Exhibit 99.1
Cytec Announces Update to Operating Segments
WEST PATERSON, N.J.--(BUSINESS WIRE)--Jan. 31, 2006--Cytec Industries Inc.
(NYSE:CYT) announced today a refinement to its segment reporting structure
implemented in the fourth quarter of 2005 based on the creation of the Cytec
Specialty Chemicals unit announced in October, 2005. We will continue to report
our Cytec Specialty Chemicals results in two segments: Cytec Performance
Chemicals, previously called Cytec Performance Specialties and Cytec Surface
Specialties. However, the specialty adhesive and urethane product lines, with
annual revenues in 2005 of approximately $160 million, are moving from Cytec
Surface Specialties to Cytec Performance Chemicals. This refinement better
reflects the customer perspective, how we run the business and manage the
assets. Cytec Surface Specialties is now made up of product lines that enhance
the surface qualities of products primarily in the global coatings and inks
markets. Cytec Performance Chemicals is comprised of specialty chemical product
lines servicing a variety of industrial global markets including mining,
plastics, adhesives, and water treatment.
David Lilley, Chairman, President and Chief Executive Officer said, "The
new Cytec Specialty Chemicals organization, headed by Shane Fleming, is focused
on delivering earnings growth through developing new products, geographic
expansion and operational excellence programs such as business process
improvements and cost efficiencies in the areas of manufacturing, procurement,
supply chain and various other support functions. Shane and his strong team have
a number of challenges ahead of them but I am confident that this realignment of
the product lines will bring greater focus on the growth opportunities in each
segment."
A brief summary of our reportable segments reflecting the realigned product
lines is as follows:
-- Cytec Performance Chemicals - Includes water treatment chemicals,
mining chemicals, specialty additives and phosphines, polymer
additives, specialty adhesives and urethanes.
-- Cytec Surface Specialties - Includes radcure resins, powder resins and
liquid coating resins.
-- Cytec Engineered Materials is unchanged.
-- Building Block Chemicals is unchanged.
Segment results by quarter and full year 2004 and the first three quarters
of 2005 reflecting this change are provided at the end of this release.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein,
statements contained in this release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act 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 our filings with the Securities and Exchange
Commission.
Corporate Profile
Cytec Industries Inc. is a global specialty chemicals and materials company
focused on developing, manufacturing and selling value-added products with
estimated sales in 2005 of approximately $3.0 billion. Our products serve a
diverse range of end markets including aerospace, adhesives, automotive and
industrial coatings, chemical intermediates, inks, mining, plastics and water
treatment. We use our technology and application development expertise to create
chemical and material solutions that are formulated to perform specific and
important functions in the finished products of our customers.
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED NET SALES AND EARNINGS FROM OPERATIONS
BY BUSINESS SEGMENT
RESTATEMENT FOR SEGMENT REORGANIZATION
Millions of dollars
(Unaudited)
Three Months Ended Year
------------------ Ended
March 31 June 30 Sept 30 Dec 31 Dec 31
2004 2004 2004 2004 2004
---- ---- ---- ---- ----
Net Sales
Cytec Performance
Chemicals $167.0 175.7 187.3 182.9 712.9
Cytec Surface Specialties 65.3 66.8 64.8 63.8 260.7
Cytec Engineered Materials 120.3 128.1 121.2 117.4 487.0
Building Block Chemicals 62.6 51.3 60.2 86.5 260.6
--------------------------------------------
TOTAL $415.2 422.0 433.5 450.6 1,721.3
============================================
Three Months Ended Year
------------------ Ended
March 31 June 30 Sept 30 Dec 31 Dec 31
2004 2004 2004 2004 2004
---- ---- ---- ---- ----
Earnings From Operations
Cytec Performance
Chemicals $ 9.6 12.6 15.7 19.6 57.5
Cytec Surface Specialties 8.5 10.1 5.1 5.0 28.7
Cytec Engineered Materials 23.5 26.7 19.5 13.8 83.4
Building Block Chemicals 6.9 2.0 3.7 3.1 15.6
Unallocated (1.8) (2.5) (10.1) (3.2) (17.5)
--------------------------------------------
TOTAL $ 46.7 48.9 33.9 38.3 167.7
============================================
CYTEC INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED NET SALES AND EARNINGS FROM OPERATIONS
BY BUSINESS SEGMENT
RESTATEMENT FOR SEGMENT REORGANIZATION
Millions of dollars
(Unaudited)
Three Months Ended
------------------ Nine Months Ended
March 31 June 30 Sept 30 Sept. 30
2005 2005 2005 2005
---- ---- ---- ----
Net Sales
Cytec Performance
Chemicals $196.0 227.3 211.6 634.9
Cytec Surface Specialties 168.2 371.2 353.6 893.0
Cytec Engineered Materials 127.8 141.0 135.7 404.5
Building Block Chemicals 71.9 73.9 59.9 205.7
------------------------------------
TOTAL $563.9 813.4 760.8 2,138.1
====================================
Three Months Ended
------------------ Nine Months Ended
March 31 June 30 Sept 30 Sept. 30
2005 2005 2005 2005
---- ----- ------ ----
Earnings From Operations
Cytec Performance
Chemicals $ 7.6 15.4 16.6 39.6
Cytec Surface Specialties (27.9) 15.6 20.3 8.0
Cytec Engineered Materials 23.4 25.3 27.6 76.3
Building Block Chemicals 7.3 6.8 (4.4) 9.7
Unallocated (3.3) (2.1) (4.5) (9.9)
------------------------------------
TOTAL $ 7.1 60.9 55.6 123.7
====================================
Notes:
For the quarter ended March 31, 2005:
- Cytec Performance Chemicals includes a pre-tax charge of $7.0 for
acquired in-process research and development costs and a pre-tax
charge of $1.3 million for acquired finished goods inventory recorded
at fair value which exceeded normal manufacturing cost; both in
connection with the Surface Specialties acquisition.
- Cytec Surface Specialties includes a pre-tax charge of $30.1 for
acquired in-process research and development costs and a pre-tax
charge of $9.2 million for acquired finished goods inventory recorded
at fair value which exceeded normal manufacturing cost; both in
connection with the Surface Specialties acquisition.
For the quarter ended June 30, 2005:
- Cytec Performance Chemicals includes a pre-tax charge of $1.3 million
for acquired finished goods inventory recorded at fair value which
exceeded normal manufacturing in connection with the Surface
Specialties acquisition.
- Cytec Surface Specialties includes a pre-tax charge of $9.0 million
for acquired finished goods inventory recorded at fair value which
exceeded normal manufacturing cost in connection with the Surface
Specialties acquisition.
CONTACT: Cytec Industries Inc.
Investment Community:
David M. Drillock, 973-357-3249
or
Media:
Gail Petersen, 973-357-3319