Cytec Industries Inc. announced net earnings attributable to Cytec for the first quarter 2013 of $33.5 million or $0.73 per diluted share.  Net sales from continuing operations were $477.4 million. Earnings from continuing operations were $8.0 million or $0.17 per diluted share. 

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.  

Cytec Industrial Materials sales were $84 million; Operating Earnings were $2.6 million.

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.