Cytec Updates Second Quarter Outlook Including Charge for Special Item.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) reaffirmed its earnings per share outlook for the second quarter of 2004 of $0.60 to $0.65 per diluted share. Forecasted second quarter 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 for the 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. and Specialty Material segments are improving due to stronger than anticipated demand principally in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe. Offsetting this is a pretax charge of $6.1million ($0.12 per diluted share after tax) in connection with the settlement of several environmental and toxic tort lawsuits, all related to a single manufacturing site operated by the former American Cyanamid Company before 1963. Cytec was spun off from American Cyanamid Company in 1993. David Lilley, Chairman of the Board, President and Chief Executive Officer commented, "We are pleased with the continuing improvement in demand for many of our key markets. Our efforts of the past few years towards cost and productivity improvements are paying off as we leverage off the higher demand levels. Raw material costs remain high and are continuing an upward bias. We are aggressively pursuing price increases but will not be able to fully offset the higher costs in 2004. However, as circumstances developed in the second quarter concerning several related lawsuits, we felt it prudent to accelerate discussions regarding a potential settlement and to increase the value of such settlement. Notwithstanding our strong defenses, we came to the conclusion that settlement was the best option for Cytec and its shareholders. Future periods will be relieved of the 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. costs we have been incurring and importantly, we are able to put forward even more focus on the growth of Cytec in which we see many exciting opportunities for the near and longer term." Cytec will update its 2004 full year guidance in its second quarter earnings release scheduled for July 21, 2004. Forward-Looking and Cautionary Statements Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" 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 2003 of $1.5 billion. Its growth strategies are based on developing technologically advanced customer solutions for global markets including: aerospace, plastics, industrial coatings, mining, and water treatment. For more information about Cytec go to www.cytec.com or contact us at 5 Garret Mountain Plaza, West Paterson, NJ 07424. |
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