Cytec Industries — Q4 2013 Earnings Presentation
14 slides from Cytec Industries's earnings presentation, Jan 31, 2014
Slide 1: Fourth Quarter 2013 Earnings Review
Fourth Quarter 2013 Earnings Review Shane Fleming – Chairman, President and CEO Dave Drillock—Vice President and CFO January 31, 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 2013 vs. 2012 4th Quarter 2013 $6.00 Continuing Operations* $5.00 $4.80 $ $4.00 Sales of $480 Million $3.45 YTD $3.00 Earnings g of $41.9M $ or Q4 $1.15 per diluted share $2.00 (excluding special items) $1.15 $1.00 $0.94 $0.00 2012 2013 • All businesses contributed t
Slide 4: Business Segment Results – Aerospace Materials
Business Segment Results – Aerospace Materials $M USD Q4’13 Q4’12 %Δ Sales 239 232 3% Operating Earnings 37.2 41.7 ‐11% • Revenue growth in the quarter driven by higher selling Q4 Sales Comparison YoY prices Sales Growth 3% • Sales volume growth related to 787 and single‐aisles Volume 0% offset by l
Slide 5: Business Segment Results – Industrial Materials
Business Segment Results – Industrial Materials $M USD Q4’13 Q4’12 %Δ Sales 76 82* ‐7% Operating Earnings 6.0 5.9 2% *Includes $11.7M sales of distribution products Q4 Sales Comparison YoY • Sales in 2012 include $11.7M related to the distribution product line (divested in July 2013); excluding this
Slide 6: Business Segment Results – In Process Separation
Business Segment Results – In Process Separation $M USD Q4’13 Q4’12 %Δ Sales 96 94 2% Operating p g Earnings g 20.0 18.3 9% • Solid base metal demand drove increased sales Q4 Sales Comparison YoY • Growth partially offset by soft demand in alumina, Sales Growth 2% phosphines (order pattern), and low
Slide 7: Business Segment Results – Additive Technologies
Business Segment Results – Additive Technologies $M USD Q4’13 Q4’12 %Δ Sales 68 62 10% p g Earnings Operating g 9.5 9.0 6% • Strong demand for Polymer Additive products Q4 Sales Comparison YoY drove significant increase in sales Sales Growth 10% • Growth mainly in North America and Asia Pacific Volu
Slide 8: Financial Results: Q4 2013
Financial Results: Q4 2013 Special Items Recorded in Continuing operations included in Corporate and Unallocated is a net pre‐tax benefit of $23.7 million ($14 1 million after‐tax or $0 ($14.1 $0.38 38 per diluted share) mainly attributable to these items: • Primarily in Manufacturing Cost of Sales,
Slide 9: Cash Flow metric
Cash Flow metric Working Capital Days 110 100 90 90 82 82 81 80 78 70 60 51 49 49 48 50 49 51 48 40 46 46 43 30 20 10 0 December‐12 March‐13 June‐13 September‐13 December‐13 Inventory‐DOS Inventory DOS Acct Payable‐DPO Payable DPO Acct Receivable‐DSO Receivable DSO 9
Slide 10: Balance Sheet – Maintaining Liquidity
Balance Sheet – Maintaining Liquidity Cash Balance: Short & Long Term Debt: • Year End 2013 $151.8 2013 $716 $716.3M 3M • Year End 2012 $179.3 2012 $706.5M Capital Spending: Net Long‐Term Pension & Other Post • $85M in Q4 Retirement Benefit Liabilities: • $300M FY2013 2013 $151.4 $151 4 2012 $271.9
Slide 11: 2014 Outlook
2014 Outlook Business Segment Net Sales Operating Earnings Aerospace Materials $970M – $990M $183M – $195M Industrial Materials $300M – $320M $22M – $26M In Process Separation $420M – $445M $88M – $97M Additive Technologies $285M – $295M $40M – $42M Corporate & Unallocated ($24M – $28M) Total $1,975
Slide 12: Cytec: Delivering Technology Beyond Our Customers' Imagination
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