Cytec Third Quarter Earnings Increase 43 Percent.

WEST PATERSON, N.J.--(BUSINESS WIRE)--Oct. 15, 1996--Cytec Industries Inc. (NYSE: CYT) announced today that net earnings available for common stockholders for the third quarter of 1996 were $26 million or $0.53 fully diluted earnings per common share on net sales of $322 million. This compares to net earnings available for common stockholders of $20 million after preferred stock dividends of $3 million, or $0.37 fully diluted earnings per common share, on net sales of $320 million for the comparable period of 1995. Per share amounts reflect the 3 for 1 stock split paid on July 23, 1996 in the form of a dividend to stockholders of record as of the close of business July 2, 1996.

In announcing these results, Darryl D. Fry, Chairman, President and Chief Executive Officer, commented: "Several factors contributed to the increase in earnings available for common stockholders, many of which we have discussed in prior quarters. Those factors are an improved product mix, the effect of cost reduction programs, a lower effective tax rate and the impact of the elimination of preferred stock dividends resulting from last year's buyback of the Series A and B preferred stock. In addition, raw material costs with the exception of natural gas were generally lower than the prior year period. Natural gas purchase costs have come down from those experienced in the first half of 1996 although they are still well above 1995 purchase costs. Lastly, fully diluted earnings per share were favorably affected by the reduction of shares outstanding as a result of the buyback of the preferred stock and our stock repurchase program."

Fry continued, "Net sales increased in the majority of our Specialty Chemicals and Specialty Materials product lines with the major exception being in certain marginal products which we are exiting. Selling prices in the Specialty Chemicals and Specialty Materials product lines remained essentially flat with the exception of export fiber selling prices which are still below the prior year period. Net sales for Building Blocks were primarily affected by lower acrylonitrile sales due to reduced selling prices."

Mr. Fry added, "The process of exploring strategic alternatives for our Acrylic Fibers and Alum product lines is moving ahead and we expect to make a decision on both before year end. Our plans for the next phase of improving our cost structure are firming up and we will start implementation early next year. Our results to date reflect improvements in many facets of our business and through the efforts of the resourceful people of Cytec this trend is expected to continue."

Nine Month Results

Net earnings available for common stockholders for the nine months ended September 30, 1996 were $74 million or $1.47 fully diluted earnings per common share on net sales of $944 million. This compares to net earnings available for common stockholders of $57 million after preferred stock dividends of $10.1 million, or $1.07 fully diluted earnings per common share on net sales of $964 million for the comparable period of 1995.

Company Profile

Cytec Industries Inc. is a vertically integrated industrial chemical company which focuses on value-added specialty 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 and automotive industries. -0-

               CYTEC INDUSTRIES INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME
                           (UNAUDITED)
      (Millions of dollars, except share and per share amounts)

                        Three Months Ended     Nine Months Ended
                          September 30,         September 30,
                      1996           1995     1996         1995
Net sales            $321.7         $320.3   $944.3       $964.0
Manufacturing cost
 of sales             229.7          234.9    673.7        704.4
Selling and technical
 services              35.1           33.0    104.9        101.0
Research and process
 development            9.5           11.7     29.7         33.7
Administrative and
 general               11.0           11.2     33.1         33.9

Earnings from
 operations            36.4           29.5    102.9         91.0

Interest and
 other income
 (expense), net         2.1            2.6      5.9          6.5
Interest expense        0.8            0.1      3.0          0.1

Earnings before income
 taxes                 37.7           32.0    105.8         97.4

Income tax provision   15.5           13.7     43.3         41.9

Earnings before
 earnings of
 associated companies  22.2           18.3     62.5         55.5

Equity in net
 earnings of
 associated companies   3.7            4.1     11.4         11.6

Net earnings           25.9           22.4     73.9         67.1

Dividends on preferred
  stock                 0.0            2.8      0.0         10.1

Net earnings available
 for common
 stockholders         $25.9          $19.6    $73.9        $57.0

Earnings per common
 share(a)
  Primary             $0.53          $0.48    $1.48        $1.40
  Fully diluted       $0.53 +43%     $0.37    $1.47 +37%   $1.07

Weighted average shares
 outstanding (including
 common stock equivalents)
 used in calculating
 earnings per common shar(a)

Primary          49,224,000   41,089,000  50,061,000  40,696,000
Fully diluted    49,379,000   57,868,000  50,280,000  57,772,000

(a) Earnings per common share and weighted average shares
outstanding reflect the 3 for 1 stock split paid on July 23, 1996 in
the form of a dividend to stockholders of record as of the close of
business July 2, 1996.

CONTACT: Kumar Shah (analyst contact)

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or

George Yuro

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