Cytec Industries — Q2 2014 Earnings Presentation
14 slides from Cytec Industries's earnings presentation, Jul 18, 2014
Slide 1: Second Quarter 2014 Earnings Review
Second Quarter 2014 Earnings Review Shane Fleming – Chairman, President and CEO Dave Drillock—Vice President and CFO July 18, 2014
Slide 2: Forward Looking Statement
Forward Looking Statement During the course of this meeting we may make forward‐looking statements. All statements that address expectations or projections about the future are forward‐looking statements. Some of these statements include words such as “expects”, “anticipates,” “plans,” “intends,” “p
Slide 3: Results Overview
Results Overview As Adjusted EPS 2nd Quarter 2014 $1.75 Q2 2014 vs. Q2 2013 Continuing Operations $1.70 $1.71 $1.65 $1.60 Sales of $527 Million $1.55 $1.50 Earnings of $62.7M or $1.51 $1.71 per diluted share $1.45 (excluding special items) $1.40 2013 2014 • Sales growth driven by Industrial Material
Slide 4: Business Segment Results – Aerospace Materials
Business Segment Results – Aerospace Materials $M USD Q2’14 Q2’13 %Δ Sales 262 250 5% Operating Earnings 52.7 54.6 ‐3% Q2 Sales Comparison YoY • Sales volume growth related to 737 and 787 offset by Sales Growth 5% lower sales to rotorcraft and missile programs Volume 3% • Operating earnings in the q
Slide 5: Business Segment Results – Industrial Materials
Business Segment Results – Industrial Materials $M USD Q2’14 Q2’13 %Δ Sales 87 85* 2% Operating Earnings 9.6 5.0 92% *Includes $12.2M sales of distribution products Q2 Sales Comparison YoY • Sales in 2013 include $12.2M related to the divested distribution product line; excluding this amount, sales
Slide 6: Business Segment Results – In Process Separation
Business Segment Results – In Process Separation $M USD Q2’14 Q2’13 %Δ Sales 104 106 ‐2% Operating Earnings 28.5 28.4 ‐‐ • Phosphine sales increased in the quarter, but were Q2 Sales Comparison YoY more than offset by declines in alumina and specific mining customer order patterns in Asia Pacific Sa
Slide 7: Business Segment Results – Additive Technologies
Business Segment Results – Additive Technologies $M USD Q2’14 Q2’13 %Δ Sales 74 73 3% Operating Earnings 10.4 12.2 ‐15% Q2 Sales Comparison YoY • Sales increase driven by specialty additives products and polymer additive agricultural film Sales Growth 3% market in Europe Volume 3% • Slower demand in
Slide 8: Financial Results: Q2 2014
Financial Results: Q2 2014 Special Item • Recorded in Continuing operations is a net pre‐tax charge of $0.4 million ($0.2 million after‐tax or $0.01 per diluted share) related to previous restructuring activities as we complete our cost reduction initiatives announced last year. Other financials (Q2
Slide 9: Cash Flow metric
Cash Flow metric Working Capital Days 110 100 90 90 82 81 78 80 80 70 60 52 49 49 48 49 50 40 46 48 48 48 43 30 20 10 0 June‐13 September‐13 December‐13 March‐14 June‐14 Inventory‐DOS Acct Payable‐DPO Acct Receivable‐DSO 9
Slide 10: Balance Sheet – Maintaining Liquidity
Balance Sheet – Maintaining Liquidity Cash: • Cash flow provided by operations $43M in Q2’14 vs. a use of cash of $20M in Q2’13 • Cash flow provided by operations $105M in 6 months 2014 vs. a use of cash of $6M in 6 months 2013 • Cash balance end of Q2 $140M Capital Spending: • $57M in Q2 2014 vs $7
Slide 11: 2014 Outlook
2014 Outlook Business Segment Net Sales Operating Earnings Aerospace Materials $990M – $1,010M $185M – $195M Industrial Materials $320M – $340M $28M – $32M In Process Separation $410M – $430M $91M – $95M Additive Technologies $280M – $290M $39M – $41M Corporate & Unallocated ($25M) Total $2,000M – $
Slide 12: NYSE: CYT
Delivering Technology Beyond Our Customers Imagination’ CYTEC. NYSE: CYT ee
Slide 13: Appendix
Appendix Reconciliation of “Non‐GAAP” Measures to GAAP Measures Management believes that net after‐tax earnings and diluted earnings per share before special items, and gross margins adjusted for special items, which are non‐GAAP measures, are meaningful to investors because they provide a view of t
Slide 14: Appendix
Appendix Reconciliation of “Non‐GAAP” Measures to GAAP Measures Management believes that net after‐tax earnings and diluted earnings per share before special items, and gross margins adjusted for special items, which are non‐GAAP measures, are meaningful to investors because they provide a view of t