Cytec aerospace materials sales rise 14% in Q1

Earnings from discontinued operations were $25.9 million or $0.56 per diluted share. Net earnings attributable to non-controlling interests (which are associated with the discontinued operations) were $0.4 million or $0.01 per diluted share. 

Included in the quarter for continuing operations are several special items that total $26.2 million of net charges after-tax, or $0.57 per diluted share, and are outlined further in this release. Excluding these special items, earnings from continuing operations were $34.2 million or $0.75 per diluted share.     

Net earnings attributable to Cytec for the first quarter of 2012 were $53.1 million or $1.14 per diluted share. Net sales from continuing operations were $378.1 million. Earnings from continuing operations were $30.2 million or $0.65 per diluted share. 

Earnings from discontinued operations were $23.4 million or $0.50 per diluted share.  Net earnings attributable to non-controlling interests (which are associated with the discontinued operations) were $0.5 million or $0.01 per diluted share.  

Included in the quarter for continuing operations were several special items that totaled $0.3 million of net expense after-tax or $0.01 per diluted share.  Excluding the special items, earnings from continuing operations were $30.5 million or $0.65 per diluted share.     

Shane Fleming, Chairman, President and Chief Executive Officer commented, "With the Coating Resins divestiture now behind us, I am extremely excited about the opportunities ahead of us as we begin operating as a new Cytec. 

"First quarter 2013 revenue growth met our overall expectations as we anticipated a modest start to the year with stronger growth in the remaining quarters of 2013.  We faced tough comparisons in Aerospace Materials that we expect to see improve as the year progresses.  In addition, we experienced lower volumes combined with unfavorable product mix in both our In Process Separation and Industrial Materials segments which negatively impacted our earnings in the quarter."

Cytec Aerospace Materials sales increased 14% to $236 million; Operating Earnings decreased to $41.5 million.

In Aerospace Materials, selling volumes increased by 4% versus the first quarter 2012 primarily driven by higher build rates in large commercial transport and larger business jets as well as new business jet programs.   Higher selling prices and acquisition related volumes increased sales by 3% and 7%, respectively.

Operating earnings of $41.5 million were down versus earnings of $43.3 million in the prior year quarter, primarily due to higher period costs related to increased manufacturing headcount versus the prior year quarter.  In addition, we experienced an atypical surge in orders in the first quarter 2012 as customers were preparing to meet build rate increases in a longer lead time environment and this resulted in higher production levels and lower unit production costs versus the first quarter 2013.