CYTEC INDUSTRIES INC/DE/ - FORM 8-K - EX-99.1

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8-K - FORM 8-K - CYTEC INDUSTRIES INC/DE/	d565278d8k.htm

Exhibit 99.1

LOGO

Cytec Industries Inc.

Five Garret Mountain Plaza

Woodland Park, New Jersey 07424

www.cytec.com

Contact:

Jodi A. Allen

(973) 357-3283

Release Date: Immediate

Cytec Announces Change in Pension Accounting

Woodland Park, NJ., July 8, 2013 – Cytec Industries Inc. (CYT) announced it has changed its method of accounting for its continuing pension and other postemployment benefit (OPEB) plans to a more preferable method as permitted under generally accepted accounting principles in the United States (GAAP). The new accounting method, referred to as mark-to-market (MTM), was adopted in the second quarter of 2013, and will be retrospectively applied to the Company’s financial results for all periods. See the adjusted statements of income on pages 4, 6-10, and 13-17 in the accompanying Schedules providing for the effect of the accounting change on the statements of income for the first quarter of 2013, and for the full year and each quarter of 2012 and 2011, respectively.

Under the newly adopted method of accounting for actuarial gains and losses for its pension and OPEB plans, the Company expects its 2013 pension and OPEB costs to be lower than previously anticipated by approximately $30 million, pre-tax, excluding any potential MTM adjustment.

David Drillock, Vice President and Chief Financial Officer said, “With the excellent funding status of our global pension plans and our successful Liability Driven Investment strategy, we believe this accounting change is more appropriate and will provide greater transparency that will allow investors to more clearly evaluate the Company’s operating performance by recognizing actuarial gains and losses in its operating results in the year in which the gains and losses occur, rather than amortizing them over future periods. This accounting change has no impact on benefits received by participants of the pension and OPEB plans. Additionally, there is no impact on pension and OPEB plan funding or Cytec’s cash flow.”

Historically, Cytec has recognized pension and OPEB actuarial gains and losses annually in its Consolidated Balance Sheets as Accumulated Other Comprehensive Income (Loss) as a component of Stockholders’ Equity, and then amortized these gains and losses each quarter in its Statements of Income. The expected return on assets component of Cytec’s pension expense had been calculated using a five-year smoothing of asset gains and losses. In addition, the gain or loss component of pension and OPEB expense had historically been based on amortization of actuarial gains and losses that exceed 10 percent of the greater of plan assets or projected benefit obligations over the average future service period of active employees.

Under the new method of accounting, Cytec’s pension and OPEB costs consist of two elements: 1) ongoing costs recognized quarterly, which are comprised of service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; and 2) MTM gains and losses recognized annually, in the fourth quarter of each year, resulting from changes in actuarial assumptions, such as discount rates, and the differences between actual and expected returns on plan assets. Any interim re-measurements triggered by a curtailment, settlement, or significant plan changes will be recognized as MTM adjustments in the quarter in which such re-measurement event occurs. MTM adjustments will be recognized as “special items” and included in the reconciliation of GAAP to Non-GAAP reported earnings as the company believes this presentation provides investors with a view of operations consistent with managements internal reporting.

As a result of the retrospective application of this change, Cytec’s diluted earnings per share from continuing operations for the quarter ended March 31, 2013 changed from $0.17 to $0.19. Excluding the impact of MTM adjustments and other special items, net, diluted earnings per share from continuing operations for the first quarter of 2013 would have increased from $0.75 to $0.85. For the year ended December 31, 2012, Cytec’s diluted earnings per share from continuing operations changed from $2.01 to $1.62. Excluding the impact of MTM adjustments and other special items, net, diluted earnings per share from continuing operations for 2012 would have increased from $3.08 to $3.45. For the reconciliation of reported Company earnings to Non-GAAP net earnings from continuing operations for the first quarter of 2013, and for 2012 and 2011 under the new accounting method, see pages 5, 11-12, and 18-19, respectively, in the accompanying Schedules.

Cytec’s operating segment results follow internal management reporting, which is used for making operating decisions and assessing performance. Historically, total pension and OPEB costs have been allocated to each segment. In conjunction with the change in accounting principle, the service cost, which represents the benefits earned by active employees during the period, and amortization of prior service costs/credits will continue to be allocated to each business segment. Interest costs, expected return on assets, and MTM adjustments for actuarial gains and losses will be included in the Corporate and Unallocated segment and not allocated to the business segments. Management believes this change in expense allocation will better reflect the underlying operating results of each business. See the accompanying Schedules for the adjusted earnings

from operations by business segment providing for the effect of the accounting change on reported segment earnings on pages 4, 6-10, and 13-17 for the first quarter of 2013, and for 2012 and 2011, respectively. There is no change to Cytec’s method of accounting for certain related costs included in inventory as a result of the change in accounting for pension and OPEB costs.

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 Cytec’s filings with the Securities and Exchange Commission. Cytec disclaims any obligation to update or revise any forward-looking statements.

Corporate Profile

Cytec’s vision is to deliver specialty material and chemical technologies beyond our customers’ imagination. Our focus on innovation, advanced technology and application expertise enables us to develop, manufacture and sell products that change the way our customers do business. Our pioneering products perform specific and important functions for our customers, enabling them to offer innovative solutions to the industries that they serve. Our products serve a diverse range of end markets including aerospace and industrial materials, mining and plastics.

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31, 2013
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	477.4		$	—		$	477.4
Manufacturing cost of sales		337.0			1.8			338.8
Selling and technical services		39.5			(1.3	)		38.2
Research and process development		13.4			(0.6	)		12.8
Administrative and general		31.2			(0.9	)		30.3
Amortization of acquisition intangibles		3.7			—			3.7

Earnings from operations		52.6			1.0			53.6
Other (expense) income, net		(0.7	)		—			(0.7	)
Net loss on early extinguishment of debt		39.4			—			39.4
Equity in earnings of associated companies		0.1			—			0.1
Interest expense, net		6.8			—			6.8

Earnings from continuing operations before income taxes		5.6			1.0			6.6
Income tax provision (benefit)		(2.4	)		0.3			(2.1	)

Earnings from continuing operations		8.0			0.7			8.7

Earnings from operations of discontinued business, net of tax		30.2			1.4			31.6
Loss on sale of discontinued operations, net of tax		(4.3	)		—			(4.3	)

Earnings from discontinued operations, net of tax		25.9			1.4			27.3

Net earnings		33.9			2.1			36.0
Less: Net earnings attributable to noncontrolling interests		(0.4	)		—			(0.4	)

Net earnings attributable to Cytec Industries Inc.	$	33.5		$	2.1		$	35.6

Comprehensive income	$	13.3		$	(4.0	)	$	9.3
Less: Comprehensive income attributable to noncontrolling interest		(0.2	)					(0.2	)

Comprehensive income attributable to Cytec Industries Inc.	$	13.1		$	(4.0	)	$	9.1

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.18		$	0.01		$	0.19
Discontinued operations		0.57			0.03			0.60

	$	0.75		$	0.04		$	0.79

Diluted earnings per common share
Continuing operations	$	0.17		$	0.02		$	0.19
Discontinued operations		0.56			0.03			0.59

	$	0.73		$	0.05		$	0.78

Shares used in calculating earnings per common share (in 000s)
Basic		45,018			45,018			45,018
Diluted		45,853			45,853			45,853

Earnings from operations by business segment
Aerospace Materials	$	41.5		$	3.5		$	45.0
Industrial Materials		2.6			0.2			2.8
In Process Separation		16.7			1.0			17.7
Additive Technologies		8.0			0.9			8.9

Earnings from segments		68.8			5.6			74.4
Corporate and unallocated, net (1)		(16.2	)		(4.6	)		(20.8	)

Earnings from operations	$	52.6		$	1.0		$	53.6

(1)	Includes $6.3 for MTM adjustments, which represents the portion of our fourth quarter of 2012 MTM adjustment that was deferred in inventory at the end of 2012.

Reconciliation of GAAP and Non-GAAP Measures

Amounts in millions except per share amounts

(Unaudited)


	As Previously				Effect of
	Reported				Accounting Change				Revised
	Net		Diluted		Net		Diluted		Net		Diluted
	Earnings		EPS		Earnings		EPS		Earnings		EPS
Three Months Ended March 31, 2013
GAAP earnings from continuing operations	$	8.0	$	0.17	$	0.7	$	0.02	$	8.7	$	0.19
- Net charges related to stranded cost reduction initiative and costs related to a divestiture of a product line		0.5		0.01		—		—		0.5		0.01
- Premiums paid on early tender for public debts		24.7		0.54		—		—		24.7		0.54
- Revision to established tax liability on unrepatriated earnings of foreign subsidiaries resulting from intended sale of Coating Resins business		1.0		0.02		—		—		1.0		0.02
- Pension mark-to-market adjustment		—		—		4.0	$	0.09		4.0		0.09

Non-GAAP net earnings from continuing operations*	$	34.2	$	0.75	$	4.7	$	0.10	$	38.9	$	0.85

*	May not add due to rounding

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31, 2012
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	378.1		$	—		$	378.1
Manufacturing cost of sales		252.9			11.4			264.3
Selling and technical services		33.1			(0.9	)		32.2
Research and process development		12.9			(0.4	)		12.5
Administrative and general		26.6			(0.7	)		25.9
Amortization of acquisition intangibles		0.8			—			0.8
(Loss) gain on sale of assets		—			—			—

Earnings from operations		51.8			(9.4	)		42.4
Other (expense) income, net		0.9			—			0.9
Net loss on early extinguishment of debt		—			—			—
Equity in earnings of associated companies		—			—			—
Interest expense, net		8.7			—			8.7

Earnings (loss) from continuing operations before income taxes		44.0			(9.4	)		34.6
Income tax provision (benefit)		13.8			(3.7	)		10.1

Earnings from continuing operations		30.2			(5.7	)		24.5

Earnings from operations of discontinued business, net of tax		23.4			1.6			25.0
Loss on sale of discontinued operations, net of tax		—			—			—

Earnings from discontinued operations, net of tax		23.4			1.6			25.0

Net earnings		53.6			(4.1	)		49.5
Less: Net earnings attributable to noncontrolling interests		(0.5	)		—			(0.5	)

Net earnings attributable to Cytec Industries Inc.	$	53.1		$	(4.1	)	$	49.0

Comprehensive income	$	88.5		$	(9.8	)	$	78.7
Less: Comprehensive income attributable to noncontrolling interest		(0.2	)					(0.2	)

Comprehensive income attributable to Cytec Industries Inc.	$	88.3		$	(9.8	)	$	78.5

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.66		$	(0.13	)	$	0.53
Discontinued operations		0.50			0.03			0.53

	$	1.16		$	(0.10	)	$	1.06

Diluted earnings per common share
Continuing operations	$	0.65		$	(0.12	)	$	0.53
Discontinued operations		0.49			0.04			0.53

	$	1.14		$	(0.08	)	$	1.06

Shares used in calculating earnings per common share (in 000s)
Basic		45,961			45,961			45,961
Diluted		46,630			46,630			46,630
Earnings from operations by business segment
Aerospace Materials	$	43.3		$	2.9		$	46.2
Industrial Materials		1.7			0.2			1.9
In Process Separation		22.9			0.7			23.6
Additive Technologies		6.4			0.7			7.1

Earnings from segments		74.3			4.5			78.8
Corporate and unallocated, net (1)		(22.5	)		(13.9	)		(36.4	)

Earnings from operations	$	51.8		$	(9.4	)	$	42.4

(1)	Includes $13.9 for MTM adjustments, which consists of the portion of our fourth quarter of 2011 MTM adjustment that was deferred in inventory at the end of 2011.

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended June 30, 2012
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	404.0		$	—		$	404.0
Manufacturing cost of sales		273.8			(4.3	)		269.5
Selling and technical services		35.4			(0.9	)		34.5
Research and process development		13.2			(0.4	)		12.8
Administrative and general		36.2			(0.7	)		35.5
Amortization of acquisition intangibles		0.9			—			0.9
(Loss) gain on sale of assets		—			—			—

Earnings from operations		44.5			6.3			50.8
Other (expense) income, net		(2.0	)		—			(2.0	)
Net loss on early extinguishment of debt		0.2			—			0.2
Equity in earnings of associated companies		—			—			—
Interest expense, net		8.3			—			8.3

Earnings (loss) from continuing operations before income taxes		34.0			6.3			40.3
Income tax provision (benefit)		25.4			2.5			27.9

Earnings from continuing operations		8.6			3.8			12.4

Earnings from operations of discontinued business, net of tax		27.5			1.1			28.6
Loss on sale of discontinued operations, net of tax		—			—			—

Earnings from discontinued operations, net of tax		27.5			1.1			28.6

Net earnings		36.1			4.9			41.0
Less: Net earnings attributable to noncontrolling interests		(0.4	)		—			(0.4	)

Net earnings attributable to Cytec Industries Inc.	$	35.7		$	4.9		$	40.6

Comprehensive (loss) income	$	(6.0	)	$	(0.1	)	$	(6.1	)
Less: Comprehensive income attributable to noncontrolling interest		(0.5	)					(0.5	)

Comprehensive (loss) income attributable to Cytec Industries Inc.	$	(6.5	)	$	(0.1	)	$	(6.6	)

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.18		$	0.09		$	0.27
Discontinued operations		0.59			0.02			0.61

	$	0.77		$	0.11		$	0.88

Diluted earnings per common share
Continuing operations	$	0.18		$	0.08		$	0.26
Discontinued operations		0.58			0.02			0.60

	$	0.76		$	0.10		$	0.86

Shares used in calculating earnings per common share (in 000s)
Basic		46,247			46,247			46,247
Diluted		46,963			46,963			46,963

Earnings from operations by business segment
Aerospace Materials	$	36.9		$	3.4		$	40.3
Industrial Materials		1.8			0.2			2.0
In Process Separation		27.1			0.9			28.0
Additive Technologies		13.7			0.7			14.4

Earnings from segments		79.5			5.2			84.7
Corporate and unallocated, net		(35.0	)		1.1			(33.9	)

Earnings from operations	$	44.5		$	6.3		$	50.8

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended September 30, 2012
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	455.4		$	—		$	455.4
Manufacturing cost of sales		320.8			(4.0	)		316.8
Selling and technical services		36.5			(0.9	)		35.6
Research and process development		13.4			(0.4	)		13.0
Administrative and general		37.9			(0.7	)		37.2
Amortization of acquisition intangibles		3.4			—			3.4
(Loss) gain on sale of assets		—			—			—

Earnings from operations		43.4			6.0			49.4
Other (expense) income, net		(0.3	)		—			(0.3	)
Net loss on early extinguishment of debt		—			—			—
Equity in earnings of associated companies		(0.1	)		—			(0.1	)
Interest expense, net		7.0			—			7.0

Earnings (loss) from continuing operations before income taxes		36.0			6.0			42.0
Income tax provision (benefit)		5.0			2.3			7.3

Earnings from continuing operations		31.0			3.7			34.7

Earnings from operations of discontinued business, net of tax		38.3			1.4			39.7
Loss on sale of discontinued operations, net of tax		(15.5	)		—			(15.5	)

Earnings from discontinued operations, net of tax		22.8			1.4			24.2

Net earnings		53.8			5.1			58.9
Less: Net earnings attributable to noncontrolling interests		(0.5	)		—			(0.5	)

Net earnings attributable to Cytec Industries Inc.	$	53.3		$	5.1		$	58.4

Comprehensive income	$	89.8		$	(0.1	)	$	89.7
Less: Comprehensive income attributable to noncontrolling interest		(0.6	)					(0.6	)

Comprehensive income attributable to Cytec Industries Inc.	$	89.2		$	(0.1	)	$	89.1

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.67		$	0.08		$	0.75
Discontinued operations		0.48			0.03			0.51

	$	1.15		$	0.11		$	1.26

Diluted earnings per common share
Continuing operations	$	0.66		$	0.08		$	0.74
Discontinued operations		0.47			0.03			0.50

	$	1.13		$	0.11		$	1.24

Shares used in calculating earnings per common share (in 000s)
Basic		46,359			46,359			46,359
Diluted		47,153			47,153			47,153

Earnings from operations by business segment
Aerospace Materials	$	37.4		$	3.0		$	40.4
Industrial Materials		1.4			0.2			1.6
In Process Separation		24.4			1.0			25.4
Additive Technologies		9.6			0.7			10.3

Earnings from segments		72.8			4.9			77.7
Corporate and unallocated, net		(29.4	)		1.1			(28.3	)

Earnings from operations	$	43.4		$	6.0		$	49.4

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended December 31, 2012
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	470.7		$	—		$	470.7
Manufacturing cost of sales		334.1			18.3			352.4
Selling and technical services		42.8			8.2			51.0
Research and process development		13.4			2.3			15.7
Administrative and general		35.9			5.5			41.4
Amortization of acquisition intangibles		3.9			—			3.9
(Loss) gain on sale of assets		(16.7	)		—			(16.7	)

Earnings from operations		23.9			(34.3	)		(10.4	)
Other (expense) income, net		(0.3	)		3.2			2.9
Net loss on early extinguishment of debt		—			—			—
Equity in earnings of associated companies		(0.1	)		—			(0.1	)
Interest expense, net		6.2			—			6.2

Earnings (loss) from continuing operations before income taxes		17.3			(31.1	)		(13.8	)
Income tax provision (benefit)		(6.9	)		(10.9	)		(17.8	)

Earnings from continuing operations		24.2			(20.2	)		4.0

Earnings from operations of discontinued business, net of tax		23.4			0.7			24.1
Loss on sale of discontinued operations, net of tax		(1.1	)		0.5			(0.6	)

Earnings from discontinued operations, net of tax		22.3			1.2			23.5

Net earnings		46.5			(19.0	)		27.5
Less: Net earnings attributable to noncontrolling interests		(0.7	)		—			(0.7	)

Net earnings attributable to Cytec Industries Inc.	$	45.8		$	(19.0	)	$	26.8

Comprehensive income (loss)	$	18.7		$	1.8		$	20.5
Less: Comprehensive income attributable to noncontrolling interest		(0.3	)					(0.3	)

Comprehensive income (los) attributable to Cytec Industries Inc.	$	18.4		$	1.8		$	20.2

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.53		$	(0.44	)	$	0.09
Discontinued operations		0.48			0.02			0.50

	$	1.01		$	(0.42	)	$	0.59

Diluted earnings per common share
Continuing operations	$	0.52		$	(0.43	)	$	0.09
Discontinued operations		0.47			0.02			0.49

	$	0.99		$	(0.41	)	$	0.58

Shares used in calculating earnings per common share (in 000s)
Basic		45,569			45,569			45,569
Diluted		46,402			46,402			46,402
Earnings from operations by business segment
Aerospace Materials	$	38.2		$	3.5		$	41.7
Industrial Materials		5.7			0.2			5.9
In Process Separation		17.4			0.9			18.3
Additive Technologies		8.2			0.8			9.0

Earnings from segments		69.5			5.4			74.9
Corporate and unallocated, net (1)		(45.6	)		(39.7	)		(85.3	)

Earnings from operations	$	23.9		$	(34.3	)	$	(10.4	)

(1)	Includes $41.6 for MTM adjustments related to the fourth quarter of 2012 MTM adjustment.

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Year Ended December 31, 2012
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	1,708.1		$	—		$	1,708.1
Manufacturing cost of sales		1,181.5			21.4			1,202.9
Selling and technical services		147.8			5.5			153.3
Research and process development		52.9			1.1			54.0
Administrative and general		136.6			3.4			140.0
Amortization of acquisition intangibles		9.0			—			9.0
(Loss) gain on sale of assets		(16.7	)		—			(16.7	)

Earnings from operations		163.6			(31.4	)		132.2
Other expense, net		(1.7	)		3.2			1.5
Net loss on early extinguishment of debt		(0.2	)		—			(0.2	)
Equity in earnings of associated companies		(0.2	)		—			(0.2	)
Interest expense, net		30.1			—			30.1

Earnings from continuing operations before income taxes		131.4			(28.2	)		103.2
Income tax provision		37.3			(9.8	)		27.5

Earnings from continuing operations		94.1			(18.4	)		75.7

Earnings from operations of discontinued business, net of tax		112.6			4.8			117.4
(Loss) gain on sale of discontinued operations, net of tax		(16.6	)		0.5			(16.1	)

Earnings from discontinued operations, net of tax		96.0			5.3			101.3

Net earnings		190.1			(13.1	)		177.0
Less: Net earnings attributable to noncontrolling interests		(2.1	)		—			(2.1	)

Net earnings attributable to Cytec Industries Inc.	$	188.0		$	(13.1	)	$	174.9

Comprehensive income	$	191.0		$	(8.2	)	$	182.8
Less: Comprehensive income attributable to noncontrolling interest		(1.6	)					(1.6	)

Comprehensive income attributable to Cytec Industries Inc.	$	189.4		$	(8.2	)	$	181.2

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	2.04		$	(0.40	)	$	1.64
Discontinued operations		2.04			0.12			2.15

	$	4.08		$	(0.28	)	$	3.80

Diluted earnings per common share
Continuing operations	$	2.01		$	(0.39	)	$	1.62
Discontinued operations		2.01			0.11			2.12

	$	4.02		$	(0.28	)	$	3.74

Shares used in calculating earnings per common share (in 000s)
Basic		46,034			46,034			46,034
Diluted		46,786			46,786			46,786
Earnings from operations by business segment
Aerospace Materials	$	155.7		$	12.8		$	168.5
Industrial Materials		10.6			0.8			11.4
In Process Separation		91.8			3.5			95.3
Additive Technologies		37.9			2.9			40.8

Earnings from segments		296.0			20.0			316.0
Corporate and unallocated, net (1)		(132.4	)		(51.4	)		(183.8	)

Earnings from operations	$	163.6		$	(31.4	)	$	132.2

(1)	Includes $55.5 for MTM adjustments, which consists of a charge of $13.9 related to the portion of our fourth quarter of 2011 MTM adjustment that was deferred in inventory at the end of 2011, and a charge of $41.6 related to the fourth quarter of 2012 MTM adjustment.

Reconciliation of GAAP and Non-GAAP Measures

Amounts in millions except per share amounts

(Unaudited)


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net			Diluted			Net			Diluted			Net			Diluted
	Earnings			EPS			Earnings			EPS			Earnings			EPS
Three Months Ended March 31, 2012
GAAP earnings from continuing operations	$	30.2		$	0.65		$	(5.7	)	$	(0.12	)	$	24.5		$	0.53
- Net restructuring charges		(0.1	)		—									(0.1	)		—
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		0.4			0.01									0.4			0.01
- Pension mark-to-market adjustment		—			—			8.6			0.19			8.6			0.19

Non-GAAP net earnings from continuing operations*	$	30.5		$	0.65		$	2.9		$	0.08		$	33.4		$	0.73


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net			Diluted			Net			Diluted			Net			Diluted
	Earnings			EPS			Earnings			EPS			Earnings			EPS
Three Months Ended June 30, 2012
GAAP earnings from continuing operations	$	8.6		$	0.18		$	3.8		$	0.08		$	12.4		$	0.26
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		0.4			0.01									0.4			0.01
- Umeco acquisition costs		2.9			0.06									2.9			0.06
- Net restructuring charges		7.9			0.17									7.9			0.17
- Revision to established tax liability on unrepatriated earnings of foreign subsidiaries resulting from intended sale of Coating Resins business		14.5			0.31									14.5			0.31

Non-GAAP net earnings from continuing operations*	$	34.3		$	0.73		$	3.8		$	0.08		$	38.1		$	0.81


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net			Diluted			Net			Diluted			Net			Diluted
	Earnings			EPS			Earnings			EPS			Earnings			EPS
Three Months Ended September 30, 2012
GAAP earnings from continuing operations	$	31.0		$	0.66		$	3.7		$	0.08		$	34.7		$	0.74
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		0.4			0.01									0.4			0.01
- Umeco acquisition costs		4.3			0.09									4.3			0.09
- Net restructuring charges		3.3			0.07									3.3			0.07
- Amortization of inventory step-up		3.1			0.07									3.1			0.07
- Exchange Loss on intercompany loan related to Umeco acquisition		0.7			0.01									0.7			0.01

Non-GAAP net earnings from continuing operations*	$	42.8		$	0.91		$	3.7		$	0.08		$	46.5		$	0.99


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net			Diluted			Net			Diluted			Net			Diluted
	Earnings			EPS			Earnings			EPS			Earnings			EPS
Three Months Ended December 31, 2012
GAAP earnings from continuing operations	$	24.2		$	0.52		$	(20.2	)	$	(0.43	)	$	4.0		$	0.09
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		0.2			—									0.2			—
- Umeco acquisition costs		1.0			0.02									1.0			0.02
- Net restructuring charges		3.6			0.08									3.6			0.08
- Amortization of inventory step-up		0.7			0.01									0.7			0.01
- Loss on sale of assets		10.5			0.23									10.5			0.23
- Revision to established tax liability on unrepatriated earnings of foreign subsidiaries resulting from intended sale of Coating Resins business		(3.9	)		(0.08	)								(3.9	)		(0.08	)
- Pension mark-to-market adjustment		—			—			27.3			0.59			27.3			0.59

Non-GAAP net earnings from continuing operations*	$	36.3		$	0.78		$	7.1		$	0.16		$	43.4		$	0.94

*	May not add due to rounding

Reconciliation of GAAP and Non-GAAP Measures

Amounts in millions except per share amounts

(Unaudited)


	As Previously				Effect of
	Reported				Accounting Change						Revised
	Net		Diluted		Net			Diluted			Net		Diluted
	Earnings		EPS		Earnings			EPS			Earnings		EPS
Full Year Ended December 31, 2012
GAAP earnings from continuing operations	$	94.1	$	2.01	$	(18.4	)	$	(0.39	)	$	75.7	$	1.62
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		1.5		0.03								1.5		0.03
- Umeco acquisition costs		8.2		0.18								8.2		0.18
- Net restructuring charges		14.6		0.31								14.6		0.31
- Amortization of inventory step-up		3.8		0.08								3.8		0.08
- Exchange loss on intercompany loan related to Umeco acquisition		0.7		0.01								0.7		0.01
- Revision to established tax liability on unrepatriated earnings of foreign subsidiaries resulting from intended sale of Coating Resins business		10.6		0.23								10.6		0.23
- Loss on sale of assets		10.5		0.23								10.5		0.23
- Pension mark-to-market adjustments, net		—		—		35.9			0.77			35.9		0.77

Non-GAAP net earnings from continuing operations*	$	144.0	$	3.08	$	17.5		$	0.37		$	161.5	$	3.45

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended March 31, 2011
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	335.7		$	—		$	335.7
Manufacturing cost of sales		239.3			6.1			245.4
Selling and technical services		32.0			(1.5	)		30.5
Research and process development		10.8			(0.7	)		10.1
Administrative and general		24.9			(1.1	)		23.8
Amortization of acquisition intangibles		0.8			—			0.8
Gain on sale of assets		3.3			—			3.3

Earnings from operations		31.2			(2.8	)		28.4
Other (expense) income, net		(4.3	)		—			(4.3	)
Net loss on early extinguishment of debt		0.1			—			0.1
Interest expense, net		9.2			—			9.2

Earnings (loss) from continuing operations before income taxes		17.6			(2.8	)		14.8
Income tax provision (benefit)		3.1			(1.1	)		2.0

Earnings from continuing operations		14.5			(1.7	)		12.8

Earnings from operations of discontinued business, net of tax		32.6			1.0			33.6
Gain (loss) on sale of discontinued operations, net of tax		36.8			1.9			38.7

Earnings from discontinued operations, net of tax		69.4			2.9			72.3

Net earnings		83.9			1.2			85.1
Less: Net earnings attributable to noncontrolling interests		(0.7	)		—			(0.7	)

Net earnings attributable to Cytec Industries Inc.	$	83.2		$	1.2		$	84.4

Comprehensive income	$	137.5		$	(8.7	)	$	128.8
Less: Comprehensive income attributable to noncontrolling interest		(0.7	)					(0.7	)

Comprehensive income attributable to Cytec Industries Inc.	$	136.8		$	(8.7	)	$	128.1

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.29		$	(0.03	)	$	0.26
Discontinued operations		1.38			0.06			1.44

	$	1.67		$	0.03		$	1.70

Diluted earnings per common share
Continuing operations	$	0.29		$	(0.04	)	$	0.25
Discontinued operations		1.37			0.05			1.42

	$	1.66		$	0.01		$	1.67

Shares used in calculating earnings per common share (in 000s)
Basic		49,622			49,622			49,622
Diluted		50,260			50,260			50,260

Earnings from operations by business segment
Aerospace Materials	$	23.1		$	2.4		$	25.5
Industrial Materials		2.0			0.2			2.2
In Process Separation		16.4			0.9			17.3
Additive Technologies		8.4			0.6			9.0

Earnings from segments		49.9			4.1			54.0
Corporate and unallocated, net (1)		(18.7	)		(6.9	)		(25.6	)

Earnings from operations	$	31.2		$	(2.8	)	$	28.4

(1)	Includes $3.4 for MTM adjustments, which includes a charge of $6.5 from the portion of our fourth quarter MTM adjustment that was deferred in inventory at the end of 2010, and a credit of $3.1 related to a MTM adjustment triggered by the sale of our former Building Block Chemicals business.

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended June 30, 2011
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	347.3		$	—		$	347.3
Manufacturing cost of sales		244.1			(6.4	)		237.7
Selling and technical services		32.5			(0.7	)		31.8
Research and process development		11.2			(0.3	)		10.9
Administrative and general		26.5			(0.5	)		26.0
Amortization of acquisition intangibles		0.8			—			0.8
Gain on sale of assets		—			—			—

Earnings from operations		32.2			7.9			40.1
Other (expense) income, net		(2.0	)		—			(2.0	)
Net loss on early extinguishment of debt		0.2			—			0.2
Interest expense, net		9.6			—			9.6

Earnings (loss) from continuing operations before income taxes		20.4			7.9			28.3
Income tax provision (benefit)		6.4			3.4			9.8

Earnings from continuing operations		14.0			4.5			18.5

Earnings from operations of discontinued business, net of tax		24.1			1.3			25.4
Gain (loss) on sale of discontinued operations, net of tax		(2.2	)		—			(2.2	)

Earnings from discontinued operations, net of tax		21.9			1.3			23.2

Net earnings		35.9			5.8			41.7
Less: Net earnings attributable to noncontrolling interests		(0.8	)		—			(0.8	)

Net earnings attributable to Cytec Industries Inc.	$	35.1		$	5.8		$	40.9

Comprehensive income	$	61.5		$	2.2		$	63.7
Less: Comprehensive income attributable to noncontrolling interest		(0.8	)					(0.8	)

Comprehensive income attributable to Cytec Industries Inc.	$	60.7		$	2.2		$	62.9

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.28		$	0.10		$	0.38
Discontinued operations		0.43			0.02			0.45

	$	0.71		$	0.12		$	0.83

Diluted earnings per common share
Continuing operations	$	0.28		$	0.09		$	0.37
Discontinued operations		0.42			0.03			0.45

	$	0.70		$	0.12		$	0.82

Shares used in calculating earnings per common share (in 000s)
Basic		49,257			49,257			49,257
Diluted		49,918			49,918			49,918

Earnings from operations by business segment
Aerospace Materials	$	27.2		$	2.8		$	30.0
Industrial Materials		0.9			0.2			1.1
In Process Separation		15.6			0.8			16.4
Additive Technologies		10.6			0.6			11.2

Earnings from segments		54.3			4.4			58.7
Corporate and unallocated, net (1)		(22.1	)		3.5			(18.6	)

Earnings from operations	$	32.2		$	7.9		$	40.1

(1)	Includes a credit of $3.9 for MTM adjustments, which represents the portion of our first quarter MTM adjustment triggered by the sale of our former Building Block Chemicals business that was deferred in inventory at the end of the first quarter of 2011.

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended September 30, 2011
	As			Effect of
	Previously			Accounting
(Dollars in millions, expect per share amounts)	Reported			Change			Revised
Net sales	$	363.4		$	—		$	363.4
Manufacturing cost of sales		256.0			(2.8	)		253.2
Selling and technical services		29.3			(0.7	)		28.6
Research and process development		10.9			(0.3	)		10.6
Administrative and general		20.6			(0.5	)		20.1
Amortization of acquisition intangibles		0.8			—			0.8
Gain on sale of assets		—			—			—

Earnings from operations		45.8			4.3			50.1
Other (expense) income, net		1.3			—			1.3
Net loss on early extinguishment of debt		—			—			—
Interest expense, net		8.6			—			8.6

Earnings (loss) from continuing operations before income taxes		38.5			4.3			42.8
Income tax provision (benefit)		13.1			0.4			13.5

Earnings from continuing operations		25.4			3.9			29.3

Earnings from operations of discontinued business, net of tax		23.1			—			23.1
Gain (loss) on sale of discontinued operations, net of tax		—			—			—

Earnings from discontinued operations, net of tax		23.1			—			23.1

Net earnings		48.5			3.9			52.4
Less: Net earnings attributable to noncontrolling interests		(0.6	)		—			(0.6	)

Net earnings attributable to Cytec Industries Inc.	$	47.9		$	3.9		$	51.8

Comprehensive income (loss)	$	(41.1	)	$	0.2		$	(40.9	)
Less: Comprehensive income attributable to noncontrolling interest		(0.6	)					(0.6	)

Comprehensive income (loss) attributable to Cytec Industries Inc.	$	(41.7	)	$	0.2		$	(41.5	)

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.52		$	0.09		$	0.61
Discontinued operations		0.47			—			0.47

	$	0.99		$	0.09		$	1.08

Diluted earnings per common share
Continuing operations	$	0.52		$	0.08		$	0.60
Discontinued operations		0.46			—			0.46

	$	0.98		$	0.08		$	1.06

Shares used in calculating earnings per common share (in 000s)
Basic		48,364			48,364			48,364
Diluted		48,834			48,834			48,834

Earnings from operations by business segment
Aerospace Materials	$	28.1		$	3.1		$	31.2
Industrial Materials		1.9			0.2			2.1
In Process Separation		17.3			0.9			18.2
Additive Technologies		12.8			0.6			13.4

Earnings from segments		60.1			4.8			64.9
Corporate and unallocated, net		(14.3	)		(0.5	)		(14.8	)

Earnings from operations	$	45.8		$	4.3		$	50.1

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Three Months Ended December 31, 2011
(Dollars in millions, expect per share amounts)	As Previously Reported			Effect of Accounting Change			Revised
Net sales	$	369.5		$	—		$	369.5
Manufacturing cost of sales		252.6			38.9			291.5
Selling and technical services		33.4			8.3			41.7
Research and process development		12.2			3.8			16.0
Administrative and general		24.2			6.1			30.3
Amortization of acquisition intangibles		0.8			—			0.8
Gain on sale of assets		—			—			—

Earnings from operations		46.3			(57.1	)		(10.8	)
Other (expense) income, net		(0.2	)		1.2			1.0
Net loss on early extinguishment of debt		—			—			—
Interest expense, net		8.4			—			8.4

Earnings (loss) from continuing operations before income taxes		37.7			(55.9	)		(18.2	)
Income tax provision (benefit)		5.7			(20.7	)		(15.0	)

Earnings from continuing operations		32.0			(35.2	)		(3.2	)

Earnings from operations of discontinued business, net of tax		10.6			2.4			13.0
Gain (loss) on sale of discontinued operations, net of tax		—			—			—

Earnings from discontinued operations, net of tax		10.6			2.4			13.0

Net earnings		42.6			(32.8	)		9.8
Less: Net earnings attributable to noncontrolling interests		(1.0	)		—			(1.0	)

Net earnings attributable to Cytec Industries Inc.	$	41.6		$	(32.8	)	$	8.8

Comprehensive income (loss)	$	0.9		$	8.6		$	9.5
Less: Comprehensive income attributable to noncontrolling interest		(1.0	)					(1.0	)

Comprehensive income (loss) attributable to Cytec Industries Inc.	$	(0.1	)	$	8.6		$	8.5

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	0.69		$	(0.76	)	$	(0.07	)
Discontinued operations		0.20			0.06			0.26

	$	0.89		$	(0.70	)	$	0.19

Diluted earnings per common share
Continuing operations	$	0.68		$	(0.75	)	$	(0.07	)
Discontinued operations		0.20			0.06			0.26

	$	0.88		$	(0.69	)	$	0.19

Shares used in calculating earnings per common share (in 000s)
Basic		46,588			46,588			46,588
Diluted		47,033			47,033			47,033

Earnings from operations by business segment
Aerospace Materials	$	35.3		$	2.8		$	38.1
Industrial Materials		6.3			0.2			6.5
In Process Separation		20.4			0.7			21.1
Additive Technologies		7.5			0.7			8.2

Earnings from segments		69.5			4.4			73.9
Corporate and unallocated, net (1)		(23.2	)		(61.5	)		(84.7	)

Earnings from operations	$	46.3		$	(57.1	)	$	(10.8	)

(1)	Includes $61.0 for MTM adjustments related to the fourth quarter of 2011 MTM adjustment.

CYTEC INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Year Ended December 31, 2011
(Dollars in millions, expect per share amounts)	As Previously Reported			Effect of Accounting Change			Revised
Net sales	$	1,415.9		$	—		$	1,415.9
Manufacturing cost of sales		992.2			35.8			1,028.0
Selling and technical services		127.2			5.4			132.6
Research and process development		45.0			2.5			47.5
Administrative and general		96.1			4.0			100.1
Amortization of acquisition intangibles		3.2			—			3.2
(Loss) gain on sale of assets		3.3			—			3.3

Earnings from operations		155.5			(47.7	)		107.8
Other expense, net		(5.1	)		1.2			(3.9	)
Net loss on early extinguishment of debt		(0.3	)		—			(0.3	)
Equity in earnings of associated companies		—			—			—
Interest expense, net		35.8			—			35.8

Earnings from continuing operations before income taxes		114.3			(46.5	)		67.8
Income tax provision		28.3			(18.0	)		10.3

Earnings from continuing operations		86.0			(28.5	)		57.5

Earnings from operations of discontinued business, net of tax		90.3			4.7			95.0
(Loss) gain on sale of discontinued operations, net of tax		34.6			1.9			36.5

Earnings from discontinued operations, net of tax		124.9			6.6			131.5

Net earnings		210.9			(21.9	)		189.0
Less: Net earnings attributable to noncontrolling interests		(3.1	)		—			(3.1	)

Net earnings attributable to Cytec Industries Inc.	$	207.8		$	(21.9	)	$	185.9

Comprehensive income	$	158.9		$	2.3		$	161.2
Less: Comprehensive income attributable to noncontrolling interest		(3.2	)					(3.2	)

Comprehensive income attributable to Cytec Industries Inc.	$	155.7		$	2.3		$	158.0

Earnings per share attributable to Cytec Industries Inc.
Basic earnings per common share
Continuing operations	$	1.78		$	(0.59	)	$	1.19
Discontinued operations		2.51			0.14			2.65

	$	4.29		$	(0.45	)	$	3.84

Diluted earnings per common share
Continuing operations	$	1.75		$	(0.58	)	$	1.17
Discontinued operations		2.49			0.13			2.62

	$	4.24		$	(0.45	)	$	3.79

Shares used in calculating earnings per common share (in 000s)
Basic		48,449			48,449			48,449
Diluted		49,003			49,003			49,003

Earnings from operations by business segment
Aerospace Materials	$	113.8		$	11.1		$	124.9
Industrial Materials		11.1			0.8			11.9
In Process Separation		69.7			3.3			73.0
Additive Technologies		39.4			2.5			41.9

Earnings from segments		234.0			17.7			251.7
Corporate and unallocated, net (1)		(78.5	)		(65.4	)		(143.9	)

Earnings from operations	$	155.5		$	(47.7	)	$	107.8

(1)

Includes $60.5 for MTM adjustments, which consists of a charge of $6.5 related to the portion of our fourth quarter of 2010 MTM adjustment that was deferred in inventory at the end of 2010, a credit of $7.0 related to a MTM adjustment triggered by the sale of our former Building Block Chemicals business, and a charge of $61.0 related to the fourth quarter of 2011 MTM adjustment.

Reconciliation of GAAP and Non-GAAP Measures

Amounts in millions except per share amounts

(Unaudited)


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net Earnings			Diluted EPS			Net Earnings			Diluted EPS			Net Earnings			Diluted EPS
Three Months Ended March 31, 2011
GAAP earnings from continuing operations	$	14.5		$	0.29		$	(1.7	)	$	(0.04	)	$	12.8		$	0.25
- Net restructuring charges		0.1			—									0.1			—
- Gain on sale of land		(2.1	)		(0.04	)								(2.1	)		(0.04	)
- Environmental liability adjustments		2.0			0.04									2.0			0.04
- Pension mark-to-market adjustment		—			—			2.1			0.04			2.1			0.04

Non-GAAP net earnings from continuing operations*	$	14.5		$	0.29		$	0.4		$	0.01		$	14.9		$	0.30


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net Earnings			Diluted EPS			Net Earnings			Diluted EPS			Net Earnings			Diluted EPS
Three Months Ended June 30, 2011
GAAP earnings from continuing operations	$	14.0		$	0.28		$	4.5		$	0.09		$	18.5		$	0.37
- Net restructuring charges		0.2			—									0.2			—
- Environmental liability adjustments		0.7			0.01									0.7			0.01
- Pension mark-to-market adjustments		—			—			(2.4	)		(0.05	)		(2.4	)		(0.05	)

Non-GAAP net earnings from continuing operations*	$	14.9		$	0.30		$	2.1		$	0.04		$	17.0		$	0.34


	As Previously Reported						Effect of Accounting Change						Revised
	Net Earnings			Diluted EPS			Net Earnings			Diluted EPS			Net Earnings			Diluted EPS
Three Months Ended September 30, 2011
GAAP earnings from continuing operations	$	25.4		$	0.52		$	3.9		$	0.08		$	29.3		$	0.60
- Net restructuring charges		0.1			—								$	0.1		$	—

Non-GAAP net earnings from continuing operations*	$	25.5		$	0.52		$	3.9		$	0.08		$	29.4		$	0.60


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net Earnings			Diluted EPS			Net Earnings			Diluted EPS			Net Earnings			Diluted EPS
Three Months Ended December 31, 2011
GAAP earnings from continuing operations	$	32.0		$	0.68		$	(35.2	)	$	(0.75	)	$	(3.2	)	$	(0.07	)
- Net restructuring charges		0.1			—									0.1			—
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		0.4			0.01									0.4			0.01
- Environmental liability adjustments		0.9			0.02									0.9			0.02
- Pension mark-to-market adjustment		—			—			38.3			0.81			38.3			0.81

Non-GAAP net earnings from continuing operations*	$	33.4		$	0.71		$	3.1		$	0.07		$	36.5		$	0.78

*	May not add due to rounding

Reconciliation of GAAP and Non-GAAP Measures

Amounts in millions except per share amounts

(Unaudited)


	As Previously						Effect of
	Reported						Accounting Change						Revised
	Net			Diluted			Net			Diluted			Net			Diluted
	Earnings			EPS			Earnings			EPS			Earnings			EPS
Full Year Ended December 31, 2011
GAAP earnings from continuing operations	$	86.0		$	1.75		$	(28.5	)	$	(0.58	)	$	57.5		$	1.17
- Net restructuring charges		0.5			0.01									0.5			0.01
- Incremental accelerated depreciation related to sale of R&D facility in Stamford, CT.		0.4			0.01									0.4			0.01
- Gain on sale of land		(2.1	)		(0.04	)								(2.1	)		(0.04	)
- Environmental liability adjustments		3.6			0.07									3.6			0.07
- Pension mark-to-market adjustments, net		—			—			38.0			0.78			38.0			0.78

Non-GAAP net earnings from continuing operations*	$	88.4		$	1.80		$	9.5		$	0.20		$	97.9		$	2.00

*	May not add due to rounding

###

CYTEC INDUSTRIES INC/DE/ - FORM 8-K - EX-99.1 - July 8, 2013

Attached files

CYTEC INDUSTRIES INC/DE/ Reports