Cytec aerospace materials sales rise 14% in Q1

Sales of the Structural Materials product line were $51 million reflecting the challenging European demand environment which impacted the high performance automotive and motorsports markets.  Included in Structural Materials is $12 million of sales related to the distribution product line which is in the process of being divested.  Sales in the Process Materials (vacuum bagging) product line were $33 million which reflected improving sales into the wind energy market.

Operating earnings were $2.6 million for the quarter and fell below our expectation primarily due to unfavorable product mix within process materials and lower selling volumes in structural composites.  In addition, we incurred $0.8 million of one-time costs associated with exiting a distributor agreement and other head-count reductions.    

Cytec In Process Separation sales decreased 3% to $89 million; Operating Earnings decreased to $16.7 million.

In Process Separation selling volumes decreased by 4% versus the first quarter of 2012 mostly due to a weaker alumina market.  The business also experienced lower metal extractant sales mostly due to order timing.  Higher selling prices increased sales by 1%.

Operating earnings were $16.7 million versus $22.9 million in the prior year quarter, partly due to lower selling volumes and less favorable product mix.  In addition, manufacturing and commercial costs are higher in anticipation of increased revenue growth as the year progresses.  These unfavorable impacts were partially offset by higher selling prices.

Cytec Additive Technologies sales increased 1% to $69 million; Operating Earnings increased to $8.0 million.

In Additive Technologies, overall selling volumes were up 2% versus the first quarter 2012 primarily due to higher demand for polymer additive products in Europe related to demand improvement in the agricultural film market and general demand improvement for differentiated technologies in North American markets. This was partially offset by lower selling volumes for specialty additive products in Europe and North America.  Changes in the selling prices and the overall impact of exchange rates on sales were essentially flat versus the prior year quarter.

Operating earnings of $8.0 million were up versus $6.4 million in the first quarter of 2012, mostly due to higher selling volumes in the polymer additive product line, favorable product mix, and lower raw material costs.

Cytec Industries