Cytec Industries — Q1 2011 Earnings Presentation
15 slides from Cytec Industries's earnings presentation, Apr 25, 2011
Slide 1: First Quarter 2011 Earnings Review
First Quarter 2011 Earnings Review Shane Fleming – Chairman, President and CEO Dave Drillock – Vice President and CFO April 25, 2011
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 Cytec Sales by Quarter ($M) 1st Quarter 2011: 850 750 Sales of $766 million 650 550 450 CEM Net Earnings of $0.78 350 CSC per diluted share 250 (Continuing operations attributable 150 to Cytec, excluding special items) 50 Q1 10 Q1 11 • Overall sales up 18% year on year • Volume grow
Slide 4: Business Segment Results: Coating Resins
Business Segment Results Coating Resins $MM USD Q1 11 Q1 10 % chg Sales 403.6 341.4 18% Operating Earnings 18.8 16.8 12% % Sales 5% 5% Sales Comparison Q1 YOY • Demand improvement led by powder and waterborne resins with strongest growth in Sales Growth 18% Asia and Europe Volume 5% • Strong sales i
Slide 5: Coating Resins
Coating Resins M$ Monthly Sales Trend 180 160 140 120 100 80 60 40 20 2009 2010 2011 5
Slide 6: Business Segment Results: Additive Technologies
Business Segment Results Additive Technologies $MM USD Q1 11 Q1 10 % chg Sales 67.4 62.3 8% Operating Earnings 8.0 8.4 -5% % Sales 12% 13% Sales Comparison Q1 YOY • Volume growth lead by specialty additives across most regions Sales Growth 8% • Lower polymer additives volume due to capacity constrai
Slide 7: Business Segment Results: In Process Separation
Business Segment Results In Process Separation $MM USD Q1 11 Q1 10 % chg Sales 78.4 65.1 20% Operating Earnings 16.4 14.9 10% % Sales 21% 23% Sales Comparison Q1 YOY • Volume growth of 16% led by strong demand in mining chemicals Sales Growth 20% reflecting higher production rates Volume 16% from ba
Slide 8: Business Segment Results: Engineered Materials
Business Segment Results Engineered Materials $MM USD Q1 11 Q1 10 % chg Sales 216.6 177.7 22% Operating Earnings 26.7 21.0 27% % Sales 12% 12% • Robust volume growth lead by higher Sales Comparison Q1 YOY build rates in large commercial transport, business jet, and rotorcraft Sales Growth 22% market
Slide 9: Financial Results
Financial Results First Quarter 2011 • Special Items: – Pre-tax net restructuring credit of $0.7M – Pre-tax charge of $3.2Mrelated to an increase in environmental liability at an inactive site – Pre-tax gain of $3.3M related to a sale of land at our manufacturing site in Colombia which was shutdown
Slide 10: Financial Results
Financial Results First Quarter 2011 • As-Adjusted Comments: – Gross margin of 23.5% down slightly vs. prior year due to cost escalations – Lower Corporate and Unallocated vs. prior year due to reduced consulting costs. Also includes $1.0 and $1.4M of costs previously allocated to Building Block Che
Slide 11: Cash Flow
Cash Flow Cash flow from continuing operations was $22M in Q1’11 vs. $32M in Q1’10 Working Capital Days 110 100 90 80 74 72 74 69 70 67 69 60 50 48 56 51 51 58 50 57 49 49 40 47 53 48 30 20 10 0 Q4 09 avg Q1 10 avg Q2 10 avg Q3 10 avg Q4 10 avg Q1 11 avg Inventory-DOS Acct Payable-DPO Acct Receivabl
Slide 12: Balance Sheet
Balance Sheet Capital Expenditures • Q1’11 capital expenditures of $26M vs. Q1’10 of $28M • Outlook for Full Year 2011 is estimated to be $170 to $190M Maintaining Liquidity and Returning Excess Cash to Shareholders • Cash balance is $522M, up by $139M from year-end 2010 • Pension contribution of $1
Slide 13: 2011 Outlook
2011 Outlook We reiterate our outlook for 2011 full year adjusted continuing EPS of $3.15 to $3.50. Outlook table in Millions Business Segment Net Sales Operating Earnings Guidance Coating Resins $1,500 to $1,520 $70 to $80 Additive Technologies $260 to $280 $37 to $40 In Process Separation $320 to
Slide 14: CYT : NYSE
CYTEC Delivering Technology Beyond Our Customers’ Imagination™ CYT : NYSE
Slide 15: Appendix: Reconciliation of Non-GAAP Measures to GAAP Measures
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