Cytec fourth quarter earnings up 46%; Full year earnings up 41%.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. , New Jersey--(BUSINESS WIRE)--January 27, 1997-- 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 for common stockholders for the fourth quarter and full year ended December December: see month. 31, 1996 were $26 million and $100 million, respectively, or $0.54 and $2.01 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. Net earnings available for common stockholders for the comparable periods of 1995 were $19 million and $76 million, respectively, or $0.37 and $1.43 fully diluted earnings per common share. 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 31, 1996 were $315 million and $1,260 million, respectively, which compares to $296 million and $1,260 million for the like periods of 1995. 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 and Chief Executive Officer, commented: "The increase in earnings available for common stockholders for the fourth quarter reflects an improved product mix in our specialty product lines, cost reduction programs, a lower effective tax rate, and the impact of the elimination of 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. dividends resulting from the late 1995 buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may of the Series A and B preferred stock. Raw material costs were significantly higher due to the spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. in natural gas costs. In addition, fully 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 were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by the reduction of shares outstanding as a result of the buyback of the preferred stock and our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. The net of these factors impacted each quarter leading up to our positive full year results." Fry continued, "We are quite pleased with the growth of our 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 product lines. Essentially all showed increases in net sales for the fourth quarter and full year. The fourth quarter specialty sales were up 10% over the prior year period. Selling prices in our specialty product lines increased slightly during the quarter with the exception of export fiber selling prices which were well below the prior year period. Building Block sales for the quarter and full year were lower than the prior year partly as a result of lower selling prices for 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 . 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 volumes for the year were down due to production difficulties experienced earlier in the year as were methanol selling prices although the impact due to lower selling prices was felt in the first half of the year. Overall, our international sales continued to grow and reached about 41% of total sales during the quarter and were 39% of total sales for the full year." Fry added, "Since the end of the third quarter, Cytec has announced the sale of the aluminum sulfate aluminum sulfate n. A white crystalline compound, Al2(SO4)3, used chiefly in papermaking, water purification, sanitation, and tanning. product line, the signing of a definitive agreement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of the acrylic fiber acrylic fiber n. Any of numerous synthetic fibers polymerized from acrylonitrile. acrylic fiber Any of numerous synthetic fibers polymerized from acrylonitrile. Noun 1. product line, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plans for two of our manufacturing sites and the election of 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 as President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and a member of the Board of Directors. These efforts are part of our resolve toward becoming a premier specialty chemical company. We continue to have a large list of opportunities before us which we believe will benefit our stockholders, customers and employees." Included in fully diluted earnings per share for the fourth quarter of 1995 is a decrease of $195 million or $3.62 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 A and B Preferred Stock. The full year impact is a decrease of $3.43 fully diluted earnings per common share. Also included in the results for the fourth quarter of 1995 is the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of $193 million or $3.58 fully diluted earnings per common share resulting from the partial reversal of the previously established valuation allowance against net domestic deferred income tax assets. The full year impact on fully diluted earnings per share is an increase of $3.39. 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 1995 net earnings available to common stockholders were $22 million or $0.41 fully diluted earnings per common share and $78 million or $1.47 fully diluted earnings per common share, respectively. -0- Company Profile Cytec Industries 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 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 Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר . -0-
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions of dollars, except share and per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1996 1995 1996 1995
Net sales $ 315.3 +6% $ 296.1 $1,259.6 0% $1,260.1
Manufacturing cost
of sales 224.5 207.8 898.1 912.2
Selling and
technical services 36.0 34.9 140.9 135.9
Research and
process development 10.6 10.5 40.2 44.2
Administrative
and general 11.1 11.2 44.3 45.1
Earnings from
operations 33.1 31.7 136.1 122.7
Interest and other
income (expense), net 4.1 3.8 10.0 10.4
Interest expense 0.9 0.9 4.0 1.0
Earnings before
income taxes 36.3 34.6 142.1 132.1
Income tax provision
(benefit) 13.5 (178.1) 56.9 (136.2)
Earnings before
earnings
of associated
companies 22.8 212.7 85.2 268.3
Equity in net
earnings
of associated
companies 3.3 2.4 14.9 13.9
Net earnings 26.1 215.1 100.1 282.2
Dividends on
preferred stock 0.0 0.6 0.0 10.7
Excess of repurchase
price over
related book
value of
Series A Stock
and Series B Stock 0.0 195.2 0.0 195.2
Net earnings
available for
common stockholders $26.1 $19.3 $100.1 $76.3
Earnings per
common share(a)
Primary $0.54 $0.41 $2.01 $1.80
Fully diluted $0.54 +46% $0.37 $2.01 +41% $1.43
Weighted average
shares outstanding
(including common stock
equivalents) used
in calculating
earnings per
common share(a)
Primary 48,529,000 47,341,000 49,678,000 42,368,000
Fully diluted 48,624,000 53,951,000 49,913,000 56,903,000
-0-
(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.
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of dollars, except share and per share amounts)
December 31,
1996 1995
ASSETS
Current assets
Cash and cash equivalents $ 20.4 $ 12.0
Accounts receivable,
less allowance for doubtful accounts
of $11.1 and $11.6 in 1996
and 1995, respectively 206.5 216.8
Inventories 105.6 88.1
Deferred income taxes 65.1 74.5
Other current assets 18.7 12.6
Total current assets 416.3 404.0
Equity in net assets of
and advances to associated companies 143.7 155.1
Plants, equipment and facilities, at cost 1,339.7 1,317.2
Less: accumulated depreciation (757.5) (711.5)
Net plant investment 582.2 605.7
Intangibles resulting from
business acquisitions, net of
accumulated amortization 17.1 18.0
Deferred income taxes 89.6 107.1
Other assets 12.2 3.9
$1,261.1 $1,293.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $101.3 $ 98.3
Accrued expenses 205.1 218.3
Income taxes payable 6.4 1.1
Total current liabilities 312.8 317.7
Long-term debt 89.0 66.0
Other noncurrent liabilities 544.9 567.2
Stockholders' equity
Preferred stock, 20,000,000 shares
authorized Series C, $.01 par value,
issued and outstanding - 4,000 shares
at liquidation value of $25 per share 0.1 0.1
Common stock, $.01 par value per share,
75,000,000 shares authorized,
issued 48,377,683 in 1996
and 50,040,809 in 1995 0.5 0.2
Additional paid-in capital 229.7 222.6
Retained earnings 217.9 117.8
Unearned compensation (2.4) (2.6)
Additional minimum pension liability 0.0 (5.4)
Accumulated translation adjustments 8.8 10.3
Treasury stock, at cost,
2,883,485 shares in 1996,
6,917 shares in 1995 (140.2) (0.1)
Total stockholders' equity 314.4 342.9
$1,261.1 $1,293.8
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of dollars)
Years Ended
December 31,
1996 1995
Cash flows provided by (used for)
operating activities
Net earnings $100.1 $282.2
Noncash items included in earnings:
Equity in undistributed
earnings of associated companies (14.6) (17.2)
Depreciation 79.7 83.0
Amortization 9.3 6.9
Deferred income taxes 23.7 (181.6)
Changes in operating assets
and liabilities:
Accounts receivable 7.6 6.3
Inventories (18.4) (12.4)
Accounts payable 3.7 4.8
Accrued expenses (3.2) (9.4)
Income taxes payable 10.5 (4.2)
Other assets (5.9) 11.1
Other liabilities (21.7) (8.7)
Net cash provided by
operating activities 170.8 160.8
Cash flows provided by (used for)
investing activities
Additions to plants, equipment
and facilities (72.5) (97.2)
Proceeds received on sale of assets 13.5 0.0
Return of capital by investees 25.0 0.0
Change in other assets (7.0) 11.4
Net cash used for investing activities (41.0) (85.8)
Cash flows provided by (used for)
financing activities
Proceeds from the exercise
of stock options 2.5 1.3
Proceeds from stock offering,
net of discounts and expenses 0.0 181.2
Purchase of treasury stock (148.7) 0.0
Change in long term debt 23.0 66.0
Proceeds received on sale of put warrants 1.7 0.0
Preferred stock dividend payments 0.0 (14.4)
Purchase of Series A Preferred stock 0.0 (90.0)
Purchase of Series B Preferred stock 0.0 (305.1)
Net cash used for financing activities (121.5) (161.0)
Effect of exchange rate changes on
cash and cash equivalents 0.1 0.3
Increase (decrease) in cash
and cash equivalents 8.4 (85.7)
Cash and cash equivalents,
beginning of year 12.0 97.7
Cash and cash equivalents, end of year $20.4 $12.0
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 or 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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