Cytec to Report Four Operating Segments.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)--March 9, 1999--Cytec Industries Inc. (NYSE NYSE See: New York Stock Exchange :CYT) announced today that the Company 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. 131, "Disclosures about Segments of an Enterprise and Related Information." The Company had previously been reporting 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 three major product categories, 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. , Specialty Materials and Building Block Chemicals. The Company will now disclose the financial results of four operating segments as follows: Water and Industrial Process Chemicals: Water treatment and process chemicals primarily for the paper, water and mining markets. Included in this operating segment are the Paper, Water Treating, Mining and Phosphine phosphine 1. PH3, a toxic war gas called hydrogen phosphide. 2. a coal tar dye; called Philadelphia yellow. Chemical product lines. This segment accounted for approximately 24% of 1998 total Cytec revenues. Previously, these revenues were reported under Specialty Chemicals. Performance Products: Advanced chemical technologies for the coatings, adhesives and plastics markets. Included in the operating segment are the Specialty Resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. , Polymer Additives, Surfactants and Specialty Monomers, and CONAP CONAP Consejo Nacional de Areas Protegidas (Guatemala) product lines. Revenues for this segment were 28% of 1998 total Cytec revenues. In past years, revenues for these product lines were included as part of Specialty Chemicals except for CONAP, which was reported as part of Specialty Materials. Specialty Materials: Advanced composite and adhesive adhesive, substance capable of sticking to surfaces of other substances and bonding them to one another. The term adhesive cement is sometimes used in place of adhesive, especially when referring to a synthetic adhesive. technologies specializing in developing and improving the performance of materials systems Materials system is an advanced type of texture mapping that allows for objects in video games to simulate different types of materials in real life. This makes it so that the texture not only contains graphical data, but references for sound data and physics data (such as density). in demanding applications primarily in commercial and military aerospace. Other applications include satellite, space and launch vehicles This is a list of space launch vehicles sorted by country/operator in alphabetical order, commercial vehicles are listed under their corresponding country.
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Building Block Chemicals: Intermediate chemicals such as 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 , acrylamide acrylamide /acryl·a·mide/ (ah-kril´ah-mid) a vinyl monomer used in the production of polymers with many industrial and research uses; the monomeric form is a neurotoxin. , melamine melamine (mĕl`əmēn'), common name for 2,4,6-triamino-1,3,5-triazine. Melamine is a trimer (see polymer) of cyanamide, H2NC≡N, and is synthesized from calcium carbide. , ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. , hydrocyanic acid hydrocyanic acid (hī'drōsīăn`ĭk): see hydrogen cyanide. , 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. and sulfuric acid sulfuric acid, chemical compound, H2SO4, colorless, odorless, extremely corrosive, oily liquid. It is sometimes called oil of vitriol. Concentrated Sulfuric Acid . This operating segment provides a solid foundation for upgrading into many of the Company's specialty products with additional production sold to third parties globally. This segment accounted for 14% of total 1998 Cytec third party revenues. The attached historical financial information has been provided in order to facilitate understanding of Cytec's past performance per the above operating segment structure. The time periods included are the years ended December December: see month. 31, 1998, 1997 and 1996; and on a quarterly basis for 1997 and 1998. Further information will be disclosed in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1998 and in the Company's annual report to stockholders, both of which will be issued in March. 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. Company Profile 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. is a vertically integrated, specialty chemicals and materials company that focuses on value-added specialty products. The Company develops, manufactures and markets water and industrial process chemicals, performance products, specialty materials and building block chemicals to serve a broad group of end users, including the aerospace, plastics, coatings, mining, paper, water treatment and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר .
Cytec Industries Inc.
Selected Segment Financial Information
For the Years Ended December 31, 1998, 1997 and 1996
$ Millions
Water and Industrial Process Chemicals 1998 1997 1996
Net sales $349.4 $351.3 $340.9
Earnings from operations $34.1 $29.1 $30.5
Percent of sales 9.8% 8.3% 8.9%
Segment Assets $220.4 $188.7 $187.8
Additions to plant, equipment and facilities $28.1 $28.1 $17.1
Performance Products 1998 1997 1996
Net sales $403.4 $395.1 $386.3
Earnings from operations $44.2 $42.9 $43.6
Percent of sales 11.0% 10.9% 11.3%
Segment Assets $411.2 $324.4 $302.6
Additions to plant, equipment and facilities $48.6 $41.5 $26.5
Specialty Materials 1998 1997 1996
Net sales $492.2 $264.3 $159.2
Earnings from operations $81.0 $45.1 $29.5
Percent of sales 16.5% 17.1% 18.5%
Segment Assets $536.0 $530.4 $84.8
Additions to plant, equipment and facilities $10.2 $6.1 $4.6
Building Block Chemicals 1998 1997 1996
Net sales to external customers $199.3 $265.3 $194.4
Intersegment sales $38.4 $48.4 $85.8
Net sales $237.7 $313.7 $280.2
Earnings from operations $35.7 $47.3 $26.6
Percent of sales 15.0% 15.1% 9.5%
Segment Assets $247.7 $254.8 $278.2
Additions to plant, equipment and facilities $16.9 $15.7 $17.9
Divestitures and Other 1998 1997 1996
Net sales to external customers $0.2 $14.6 $178.8
Elimination of intersegment sales ($38.4) ($48.4) ($85.8)
Net sales ($38.2) ($33.8) $93.0
Earnings from operations (a) ($9.5) ($2.8) $5.0
Segment Assets $315.3 $315.8 $407.6
Additions to plant, equipment and facilities $ - $ - $6.4
Total Cytec 1998 1997 1996
Net sales $1,444.5 $1,290.6 $1,259.6
Earnings from operations (a) $185.5 $161.6 $135.2
Percent of sales 12.8% 12.5% 10.7%
Segment Assets $1,730.6 $1,614.1 $1,261.1
Additions to plant, equipment and facilities $103.8 $91.4 $72.5
(a) Excludes $42.4 of restructuring and other charges in 1997.
Numbers may not add due to rounding
Cytec Industries Inc.
Selected Segment Financial Information
For the Three Months Ended March 31, June 30, September 30
& December 31, 1998
$ Millions
Three Months Ended Full Year
Water and Industrial
Process Chemicals March 31 June 30 Sept 30 Dec 31 1998
Net sales $82.3 $88.3 $89.2 $89.6 $349.4
Earnings from operations $6.9 $9.2 $8.8 $9.2 $34.1
Percent of sales 8.4% 10.5% 9.9% 10.2% 9.8%
Three Months Ended Full Year
Performance Products March 31 June 30 Sept 30 Dec 31 1998
Net sales $97.0 $100.7 $102.9 $102.8 $403.4
Earnings from operations $11.1 $11.7 $11.7 $9.7 $44.2
Percent of sales 11.5% 11.6% 11.4% 9.4% 11.0%
Three Months Ended Full Year
Specialty Materials March 31 June 30 Sept 30 Dec 31 1998
Net sales $131.9 $128.5 $116.6 $115.2 $492.2
Earnings from operations $21.3 $21.1 $20.0 $18.6 $81.0
Percent of sales 16.2% 16.4% 17.1% 16.1% 16.5%
Three Months Ended Full Year
Building Block
Chemicals March 31 June 30 Sept 30 Dec 31 1998
Net sales to external
customers $56.8 $48.3 $49.3 $44.9 $199.3
Intersegment sales $10.0 $9.8 $9.7 $8.9 $38.4
Net sales $66.8 $58.1 $59.0 $53.8 $237.7
Earnings from operations $8.6 $11.5 $7.3 $8.3 $35.7
Percent of sales 12.9% 19.9% 12.3% 15.5% 15.0%
Three Months Ended Full Year
Divestitures and Other March 31 June 30 Sept 30 Dec 31 1998
Net sales to external
customers $0.2 $0.0 $0.1 ($0.1) $0.2
Elimination of
intersegment sales ($10.0) ($9.8) ($9.7) ($8.9) ($38.4)
Net sales ($9.8) ($9.8) ($9.6) ($9.0) ($38.2)
Earnings from operations ($1.8) ($3.3) ($3.5) ($1.0) ($9.6)
Three Months Ended Full Year
Total Cytec March 31 June 30 Sept 30 Dec 31 1998
Net sales $368.2 $365.8 $358.1 $352.4 $1,444.5
Earnings from operations $46.1 $50.3 $44.3 $44.8 $185.5
Percent of sales 12.5% 13.7% 12.4% 12.7% 12.8%
Numbers may not add due to rounding
Cytec Industries Inc.
Selected Segment Financial Information
For the Three Months Ended March 31, June 30, September 30
& December 31, 1997
$ Millions
Three Months Ended Full Year
Water and Industrial
Process Chemicals March 31 June 30 Sept 30 Dec 31 1997
Net sales $85.5 $91.0 $89.3 $85.5 $351.3
Earnings from operations $6.5 $8.3 $8.2 $6.2 $29.1
Percent of sales 7.6% 9.1% 9.1% 7.2% 8.3%
Three Months Ended Full Year
Performance Products March 31 June 30 Sept 30 Dec 31 1997
Net sales $97.1 $101.7 $100.5 $95.6 $395.1
Earnings from operations $9.9 $11.6 $12.3 $9.1 $42.9
Percent of sales 10.2% 11.4% 12.2% 9.5% 10.9%
Three Months Ended Full Year
Specialty Materials March 31 June 30 Sept 30 Dec 31 1997
Net sales $49.1 $51.0 $49.0 $115.1 $264.3
Earnings from operations $10.8 $10.3 $9.7 $14.3 $45.1
Percent of sales 22.1% 20.2% 19.8% 12.4% 17.1%
Three Months Ended Full Year
Building Block Chemicals March 31 June 30 Sept 30 Dec 31 1997
Net sales to external
customers $61.2 $71.2 $69.8 $63.2 $265.3
Intersegment sales $15.2 $9.9 $12.1 $11.2 $48.4
Net sales $76.4 $81.1 $81.9 $74.4 $313.7
Earnings from operations $8.1 $12.9 $12.4 $13.9 $47.3
Percent of sales 10.5% 16.0% 15.2% 18.6% 15.1%
Three Months Ended Full Year
Divestitures and Other March 31 June 30 Sept 30 Dec 31 1997
Net sales to external
customers $13.6 $0.5 $0.4 $0.1 $14.6
Elimination of
intersegment sales ($15.2) ($9.9) ($12.1) ($11.2) ($48.4)
Net sales ($1.6) ($9.4) ($11.7) ($11.1) ($33.8)
Earnings from operations (b) ($1.2) ($3.4) ($1.5) $3.3 ($2.8)
Three Months Ended Full Year
Total Cytec March 31 June 30 Sept 30 Dec 31 1997
Net sales $306.5 $315.5 $309.0 $359.6 $1,290.6
Earnings from
operations (b) $34.1 $39.8 $41.1 $46.7 $161.6
Percent of sales 11.1% 12.6% 13.3% 13.0% 12.5%
(b) Excludes $18.6 and $23.8 of restructuring and other charges in the
first and fourth quarters, respectively.
Numbers may not add due to rounding
Notes to Financial Tables -- Allocations of corporate expenses are included in the operating segment results as they are utilized internally by management. -- Items such as restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , asset 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. charges, gains and loss on divestitures and other nonrecurring items are not included in operating segment results. These items are fully disclosed and discussed in the Company's Annual Report on Form 10-K for the respective periods as filed and other reports filed from time to time with the Securities and Exchange Commission. -- Other items not allocated to the operating segments include LIFO/FIFO inventory adjustments and costs related to manufacturing sites no longer utilized. -- Certain products produced by the Company's Building Block Chemicals operating segment are transferred at cost to the Water and Industrial Process Chemicals and Performance Products operating segments. The products are acrylamide, used in both operating segments and melamine used in the Performance Products operating segment. -- Segment assets include accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , inventory and plant, equipment and facilities, (PE&F). Certain allocations of shared facility PE&F were made among the Water and Industrial Process Chemicals and Performance Products operating segments. |
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