Woodland Park, New Jersey -- Cytec Industries Inc.'s Coatings Resins business, which includes most of the company's polyurethane activities, has reported sales up by 25 percent to $369 million for the second quarter of 2010 (Q2), compared to the same period last year.
A 20 July company statement said the unit "continues to show steady demand improvement with stronger volumes in all regions," adding that pricing continues to be competitive, but the effort to offset higher raw material costs continues.
Cytec estimates 2010 sales will be between $1350 and $1450 million, up from a previous range of $1250-1400 million. Operating earnings are now expected to be in a range of $70-80 million, up from our previous range of $45-60 million for this unit, a significant recovery from the operating loss of $3 million reported in 2009, the statement emphasised.
The unit's overall selling volumes increased 27 percent over Q2 of 2009, with continued strong demand in large industrial coatings markets across all regions. Selling prices increased just 2 percent.
Operating earnings increased significantly to $28 million compared to a loss of $19 million in Q2 2009. Overall, the company recorded net earnings of $61.8 million on net sales of $874 million, compared to sales of $685 million in Q2 of 2009.
"The company's best prior performance was the second quarter 2008, and we have exceeded that level with 13-percent lower sales," said Cytec ceo, Shane Fleming. "We were able to deliver stronger earnings at lower sales levels due to the benefits of our 2009 cost-reduction actions, improved product mix from the sales of new products and pruning of low margin products, as well as our ability to recover the raw material escalation's during the quarter," he added. (RD)