Cytec Reports Fourth Quarter and Full Year EPS.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. -- 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 net earnings available to common stockholders for the fourth quarter of 2004 were $45.1 million or $1.09 per 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. share, on 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 of $451 million, including an after tax net gain of $17.1 million or $0.41 per diluted share related to foreign currency and interest rate hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. transactions associated with the anticipated acquisition of UCB's Surface Specialties business. Excluding this special item, net earnings available to common stockholders for the fourth quarter of 2004 were $28.0 or $0.68 per diluted share. Net earnings available to common stockholders for the comparable period of 2003 were $14.6 million, or $0.36 per diluted share, on net sales of $362 million. David Lilley David William Lilley (born 31 October 1977, in Bellshill) is a Scottish professional footballer currently playing for Scottish Premier League club Kilmarnock. Lilley, a defender began his career at Queen of the South and had spells with Aberdeen, Ross County (on loan) and , Chairman, President and Chief Executive Officer, said, "Overall, sales for the fourth quarter were up 25% compared to the prior year period. Sales volumes were up 16%, selling prices were up 7% and exchange rate changes added 2%. Raw material and energy costs, continuing their upward trend, were significantly higher and were well above the prior year period." Water and Industrial Process Chemicals Sales increased 14%; Operating Earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increase to $7 million In Water and Industrial Process Chemicals, sales volumes increased 11%, exchange rate changes benefited sales by 3% while selling prices were flat. Sales volumes were up in all product lines. The major contributors were sales of Water Treatment chemicals globally and Mining Chemicals, particularly in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , where high production rates continue at the major copper producers. The increase in operating earnings was the result of higher demand levels only partially offset by significantly higher raw material and energy costs. Performance Products Sales increased 12%; Operating Earnings increase to $11 million In Performance Products, sales volumes increased 9% with all product lines contributing as a result of improved demand and new business. Exchange rate changes increased sales 2% and selling prices were up 1%. Operating earnings improved significantly primarily due to the higher sales and improved manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. which more than offset the effect of higher raw material and energy costs. 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. Materials Sales increased 21% and Operating Earnings increase to $14 million In Specialty Materials, sales volumes were up 20%, selling prices were flat while exchange rate changes added 1%. The increase in selling volumes was across all sectors with the largest increases in the large commercial aircraft, rotorcraft ro·tor·craft n. An aircraft, especially a helicopter, that is kept partially or completely airborne by airfoils rotating around a vertical axis. , military and high performance automotive sectors. The increased operating earnings reflect the leverage impact of the higher sales volumes offset somewhat by increased manufacturing and commercial costs to service the higher demand levels as well as investments made on growth opportunities for this business. Building Block Chemicals Sales increased 84% and Operating Earnings increase to $8 million Building Block Chemicals sales volumes increased 33% while selling prices were up 49% and exchange rate changes added 2%. 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 volumes increased significantly although reflected in this is a large shipment that was scheduled for the end of September September: see month. that was moved to early October October: see month. due to transportation availability. In addition, our manufacturing facility ran well while fourth quarter 2003 acrylonitrile volumes were negatively impacted by production difficulties. Operating earnings improved versus the year ago period as the higher selling volumes and selling price increases more than offset the impact of the significantly higher raw material costs. Earnings in Associated Companies associated company associate n → Partnerfirma f associated company n → società collegata Sales and earnings of our associated company, CYRO Industries, were up from the year ago period as higher sales volumes and selling prices offset increased raw material costs. Special Item James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. P. Cronin Cronin is a surname, and may refer to
pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $26.8 million pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to foreign currency and interest rate hedging transactions for the anticipated acquisition of the Surface Specialties business of UCB UCB - University of California at Berkeley Group that we announced on October 1, 2004. As stated in prior communications, currency and interest rate derivatives An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate. The interest rate derivatives market is the largest derivatives market in the world. we entered into as a result of our hedging strategy for the anticipated acquisition requires mark to market accounting. Hence, one can expect volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in our earnings relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these hedges. While we recorded a gain in the fourth quarter of 2004, our outstanding hedges valued as of the close of business yesterday would produce a pre-tax tax loss of $50.4. So after taking into account the gains recorded in 2004 and the value of the outstanding hedges as of the close of business yesterday, the net loss position on our hedging transactions to date would be a pre-tax loss of $23.6 million. While any gains or losses on these transactions will be recorded through the income statement up to the date of the acquisition, economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: , one can view any hedge gains or losses as part of the transaction cost or debt issuance as the case may be. "In 2004, the hedging transactions are taxed at an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. U.S. rate of 36% while the rest of Cytec earnings were recorded at an annual effective tax rate of 21%. Hence, Cytec's reported effective tax rate for the fourth quarter and full year 2004 is 29% and 23%, respectively." Cash Flow Fourth quarter cash flow generated by operations was $83 million bringing the full year total to $167 million. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the quarter includes $19 million related to closing several currency hedges Currency hedge Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). that were entered into relative to the anticipated acquisition of the Surface Specialties business. Receivable dollars decreased as days outstanding were lower by about three from last quarter. Inventory dollars increased and days increased about three from last quarter as expected future product demand remains strong. Capital expenditures were $35 million in the quarter bringing the full year amount to $89 million. Several incremental expansion and cost reduction projects began in the quarter. Pending Acquisition Status Mr. Lilley Lilley is a surname, and may refer to:
In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.5 billion. The acquisition is subject to customary closing conditions including the approval of regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . We had set an ambitious closing deadline for the transaction and have received approval from the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community . However, we are still awaiting approval from the U.S. Federal Trade Commission (FTC FTC See Federal Trade Commission (FTC). ). The FTC has requested additional information on the transaction and we are hopeful the closing will occur at the end of February February: see month. , 2005." 2005 Outlook Mr. Lilley continued, "Our strong sales momentum continued through the fourth quarter of 2004 although raw material and energy costs also continued their upward trend. Costs for oil and natural gas have not subsided and many raw materials are in short supply. Our major supplier 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. recently announced a force majeure [French, A superior or irresistible power.] An event that is a result of the elements of nature, as opposed to one caused by human behavior. The term force majeure for equipment repairs and we are anticipating an allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 85% of our supply of propylene from this supplier for up to six months. We are reviewing the impact of this curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. and its potential effect on downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). products on Cytec although we do not expect a significant impact from this on our first quarter results. We are continuing our selling price initiatives but we are still catching up to the continuing upward trend of raw material costs. The outlook for global demand remains positive and our focus is on keeping our plants running efficiently to meet the market demand. "With the closing date of the pending acquisition moving later into the first quarter we will provide guidance for full year 2005 with our first quarter earnings release rather than at this point in time." Lilley continued, "We are entering 2005 with good top line momentum and are closely monitoring raw material availability and cost trends. We have a good business model today and look forward to the acquisition of the Surface Specialties business. We believe the addition of Surface Specialties will create even more opportunities to generate additional shareholder value." Full Year Results Net earnings available to common stockholders for the full year ended December December: see month. 31, 2004 were $116.2 million or $2.84 per diluted share on sales of $1,721 million. Included in full year earnings are the following special items: a pre-tax charge of $6.1 million ($4.8 million after tax) or $0.12 per diluted share in connection with the settlement of several environmental and toxic tort A toxic tort is a special type of personal injury lawsuit in which the plaintiff claims that exposure to a chemical caused the plaintiff's toxic injury or disease. Different types Toxic torts arise in different contexts. lawsuits, a pre-tax charge of $8.0 million ($6.2 million after tax or $0.15 per diluted share) relating to settlements of carbon fiber litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. matters, a pre-tax charge of $2.0 million ($1.6 million after tax or $0.04 per diluted share) relating to the settlement of disputed matters with the holder of the Company's Series C 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. , a charge to net earnings available to common stockholders of $9.9 million ($0.24 per diluted share) related to the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of the Company's Series C preferred stock, a $2.4 million tax credit, or $0.06 per diluted share, from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. outcome of a recently completed international tax audit and a net pre-tax gain of $26.8 million ($17.1 million after tax or $0.42 per diluted share) pertaining to hedging anticipatory transactions related to the expected purchase of UCB Groups Surface Specialty business. Excluding these items, net earnings available to common stockholders were $119.0 million or $2.91 per diluted share. Net earnings available to common stockholders for the full year ended December 31, 2003 were $77.4 million or $1.93 per diluted share on sales of $1,472 million, after a cumulative effect of a change in accounting principle of $13.6 million after tax, or $0.34 per diluted share, for the adoption of Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. ." Before the accounting change, net earnings available to common stockholders were $91.0 million or $2.27 per diluted share. Use of Non-GAAP Measures Management believes that net earnings available to common stockholders and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before special items, which are non-GAAP measurements, are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the Company's overall operating results in the period presented. Such non-GAAP measurements are not recognized 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 generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and should not be viewed as an alternative to GAAP measures of performance. A reconciliation of non-GAAP measurements to GAAP can be found at the end of this release. Investor Conference Call to be Held on January January: see month. 21, 2005, 11:00 A.M. EST EST electroshock therapy. EST abbr. electroshock therapy Cytec will host their fourth quarter earnings release conference call on January 21, 2005 at 11:00 a.m. EST. The conference call will also be simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics webcast for all investors from Cytec's website www.cytec.com. Select the Investor Relations Investor relations The process by which the corporation communicates with its investors. page to access the live conference call. A recording of the conference call may be accessed by telephone from 2:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on January 21, 2005 until February 11, 2005 at 11:00 p.m. EST by calling 888-203-1112 (U.S.) or 719-457-0820 (International) and entering access code 314079. The conference call recording will also be accessible on Cytec's website for 3 weeks after the conference call. 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 and materials technology company with sales in 2004 of $1.7 billion. Its growth strategies are based on developing technologically advanced customer solutions for global markets including: aerospace, coatings, mining, plastics and water treatment.
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions of dollars, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2004 2003 2004 2003
---------- ------- --------- ---------
Net sales $450.6 $361.9 $1,721.3 $1,471.8
Manufacturing cost of sales 350.9 279.0 1,311.1 1,114.9
Selling and technical services 36.0 34.2 139.8 126.9
Research and process development 10.6 9.9 40.0 35.2
Administrative and general 15.3 12.9 65.1 49.7
Amortization of acquisition
intangibles 1.4 1.4 5.6 4.0
---------- ------- --------- ---------
Earnings from operations 36.4 24.5 159.7 141.1
Other income (expense), net 29.5 (1.8) 16.8 (5.7)
Equity in earnings of associated
companies 2.2 1.9 5.2 7.2
Interest expense, net 4.4 4.3 17.4 16.2
---------- ------- --------- ---------
Earnings before income taxes and
cumulative effect of accounting
change 63.7 20.3 164.3 126.4
Income tax provision 18.6 5.7 38.2 35.4
---------- ------- --------- ---------
Earnings before cumulative
effect of accounting change 45.1 14.6 126.1 91.0
Cumulative effect of accounting
change, net of taxes of $7.3 - - - (13.6)
---------- ------- --------- ---------
Net earnings $45.1 $14.6 $126.1 $77.4
Premium paid to redeem preferred
stock - - 9.9 -
---------- ------- --------- ---------
Net earnings available to common
stockholders $45.1 $14.6 $116.2 $77.4
========== ======= ========= =========
Basic earnings per common share:
Net earnings available to
common stockholders before
accounting change $1.13 $0.37 $2.94 $2.34
Cumulative effect of
accounting change - - - (0.35)
---------- ------- --------- ---------
Net earnings available to
common stockholders $1.13 $0.37 $2.94 $1.99
========== ======= ========= =========
Diluted earnings per common
share:
Net earnings available to
common stockholders before
accounting change $1.09 $0.36 $2.84 $2.27
Cumulative effect of
accounting change - - - (0.34)
---------- ------- --------- ---------
Net earnings available to
common stockholders $1.09 $0.36 $2.84 $1.93
========== ======= ========= =========
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED NET SALES AND EARNINGS
FROM OPERATIONS BY BUSINESS SEGMENT
(Millions of dollars)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2004 2003 2004 2003
---------- ------- --------- ---------
Net sales
---------
Water and Industrial Process
Chemicals $109.7 $ 96.6 $ 409.1 $ 362.2
Performance Products
Sales to external customers 137.0 121.8 564.6 489.8
Intersegment sales 1.6 - 5.0 -
Specialty Materials 117.4 96.6 487.0 408.6
Building Block Chemicals
Sales to external customers 86.5 46.9 260.6 211.2
Intersegment sales 25.3 15.5 85.0 65.7
------ ------ -------- --------
Net sales from segments 477.5 377.4 1,811.3 1,537.5
Elimination of intersegment
revenue (26.9) (15.5) (90.0) (65.7)
------ ------ -------- --------
Total consolidated net sales $450.6 $361.9 $1,721.3 $1,471.8
----------------------------------------------------------------------
% of % of % of % of
sales sales sales sales
----- ----- ----- -----
Earnings (loss) from
operations
--------------------
Water and Industrial
Process Chemicals $ 7.0 6% $ 5.2 5% $ 21.2 5% $ 20.3 6%
Performance Products 11.0 8% 6.7 6% 57.2 10% 37.3 8%
Specialty Materials 14.2 12% 10.9 11% 84.2 17% 66.3 16%
Building Block
Chemicals 7.5 7% 2.6 4% 14.8 4% 20.3 7%
----- ----- ------ ------
Earnings from segments 39.7 8% 25.4 7% 177.4 10% 144.2 9%
Corporate and
Unallocated (3.3) (0.9) (17.7) (3.1)
----- ----- ------ ------
Total consolidated
earnings from
operations $36.4 8% $24.5 7% $159.7 9% $141.1 10%
----------------------------------------------------------------------
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of dollars, except share and per share amounts)
December 31, December 31,
2004 2003
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $323.8 $251.1
Accounts receivable, less allowance for
doubtful accounts of $6.7 and $7.6 in
2004 and 2003, respectively 248.2 217.1
Other accounts receivable 54.1 50.2
Inventories 222.1 176.0
Deferred income taxes 29.9 8.2
Other current assets 29.3 8.8
------------ ---------
Total current assets 907.4 711.4
Investment in associated companies 84.4 82.1
Plants, equipment and facilities, at cost 1,627.2 1,538.3
Less: accumulated depreciation (948.6) (875.4)
------------ ---------
Net plant investment 678.6 662.9
Acquisition intangibles, net of accumulated
amortization 66.8 69.9
Goodwill 342.4 339.7
Deferred income taxes 64.2 85.7
Other assets 81.2 74.2
------------ ---------
Total assets $2,225.0 $2,025.9
============ =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ - $9.3
Accounts payable 138.1 93.5
Accrued expense 178.1 170.5
Income taxes payable 58.9 63.2
------------ ---------
Total current liabilities 375.1 336.5
Long-term debt 419.1 416.2
Pension and other postretirement benefit
liabilities 348.3 345.0
Other noncurrent liabilities 174.5 172.8
Stockholders' equity
Preferred stock, 20,000,000 shares
authorized, issued and outstanding 0
and 4,000 shares Series C Cumulative at
2004 and 2003, respectively; $0.01 par
value at liquidation value of $25 per
share - 0.1
Common stock, $0.01 par value per share,
150,000,000 shares authorized, issued
48,132,640 shares 0.5 0.5
Additional paid-in capital 122.8 122.2
Retained earnings 1,083.1 982.9
Unearned compensation (3.1) (5.3)
Minimum pension liability adjustment (108.3) (96.8)
Unrealized (loss) gain on derivative
instruments (0.5) 0.3
Accumulated translation adjustments 74.5 38.0
Treasury stock, at cost, 8,297,863
shares in 2004 and 9,139,897 shares in
2003 (261.0) (286.5)
------------ ---------
Total stockholders' equity 908.0 755.4
------------ ---------
Total liabilities and stockholders' equity $2,225.0 $2,025.9
============ =========
CYTEC INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of dollars)
Twelve Months Ended,
December 31,
------------
2004 2003
---------- ----------
Cash flows provided by (used for) operating
activities
Net earnings $126.1 $77.4
Noncash items included in earnings:
Dividends from associated companies
less than earnings (2.6) (1.8)
Depreciation 86.6 85.9
Amortization 12.2 7.7
Deferred income taxes 16.4 14.5
Unrealized net Gain on derivative
instruments (7.9) -
Cumulative effect of change in
accounting principle, net of tax - 13.6
Other 0.7 (0.5)
Changes in operating assets and liabilities
Trade accounts receivable (24.1) 13.6
Other receivables (2.0) (7.9)
Inventories (38.7) (12.2)
Accounts payable 36.5 (13.4)
Accrued expenses (7.3) (8.6)
Income taxes payable 7.9 9.2
Other assets 0.4 (1.1)
Other liabilities (36.8) (44.0)
---------- ----------
Net cash flows provided by operating activities 167.4 132.4
---------- ----------
Cash flows provided by (used for) investing
activities
Additions to plants, equipment and
facilities (89.3) (93.8)
Proceeds received on sale of assets 0.7 0.1
Business acquisition costs (4.6)
Acquisitions of businesses, net of cash
received (101.6)
Advance payment received on land lease 9.1 -
---------- ----------
Net cash flows used for investing activities (84.1) (195.3)
---------- ----------
Cash flows provided by (used for) financing
activities
Proceeds from the exercise of stock options 24.6 14.5
Purchase of treasury stock (13.1) (27.7)
Change in short-term borrowings (9.3) (0.3)
Payments of long-term debt - (100.0)
Redemption of Series C preferred stock (10.0) -
Proceeds from long-term debt - 198.9
Proceeds from termination of interest rate
swap 2.9 -
Cash dividends (15.7) -
---------- ----------
Net cash flows (used for) provided by financing
activities (20.6) 85.4
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents 10.0 18.6
---------- ----------
Increase in cash and cash equivalents 72.7 41.1
Cash and cash equivalents, beginning of period 251.1 210.0
---------- ----------
Cash and cash equivalents, end of period $323.8 $251.1
========== ==========
Cytec Industries Inc.
Reconciliation of GAAP and Non-GAAP Measures
Management believes that net earnings available to common shareholders
and diluted earnings per share before special items, which are
non-GAAP measurements, are meaningful to investors because they
provide a view of the Company with respect to ongoing operating
results. Special items represent significant charges or credits that
are important to an understanding of the Company's overall operating
results in the periods presented. Such non-GAAP measurements are not
recognized in accordance with generally accepted accounting principles
(GAAP) and should not be viewed as an alternative to GAAP measures of
performance.
Three Months Ended December 31, 2004
----------------------------------------------------------------------
GAAP Net Earnings Available To Common Stockholders $45.1
Net gains on anticipatory currency and interest rate hedging
transactions (After tax) (17.1)
=======
Non-GAAP Net Earnings Available To Common Stockholders $28.0
=======
GAAP Diluted Earnings per Share $1.09
Net gains on anticipatory currency and interest rate hedging
transactions (After Tax) (0.41)
=======
Non-GAAP Diluted Earnings per Share $0.68
=======
Full Year Ended December 31, 2004
----------------------------------------------------------------------
GAAP Net Earnings Available To Common Stockholders $116.2
Add: Environment & Toxic Tort Settlement Charge (After Tax) 4.8
Premium Paid To Redeem Series C Preferred Stock 9.9
Settlement Of Disputed Matters With Series C Holders (After Tax) 1.6
Settlements Of Carbon Fiber Litigation Matters (After Tax) 6.2
Subtract: Reduction in income tax provision* (2.4)
Net gains on anticipatory currency and interest rate hedging
transactions (After tax) (17.1)
=======
Non-GAAP Net Earnings Available To Common Stockholders $119.0
=======
GAAP Diluted Earnings per Share $2.84
Add: Environment & Toxic Tort Settlement Charge (After Tax) 0.12
Premium Paid To Redeem Series C Preferred Stock 0.24
Settlement Of Disputed Matters With Series C Holders (After Tax) 0.04
Settlements Of Carbon Fiber Litigation Matters (After Tax) 0.15
Subtract: Reduction in income tax provision* (0.06)
Net gains on anticipatory currency and interest rate hedging
transactions (After Tax) (0.42)
=======
Non-GAAP Diluted Earnings per Share $2.91
=======
* Due to favorable completion of several years of tax audits in an
international jurisdiction.
Numbers may not add due to rounding.
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