Cytec Completes Sale of Industrial Material's Distribution Product Line; Closes Industrial Materials Joint Venture; Announces Plan to Consolidate Ex-Umeco Sites
(Thomson Reuters ONE) -
Woodland Park, New Jersey, July 15, 2013 - Cytec Industries Inc. (NYSE:CYT)
announced today it has completed the sale of the former Umeco distribution
product line, currently part of the Industrial Materials segment, to Cathay
Investments for total consideration of 5.5 million GBP cash ($8.6 million based
on a 1.56 exchange rate) subject to customary post-close adjustments.
The sale is expected to result in a second quarter pre-tax loss of approximately
$12.5 million. The divestiture was factored into Cytec's previously
communicated sales and as-adjusted earnings guidance. The Distribution product
line had revenues of approximately $20 million in the first five months of 2013.
Cytec also announced, in agreement with its joint venture partner, it has exited
and shutdown their Process Materials Joint Venture in China and will enter
liquidation. The Joint Venture, which served the Chinese wind market, was
operated under the Industrial Materials business and was acquired as part of the
Umeco acquisition. Cytec's share of the venture's operating losses were
approximately $0.6 million annually. The closure will result in a second
quarter pre-tax charge of approximately $3.3 million.
"These actions are aligned with focusing the Industrial Materials business on
improving its existing business in its targeted growth markets", said William
Avrin, Vice President Corporate Development and President Industrial Materials.
Cytec also announced its initiative to move all production operations from the
Costa Mesa, Adelanto and Huntington Beach, California sites, each acquired from
the Umeco acquisition, into its Winona, Minnesota and Tulsa, Oklahoma
locations. Approximately 120 employees will be impacted by this move. The
estimated total cost of this initiative is approximately $27 million which
includes about $13 million of capital required to move the products into the
existing operations and approximately $3.5 million for non-cash accelerated
depreciation expense. The remaining costs are for retention and severance
plans, product re-qualifications, certain lease liabilities on impacted
facilities and clean-up costs. Product resites and re-qualifications will begin
immediately with final completion by year-end 2014 and once completed, annual
savings are expected to be $3 to $4 million. Final closure of these California
facilities is expected by mid-2015. As a result of the above, Cytec will record
a pre-tax restructuring charge in the second quarter of 2013 of approximately $1
million with essentially all of the expense amount recorded over the second half
of 2013 and full year 2014.
William Wood, President Aerospace Materials commented, "After a thorough
analysis, this initiative provides a clear path to creating a production
foundation establishing high standards for quality and customer service to
support growth and improved profitability of aerospace interior materials,
specialty composite materials and a variety of industrial materials."
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.
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.
Contact:
Jodi Allen
Investor Relations
973-357-3283
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Cytec Industries Inc via Thomson Reuters ONE
[HUG#1716158]
Unternehmensinformation / Kurzprofil:
Datum: 15.07.2013 - 14:02 Uhr
Sprache: Deutsch
News-ID 278351
Anzahl Zeichen: 5125
contact information:
Town:
New Jersey - NJ
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 122 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Cytec Completes Sale of Industrial Material's Distribution Product Line; Closes Industrial Materials Joint Venture; Announces Plan to Consolidate Ex-Umeco Sites"
steht unter der journalistisch-redaktionellen Verantwortung von
Cytec Industries Inc (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
