Cytec Adopts Statement of Financial Acctg Standards No. 142 and Certain Transition Provisions of Statement of Financial Acctg Standards No. 141 of the Financial Acctg Stds Board.Business Editors 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)--Feb. 22, 2002 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. (NYSE NYSE See: New York Stock Exchange :CYT) announced today that it has adopted Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ," (SFAS 142) and certain transition provisions of SFAS No. 141, "Business Combinations," (SFAS 141) effective January January: see month. 1, 2002. Under SFAS 142, intangible assets with "determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. " useful lives continue to be amortized over their respective estimated useful lives. Goodwill and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. with "indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those " useful lives are not amortized, but instead are reviewed for impairments at least annually and written-down only in the periods in which it is determined that the recorded value is greater than the fair value. Among other things, SFAS 141 specifies the criteria criteria (krītēr´ē  ),n. intangible assets must meet in order to be recognized apart from goodwill. Application of these standards required that Cytec assess its recorded intangibles. Effective January 1, 2002, the Company reclassified to goodwill those intangibles which no longer met the criteria for recognition apart from goodwill. Goodwill and intangible assets have been amortized through December December: see month. 31, 2001 in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the appropriate pre-SFAS 141 and 142 accounting literature. Overall, the new standards will have the impact of reducing future amortization expense from $12.8 million for the year ended December 31, 2001 to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.1 million for the year ended December 31, 2002. Although further evaluation is still needed to complete the transitional goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. test provisions of SFAS 142, the Company does not currently believe that adoption of the new standards will result in a material charge to earnings in 2002. No assurances can be provided as to the results of any future periodic impairment reviews. The attached historical financial information has been provided in order to facilitate understanding of the implementation of these standards on Cytec's past performance and for analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. and comparative purposes. Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and Cautionary Statements Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Industries is a specialty chemicals 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. and materials technology company with sales in 2001 of $1.4 billion. Its growth strategies are based on developing technologically advanced customer solutions for global markets including: aerospace, plastics, industrial coatings An industrial coating is a paint or coating defined by its protective, rather than its aesthetic properties, although it can provide both. The most common use of industrial coatings is for corrosion control of steel or concrete. , mining, and water treatment.
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
SEGMENT ANALYSIS
ANNUAL AMORTIZATION OF ACQUISITION INTANGIBLES
BY BUSINESS SEGMENT
(Millions of dollars)
2000 2001 2002
Actual Actual Outlook
------ ------ -------
Water and Industrial Process Chemicals $ 1.3 $ 1.5 $ 0.4
Performance Products 2.8 2.8 1.6
Specialty Materials 8.3 8.5 1.1
Building Block Chemicals - - -
------ ------ -------
Total $ 12.4 $ 12.8 $ 3.1
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
SUMMARIZED FINANCIAL INFORMATION
(Millions of dollars, except share and per share amounts)
Year Ended Year Ended
December 31, 2001 December 31, 2000
---------------------- ---------------------
Reported Adjusted(1) Reported Adjusted(1)
-------- ----------- -------- -----------
Net sales $1,387.1 $1,387.1 $1,492.5 $1,492.5
Amortization of
acquisition
intangibles (2) 12.8 3.1 12.4 3.0
Earnings from operations 112.7 122.4 176.6 186.0
Earnings before
income taxes and
extraordinary item 101.1 110.8 271.1 280.5
Earnings before
extraordinary item 66.2 72.6 177.6 183.8
Net earnings 71.1 77.5 177.6 183.8
Earnings before
extraordinary item
per common share
Basic $ 1.65 $ 1.80 $ 4.34 $ 4.49
Diluted $ 1.59 $ 1.74 $ 4.15 $ 4.30
Earnings per common
share
Basic $ 1.77 $ 1.93 $ 4.34 $ 4.49
Diluted $ 1.71 $ 1.86 $ 4.15 $ 4.30
(1) Adjusted as if SFAS 141 and 142 had been in effect from the
beginning of the relevant period.
(2) Due to rounding the sum of the quarters may not equal the full
year amounts
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
SUMMARIZED FINANCIAL INFORMATION
(Millions of dollars, except share and per share amounts)
Three Months Ended Three Months Ended
March 31, 2001 March 31, 2000
--------------------- ----------------------
Reported Adjusted(1) Reported Adjusted(1)
-------- ----------- -------- -----------
Net sales $ 376.1 $ 376.1 $ 368.8 $ 368.8
Amortization of
acquisition
intangibles (2) 3.1 0.7 3.1 0.7
Earnings from operations 31.0 33.4 45.7 48.0
Earnings before income
taxes 26.3 28.7 49.0 51.3
Net earnings 17.2 18.8 32.1 33.6
Earnings per common
share
Basic $ 0.43 $ 0.46 $ 0.77 $ 0.81
Diluted $ 0.41 $ 0.44 $ 0.74 $ 0.78
Three Months Ended Three Months Ended
June 30, 2001 June 30, 2000
--------------------- -----------------------
Reported Adjusted(1) Reported Adjusted (1)
--------------------- -----------------------
Net sales $ 354.1 $ 354.1 $ 389.0 $ 389.0
Amortization of
acquisition
intangibles(2) 3.2 0.8 3.1 0.7
Earnings from operations 33.2 35.6 49.5 51.8
Earnings before income
taxes 31.9 34.3 62.1 64.4
Net earnings 20.9 22.5 40.7 42.2
Earnings per common
share
Basic $ 0.52 $ 0.56 $ 0.99 $ 1.03
Diluted $ 0.50 $ 0.54 $ 0.95 $ 0.98
Three Months Ended Three Months Ended
September 30, 2001 September 30, 2000
--------------------- ----------------------
Reported Adjusted(1) Reported Adjusted(1)
-------- ----------- -------- -----------
Net sales $ 342.1 $ 342.1 $ 376.2 $ 376.2
Amortization of
acquisition
intangibles (2) 3.2 0.8 3.1 0.7
Earnings from operations 34.7 37.2 46.4 48.8
Earnings before income
taxes and extraordinary
item 32.5 34.9 42.4 44.8
Earnings before
extraordinary item 21.3 22.9 27.8 29.4
Net earnings 26.2 27.8 27.8 29.4
Earnings before
extraordinary item per
common share
Basic $ 0.53 $ 0.57 $ 0.68 $ 0.72
Diluted $ 0.51 $ 0.55 $ 0.65 $ 0.68
Earnings per common
share
Basic $ 0.65 $ 0.69 $ 0.68 $ 0.72
Diluted $ 0.63 $ 0.67 $ 0.65 $ 0.68
Three Months Ended Three Months Ended
December 31, 2001 December 31, 2000
--------------------- ----------------------
Reported Adjusted(1) Reported Adjusted(1)
-------- ----------- -------- -----------
Net sales $ 314.8 $ 314.8 $ 358.4 $ 358.4
Amortization of
acquisition
intangibles (2) 3.2 0.8 3.2 0.7
Earnings from operations 13.8 16.2 35.0 37.4
Earnings before income
taxes 10.4 12.8 117.5 120.0
Net earnings 6.8 8.4 77.0 78.6
Earnings per common
share
Basic $ 0.17 $ 0.21 $ 1.91 $ 1.95
Diluted $ 0.17 $ 0.21 $ 1.82 $ 1.85
(1) Adjusted as if SFAS 141 and 142 had been in effect from the
beginning of the relevant period.
(2) Due to rounding the change in earnings from operations and
earnings before income taxes may not equal the change in
amortization of acquisition intangibles
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
EARNINGS FROM OPERATIONS BY BUSINESS SEGMENT
(Millions of dollars)
Year Ended
December 31,
-----------------------------
2001
-----------------------------
Reported Adjusted(1) Change
-----------------------------
Earnings (loss) from
operations(2)
Water and Industrial Process
Chemicals $ 25.7 $ 26.8 $ 1.1
Performance Products 16.3 17.5 1.2
Specialty Materials 95.9 103.3 7.4
Building Block Chemicals (18.7) (18.7) -
------- ------- -------
Earnings from segments 119.2 128.9 9.7
Corporate and Unallocated (6.5) (6.5) -
------- ------- -------
Total consolidated earnings
from operations $ 112.7 $ 122.4 $ 9.7
======= ======= =======
Year Ended
December 31,
-----------------------------
2000
-----------------------------
Reported Adjusted(1) Change
-----------------------------
Earnings (loss) from
operations (2)
Water and Industrial Process
Chemicals $ 40.2 $ 41.1 $ 0.9
Performance Products 56.8 58.0 1.2
Specialty Materials 85.9 93.2 7.3
Building Block Chemicals 12.7 12.7 -
------- ------- -------
Earnings from segments 195.6 205.0 9.4
Corporate and Unallocated (19.0) (19.0) -
------- ------- -------
Total consolidated earnings
from operations $ 176.6 $ 186.0 $ 9.4
======= ======= =======
(1) Adjusted as if SFAS 141 and 142 had been in effect from the
beginning of the relevant period.
(2) Due to rounding the sum of the quarters may not equal the full
year amounts
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
EARNINGS FROM OPERATIONS BY BUSINESS SEGMENT
(Millions of dollars)
Three Months Ended Three Months Ended
March 31, March 31,
--------------------------- ---------------------------
2001 2000
--------------------------- ---------------------------
Reported Adjusted(1) Change Reported Adjusted(1) Change
-------- ----------- ------ -------- ----------- ------
Earnings (loss)
from operations
Water and
Industrial
Process
Chemicals $ 8.2 $ 8.5 $ 0.3 $ 10.0 $ 10.2 $ 0.2
Performance
Products 3.9 4.2 0.3 15.0 15.3 0.3
Specialty
Materials 28.2 30.0 1.8 18.5 20.3 1.8
Building
Block
Chemicals (8.3) (8.3) - 4.0 4.0 -
------ ------ ------ ------ ------ ------
Earnings from
segments 32.0 34.4 2.4 47.5 49.8 2.3
Corporate and
Unallocated (1.0) (1.0) - (1.8) (1.8) -
------ ------ ------ ------ ------ ------
Total
consolidated
earnings
from
operations $ 31.0 $ 33.4 $ 2.4 $ 45.7 $ 48.0 $ 2.3
====== ====== ====== ====== ====== ======
Three Months Ended Three Months Ended
June 30, June 30,
-------------------------- ---------------------------
2001 2000
--------------------------- ---------------------------
Reported Adjusted(1) Change Reported Adjusted(1) Change
-------- ----------- ------ -------- ----------- ------
Earnings (loss)
from
operations
Water and
Industrial
Process
Chemicals $ 6.7 $ 7.0 $ 0.3 $ 11.2 $ 11.4 $ 0.2
Performance
Products 6.3 6.6 0.3 16.0 16.3 0.3
Specialty
Materials 30.2 32.0 1.8 23.6 25.4 1.8
Building Block
Chemicals (2.9) (2.9) - (0.1) (0.1) -
------ ------ ------ ------ ------ ------
Earnings from
segments 40.3 42.7 2.4 50.7 53.0 2.3
Corporate and
Unallocated (7.1) (7.1) - (1.2) (1.2) -
------ ------ ------ ------ ------ ------
Total
consolidated
earnings from
operations $ 33.2 $ 35.6 $ 2.4 $ 49.5 $ 51.8 $ 2.3
====== ====== ====== ====== ====== ======
Three Months Ended Three Months Ended
September 30, September 30,
--------------------------- ---------------------------
2001 2000
--------------------------- ---------------------------
Reported Adjusted(1) Change Reported Adjusted(1) Change
-------- ----------- ------ -------- ----------- ------
Earnings
(loss) from
operations
Water and
Industrial
Process
Chemicals $ 6.9 $ 7.2 $ 0.3 $ 10.0 $ 10.3 $ 0.3
Performance
Products 5.2 5.5 0.3 14.6 14.9 0.3
Specialty
Materials 24.1 26.0 1.9 21.4 23.2 1.8
Building Block
Chemicals (0.6) (0.6) - 0.9 0.9 -
------ ------ ------ ------ ------ ------
Earnings from
segments 35.6 38.1 2.5 46.9 49.3 2.4
Corporate and
Unallocated (0.9) (0.9) - (0.5) (0.5) -
------ ------ ------ ------ ------ ------
Total
consolidated
earnings
from
operations $ 34.7 $ 37.2 $ 2.5 $ 46.4 $ 48.8 $ 2.4
======= ====== ====== ====== ====== ======
Three Months Ended Three Months Ended
December 31, December 31,
--------------------------- ---------------------------
2001 2000
--------------------------- ---------------------------
Reported Adjusted(1) Change Reported Adjusted(1) Change
-------- ---------- ------ -------- ---------- ------
Earnings
(loss)
from
operations
Water and
Industrial
Process
Chemicals $ 3.9 $ 4.2 $ 0.3 $ 9.1 $ 9.4 $ 0.3
Performance
Products 0.9 1.2 0.3 11.1 11.4 0.3
Specialty
Materials 13.5 15.3 1.8 22.3 24.1 1.8
Building Block
Chemicals (6.9) (6.9) - 8.1 8.1 -
------ ------ ------ ------ ------ ------
Earnings
from
segments 11.4 13.8 2.4 50.6 53.0 2.4
Corporate
and
Unallocated 2.4 2.4 - (15.6) (15.6) -
------ ------ ------ ------ ------ ------
Total
consolidated
earnings
from
operations $ 13.8 $ 16.2 $ 2.4 $ 35.0 $ 37.4 $ 2.4
======== ====== ======= ====== ====== ======
(1) Adjusted as if SFAS 141 and 142 had been in effect from the
beginning of the relevant period.
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
Acquisition Intangibles, Net of Accumulated Amortization
By Business Segment
December 31, 2001
(Millions of dollars)
Identifiable
Goodwill Intangibles Total
Reported -------- ----------- ---------
--------
Water and Industrial
Process Chemicals $ 31.3 $ 3.8 $ 35.1
Performance Products 49.1 26.7 75.8
Specialty Materials 250.2 15.0 265.2
Building Block Chemicals - - -
-------- -------- ---------
Total $ 330.6 $ 45.5 $ 376.1
Identifiable
Goodwill Intangibles Total
Adjusted -------- ----------- ---------
--------
Water and Industrial
Process Chemicals $ 31.1 $ 4.0 $ 35.1
Performance Products 50.1 25.7 75.8
Specialty Materials 252.6 12.6 265.2
Building Block Chemicals - - -
-------- -------- ---------
Total $ 333.8 $ 42.3 $ 376.1
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