fully diluted earnings per common share which was recorded upon the completion of the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of the Series B Cumulative Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . This represents the excess of the repurchase price of the Series A and Series B preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. over the related book value. The full year impact is a decrease of $10.29 fully diluted earnings per common share. Also included in results for the fourth quarter of 1995 is a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of $193 million or $10.73 fully diluted earnings per common share resulting from the partial reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of the previously established valuation allowance against net domestic deferred income tax assets. The amount of this reversal represents the Company's best estimate of the tax benefits which, more likely than not, will be realized in future periods. The full year impact of this reversal on fully diluted earnings per common share is an increase of $10.17. Excluding both the impact of the excess of the repurchase price of the preferred stock over the related book value and the benefit of the reversal of the tax valuation allowance, fourth quarter and full year net earnings available to common stockholders were $22 million or $1.23 fully diluted earnings per common share and $78 million or $4.42 fully diluted earnings per common share, respectively. In announcing these results, Darryl Darryl is a common English name from Old English and Old French origin, generally used for males, but also can be the name of a female. It was used since the time of the Norman Saxon invasion of England. D. Fry, Chairman, President and Chief Executive Officer, commented: "The sales gain for the year came from growth through differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: products in most of our businesses. Our strategy of achieving a better balance in our global sales has been successful as our international sales have shown significant improvement over 1994. Our fourth quarter sales growth was impacted by what we believe to be certain customers correcting for high inventory levels and a slower growth rate in the U.S. economy. In addition, sharply reduced fiber exports to China also affected our sales growth for the quarter. "Acrylonitrile acrylonitrile /ac·ry·lo·ni·trile/ (ak?ri-lo-ni´tril) a colorless halogenated hydrocarbon used in the making of plastics and as a pesticide; its vapors are irritant to the respiratory tract and eyes, may cause systemic poisoning, and are sales increased in the fourth quarter over the corresponding period of 1994. This was due to shipments from the expanded facility which started up in the second quarter of 1995 and higher selling prices. Selling prices declined during the fourth quarter as has the purchase price of propylene propylene /pro·pyl·ene/ (pro´pi-len) a gaseous hydrocarbon, CH3CHdbondCH2. propylene glycol a colorless viscous liquid used as a humectant and solvent in pharmaceutical preparations. , a key feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing in producing acrylonitrile. The plant ran well during the quarter although parts of the facility were down during the current month for operational issues related to the expanded facility. "Methanol methanol, methyl alcohol, or wood alcohol, CH3OH, a colorless, flammable liquid that is miscible with water in all proportions. Methanol is a monohydric alcohol. It melts at −97. selling prices were much lower than during the fourth quarter of 1994 contributing to the lower sales growth. The methanol plant will be down for the entire month of January January: see month. due to low selling prices coupled with high natural gas costs, the key feedstock for methanol. Preliminary plans are to bring the plant up in early February February: see month. . "Overall, selling price increases for the fourth quarter have followed the pattern for the first three quarters of 1995. Increases have occurred in some product lines while in others, competitive pressures have prevented this. Continuing the trend we noticed in the third quarter, certain raw material costs have started to decline and we expect this trend to continue into the first quarter of 1996." J.P. Cronin Cronin is a surname, and may refer to
v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. dividends of $1.2 million. The reduced dividends offset in part by lower interest income and higher interest expense from these transactions, as well as the reduced fully diluted common shares outstanding, had a positive impact of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.12 for the fourth quarter and $0.15 for the full year on fully diluted earnings per common share." Fry continued, "Much has been accomplished in 1995. Our primary goals for the year were respectable top-line growth, margin improvement and the repurchase of the Series A and B Preferred Stock all of which we have accomplished. Much more must be done to (more) achieve our goal of becoming a premier specialty chemical A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. company by 1999. The people of Cytec are focused and committed to achieving this goal." Company Profile Cytec Industries Cytec Industries is a specialty chemicals and materials technology company with pro-forma sales in 2004, including the Surface Specialties acquisition, of approximately $3.0 billion. Cytec is a result of its spin-off from American Cyanamid Company. Inc. is a vertically integrated industrial chemical company which focuses on value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. products. The Company develops, manufactures and markets specialty chemicals, specialty materials and building block chemicals serving a broad group of end users, including the water treatment, paper, mining, coatings, plastics, aerospace, textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר . -0-
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT SHARE DATA)
Three Months Ended Years Ended
December 31, December 31,
1995 1994 1995 1994
Net sales $296.1 $288.0 +3% $1,260.1 $1,101.3 +14%
Expenses:
Manufacturing
cost of sales 207.8 202.0 912.2 817.9
Selling and
technical
services 34.9 34.3 135.9 131.0
Research and
process
development 10.5 10.1 44.2 40.0
Administrative
and general 11.2 11.3 45.1 43.9
264.4 257.7 1,137.4 1,032.8
Earnings from operations 31.7 30.3 122.7 68.5 Interest and other income (expense), net 3.8 4.2 10.4 12.2 Interest expense 0.9 - 1.0 0.1 Earnings before income taxes 34.6 34.5 132.1 80.6 Income tax (benefit) provision (178.1) 14.8 (136.2) 34.6 Earnings before earnings of associated companies 212.7 19.7 268.3 46.0 Equity in net earnings (loss) of associated companies 2.4 (0.6) 13.9 10.1 Net earnings 215.1 19.1 282.2 56.1 Dividends on preferred stock 0.6 3.7 10.7 14.6 Excess of repurchase price over related book value of Series A Stock and Series B Stock 195.2 - 195.2 - Net earnings available for common stockholders $19.3 $15.4 $76.3 $41.5
Earnings per common share
Primary $1.22 $1.15 $5.40 $3.15
Fully diluted $1.11 $0.89 +25% $4.30 $2.51 +71%
Weighted average shares outstanding (including common stock equivalents) used in calculating earnings per common share
Primary 15,780,341 13,452,233 14,122,690 13,150,158
Fully
Diluted 17,983,702 19,038,123 18,967,895 19,038,700
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CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, EXCEPT SHARE DATA)
December 31, December 31,
1995 1994
ASSETS
Current assets
Cash and cash equivalents $12.0 $97.7
Accounts receivable, less
allowance for doubtful accounts
of $11.6 in 1995 and 1994 216.8 221.2
Inventories 88.1 74.5
Deferred income taxes 74.5 24.9
Other current assets 12.6 20.7
Total current assets 404.0 439.0
Investments and advances
Equity in net assets of and
advances to associated
companies 155.1 137.6
Other investments and advances 0.1 11.5
Total investments and advances 155.2 149.1
Plants, equipment and
facilities, at cost 1,317.2 1,247.5
Less: accumulated depreciation (711.5) (660.8)
Net plant investment 605.7 586.7
Intangibles resulting from
business acquisitions, net of
accumulated amortization 18.0 18.5
Deferred income taxes 107.1 -
Other assets 3.8 6.1
$1,293.8 $1,199.4
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued expenses $316.6 $313.7
Income taxes payable 1.1 6.4
Total current liabilities 317.7 320.1
Long-term debt 66.0 -
Deferred income taxes - 20.9
Other noncurrent liabilities 567.2 575.2
Redeemable preferred stock
(Series A and B) at
redemption value - 199.9
Stockholders' equity Preferred stock (Series C) 4,000 shares outstanding at liquidation value of $25 per share 0.1 0.1 Common stock, $.01 par value per share, 75,000,000 shares authorized, issued - 16,684,881 in 1995 and 13,134,459 in 1994 0.2 0.1 Additional paid-in capital 222.6 34.2 Retained earnings 117.7 41.4 Unearned compensation (2.6) (4.1) Additional minimum pension liability (5.4) - Accumulated translation adjustments 10.4 11.7 Treasury stock, 6,917 shares at cost (0.1) (0.1)
Total stockholders' equity 342.9 83.3
$1,293.8 $1,199.4
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CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS)
Years Ended December 31,
1995 1994
Cash flows provided by (used for)
operating activities
Net earnings $282.2 $56.1
Noncash items included in earnings:
Equity in undistributed earnings
of associated companies (17.2) (9.9)
Depreciation 83.0 78.1
Amortization 6.9 7.9
Deferred income taxes (181.6) (7.9)
Other - (1.2)
Changes in operating assets and
liabilities:
Accounts receivable 6.3 (18.7)
Inventories (12.4) 0.5
Accounts payable and accrued expenses (4.6) 49.3
Income taxes payable (4.2) 5.8
Other assets 11.1 4.4
Other liabilities (8.7) (1.9)
Net cash provided by operating activities 160.8 162.5
Cash flows provided by (used for)
investing activities
Additions to plants, equipment
and facilities (97.2) (116.1)
Proceeds from dispositions of
business and sale of assets - 31.1
Change in investments and advances 11.4 (11.2)
Net cash used for investing activities (85.8) (96.2)
Cash flows provided by (used for)
financing activities
Purchase of treasury stock - (0.1)
Preferred stock dividend payments (14.4) (11.5)
Long-term debt:
Additions 101.0 -
Reductions (35.0) -
Proceeds from exercise of stock options 1.4 -
Proceeds from stock offering, net of
discount and expenses 181.1 -
Purchase of Series A preferred stock (90.0) -
Purchase of Series B preferred stock (305.1) -
Net cash used for financing activities (161.0) (11.6) Effect of exchange rate changes on cash 0.3 (0.5) Increase (decrease) in cash and cash equivalents (85.7) 54.2 Cash and cash equivalents, beginning of year 97.7 43.5 Cash and cash equivalents, end of year $12.0 $97.7 CONTACT: Kumar Kumar (from Sanskrit meaning prince or an (unmarried) youth) is an Indian title, given name or family name. As a title it can mean son of a Rājā, prince, or heir apparent and enters in princely compound titles. Shah Shah is a Persian term for a monarch (ruler) that has been adopted in many other languages. This term is a Post Islamic Revolution term for monarchs in Iran which is replaced by valie faghih or Supreme Leader. (analyst contact) (201) 357-3298 George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Yuro (201) 357-3319 |
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