Woodland Park, New Jersey -- Cytec Industries Inc.'s Coating Resins business, which includes most of the company's polyurethane activities, has recorded a 16 percent increase in sales for the fourth quarter of 2009 (Q4) to $329 million, compared to the same period in the prior year.
Sales volumes in the coatings unit increased 21 percent, compared to Q4 2008, "due to improved demand and restocking activities," a 28 Jan company statement said. Sales prices fell 12 percent due to competitive pressures and lower raw material costs, meanwhile exchange rates increased sales by 7 percent.
Operating earnings of $17.6 million were up against a loss of $404 million in Q4 2008, mainly due to higher selling volumes across each line, Cytec said. The $404 million operating loss includes a goodwill impairment charge of $385 million and a charge of $1.4 million related to the exit of Radcure manufacturing at Cytec's Pampa, Texas site.
Cytec's overall sales in Q4 were up to $752 million from $698 million in the same period of 2008.
"We are pleased with the results of our fourth quarter which reflect the significant impact of our cost reduction and cash flow improvement efforts, particularly our working capital initiative," said Cytec ceo, Shane Fleming. "In summary we had an excellent finish to a difficult year, our structural improvements are in place, our balance sheet is strong and we have built up good momentum going into 2010," he added. (RD)
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