Cytec Industries Inc.

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Cytec Announces Fourth Quarter and Full Year 2012 Results


           Cytec Announces Fourth Quarter and Full Year 2012 Results
              Fourth Quarter As-Adjusted Continuing EPS of $0.72;
             Fourth Quarter As-Adjusted Total EPS of $1.10; Up 28%
                 Full Year As-Adjusted Continuing EPS of $3.02
                Full Year As-Adjusted Total EPS of $5.45 up 20%

WOODLAND PARK, N.J., January 31, 2013 -- Cytec Industries Inc. (NYSE: CYT)
announced today net earnings attributable to Cytec for the fourth quarter 2012
of $45.8 million or $0.99 per diluted share.  Net sales from continuing
operations were $470.7 million.    Earnings from continuing operations were
$21.4 million or $0.46 per diluted share.  Earnings from discontinued operations
were $25.1 million or $0.54 per diluted share.  Net earnings attributable to
non-controlling interests (which are associated with the discontinued
operations) were $0.7 million or $0.01 per diluted share.  Included in the
quarter are several special items that total $5.4 million of net charges after-
tax, or $0.11 per diluted share, and are outlined further in this release ($0.26
of net expense attributable to continuing operations and $0.15 of net benefit
attributable to discontinued operations).  Excluding these special items, net
earnings attributable to Cytec were $51.2 million or $1.10 per diluted share,
earnings from continuing operations were $33.5 million or $0.72 per diluted
share, and earnings from discontinued operations were $17.7 million or $0.38 per
diluted share.

Net earnings attributable to Cytec for the fourth quarter of 2011 were $41.6
million or $0.88 per diluted share. Net sales from continuing operations were
$369.5 million. Earnings from continuing operations were $30.0 million or $0.64
per diluted share.  Earnings from discontinued operations were $12.6 million or
$0.26 per diluted share.  Net earnings attributable to non-controlling interests
(which are associated with the discontinued operations) were $1.0 million or
$0.02 per diluted share.   Included in the quarter were several special items
that totaled $1.3 million of net benefit after-tax or $0.02 per diluted share
($0.03 of net expense attributable to continuing operations and $0.05 of net
benefit attributable to discontinued operations).  Excluding the special items,
earnings attributable to Cytec were $40.3 million or $0.86 per diluted share,
earnings from continuing operations were $31.4 million or $0.67 per diluted
share, and earnings from discontinued operations were $8.9 million or $0.19 per
diluted share.

Shane Fleming, Chairman, President and Chief Executive Officer commented, "Our
fourth quarter results reflect the continued solid performance of our Engineered
Materials and In Process Separation segments, delivering higher selling volumes
and prices versus the same period a year ago.   In the Additive Technologies
segment, demand remained weak for certain specialty additive products in North
America and Europe yet we were able to maintain good operating margins.
Overall, our sales in continuing operations were up 27% over the prior year,
mostly due to our Umeco acquisition."

Mr. Fleming continued, "We remain on track for a first quarter close of our
Coating Resins business divestiture and are awaiting final regulatory
approvals."

Cytec Engineered Materials sales increased 9% to $231.0 million; Operating
Earnings decreased to $41.2 million.
In Engineered Materials, selling volumes increased by 5% versus the fourth
quarter 2011 mostly driven by higher build rates in the large commercial
transport and civil rotorcraft sectors.  Higher selling prices increased sales
by 4%.

Operating earnings of $41.2 million were down versus earnings of $41.6 million
in the prior year quarter, primarily due to higher spending in manufacturing to
support the higher growth levels and lower fixed costs absorption resulting from
planned inventory reductions.  These unfavorable impacts were partially offset
by higher selling prices and volumes.  Prior year quarter results also included
approximately $2.7 million of one-time retroactive price increase adjustments.


Cytec's newly acquired business, Umeco, reported sales of $83.3 million and as-
adjusted operating earnings of $3.8 million.
On July 20, 2012, we completed the purchase of our previously announced
acquisition of Umeco Plc.  Sales in the Process Materials (vacuum bagging)
product line were in-line with our expectations and sales of Structural
Materials fell short of our expectations by approximately $4.5 million, mostly
in Europe, and primarily due to sales orders deferred into 2013 and softer
demand in high-end automotive programs.

As-adjusted operating earnings were $3.8 million for the quarter (which excludes
$1.1 million of amortization of inventory step-up) as the impact from lower
selling volumes of structural materials products was partially offset by lower
operating costs.

Cytec In Process Separation sales increased 5% to $94.2 million; Operating
Earnings decreased to $17.4 million.
In Process Separation selling volumes increased by 1% versus the fourth quarter
of 2011. Solid demand for mining products related to copper and other base
metals were partially offset by soft demand in the alumina market as well as
lower sales of phosphine chemicals due largely to a planned maintenance
turnaround in our phosphine plant.  Higher selling prices increased sales by 4%.

Operating earnings were $17.4 million versus $20.4 million in the prior year
quarter, with the shortfall principally due to higher manufacturing costs
associated with the phosphine plant turnaround, targeted inventory control,
increased operating expenses to support future growth in the segment, and a less
favorable product mix.

Cytec Additive Technologies sales decreased 7% to $62.2 million; Operating
Earnings increased to $8.2 million.
In Additive Technologies, overall selling volumes were down 6% versus the fourth
quarter 2011 primarily due to lower demand for specialty additive products in
North America and Europe.  The impact of exchange rates decreased sales by 1%.

Operating earnings of $8.2 million were up versus $7.5 million in the fourth
quarter of 2011.  The higher earnings mostly resulted from a favorable product
mix and lower raw material costs.

Corporate and Unallocated
For the three months and full year ended December 31, 2012, continuing costs
previously allocated to Coating Resins but now included as part of corporate and
unallocated were $16.0 and $66.5 million, respectively.  For the three months
and full year ended December 31, 2011, these costs were $15.9 and $66.0 million,
respectively.


Discontinued Operations
The Coating Resins segment is classified as discontinued operations.   The
following covers Coating Resins sales and earnings as they would have been
reported if they had not been required to be classified as discontinued
operations. Sales were $324.1 million, down 10% in the fourth quarter 2012
versus $361.3 million in the same period 2011. Selling volumes were down 2%
excluding the impact of the divestiture of the pressure sensitive adhesives
business of 5%.  Selling prices were down 1% year over year and the impact of
changes in exchange rates decreased sales by 2%.  Operating earnings increased
to $11.9 million versus operating loss of $0.4 million in the fourth quarter of
2011.

Special Items
In the fourth quarter of 2012 a number of special items were recorded in
continuing operations that resulted in a net pre-tax charge of $24.7 million
($12.1 million expense after-tax) as follows:

  * Included in Corporate Unallocated as Research and process development
    expense is a pre-tax charge of $0.4 million ($0.2 million after-tax or $0.00
    per diluted share) related to incremental accelerated depreciation related
    to the sale-leaseback transaction of our research and development facility
    in Stamford, Connecticut in the third quarter of 2011.
  * Included  in Corporate Unallocated as Administrative and general expense is
    a pre-tax charge of $1.2 million ($1.0 million after-tax or $0.02 per
    diluted share) related to Umeco acquisition costs.  For tax purposes, these
    costs will be predominantly capitalized as part of the transaction.
  * Included in Corporate Unallocated, principally in Administrative and general
    and Selling and technical services, is pre-tax net restructuring charges of
    $5.3 million ($3.6 million after-tax or $0.08 per diluted share) primarily
    related to initiatives to reduce stranded costs resulting from the sale of
    Coating Resins  and personnel reductions in the acquired Umeco business.
  * Included in the Umeco segment as Manufacturing cost of sales is a pre-tax
    charge of $1.1 million ($0.7 million after-tax or $0.01 per diluted share)
    related to a purchase accounting adjustment for the difference between
    assigning a fair value to the acquired Umeco finished goods inventory at the
    date of acquisition and normal manufacturing cost.
  * Included in (Loss)/Gain on sale of assets is a pre-tax loss of $16.7 million
    ($10.5 million after-tax or $0.23 per diluted share) related to the
    aforementioned sale-lease back transaction in Stamford.  The recognition of
    the sale was previously deferred due to an open environmental obligation.
    The transaction was recognized as a sale upon the satisfactory completion of
    our obligation in the fourth quarter of 2012, and as a result, we recognized
    the loss for the remaining excess carrying value.
  * Included in Income tax (benefit)/provision is $3.9 million of income tax
    benefit ($0.08 per diluted share) related to a revision of our previously
    accrued estimated income tax liability on the unrepatriated earnings of
    certain foreign subsidiaries as a result of the intended sale of our Coating
    Resins segment. Such revision is primarily due to changes in the tax
    attributes of certain foreign subsidiaries.

In addition, a number of special items were recorded to discontinued operations
that resulted in a net pre-tax benefit of $11.1 million ($6.7 million benefit
after-tax).

In the fourth quarter of 2011 a number of special items were recorded in
continuing operations that resulted in a net pre-tax charge of $2.2 million
($1.4 million expense after-tax) as follows:

  * Included in Corporate and Unallocated principally in Manufacturing cost of
    sales is a pre-tax restructuring charge of $0.1 million ($0.1 million after-
    tax or $0.00 per diluted share).
  * Included in Corporate Unallocated as Research and process development
    expense is a pre-tax charge of $0.7 million ($0.4 million after-tax or $0.01
    per diluted share) related to incremental accelerated depreciation related
    to the sale-leaseback transaction of our research and development facility
    in Stamford, Connecticut in the fourth quarter of 2011.
  * Included in Manufacturing cost of sales and Other expense, net is a pre-tax
    charge of $1.4 million ($0.9 million after-tax or $0.02 per diluted share)
    related to adjustments to environmental liabilities at our active and
    inactive locations.

In addition, a number of special items were recorded to discontinued operations
that resulted in a net pre-tax benefit of $3.9 million ($2.7 million benefit
after-tax).

Income Tax (Benefit)/Expense
The income tax benefit related to continuing operations for the fourth quarter
of 2012 was $4.1 million, compared with a tax expense of $7.7 million in the
fourth quarter of 2011.  Included in the income tax benefit for the fourth
quarter of 2012 is a tax benefit of $3.1 million or $0.07 per diluted share
related to the expiration of the statute of limitations in certain international
tax jurisdictions. Excluding this item and the impact from the special items
previously noted, the overall underlying annual tax rate for the fourth quarter
of 2012 was 30.6% versus the underlying annual tax rate in the fourth quarter of
2011 of 28.6%.  The overall underlying annual tax rate for the quarter of 30.6%
is lower than the 31.5% estimated rate at the end of the third quarter of
2012.  The favorable impact of the lower rate related to the first nine months
of 2012 was about $1.3 million or $0.03 per diluted share.

Cash Flow
David Drillock, Vice President and Chief Financial Officer commented, "On a
continuing basis, our average net working capital days during the quarter were
down 12 days at 83 days compared to the third quarter of 2012.  Average accounts
receivable and payable days were up 1 day and 2 days, respectively, compared
with the third quarter of 2012.  Average inventory days were down 10 days to 82
days compared with the third quarter of 2012, mostly due to aforementioned
inventory reduction in Engineered Materials and also in In Process Separation.
"Capital spending for continuing operations in the quarter was $61million with
majority of the spending attributable to our growth platforms. Our expectation
for capital spending for the full year 2013 is approximately $300 million,
mostly related to previously announced manufacturing capacity expansions in the
Engineered Materials and In Process Separation segments."


2013 Outlook
Mr. Fleming commented, "2012 was a transformational year for Cytec and we
continue to make excellent progress on the Umeco integration and Coating Resins
separation activities.  As we mentioned previously, we are planning for a change
in our business segment reporting structure to align our composite material
resources, assets and strategy with target end markets (Aerospace and
Industrial).  Our guidance for 2013 full year adjusted diluted earnings per
share for continuing operations is in a range of $4.70 to $4.95 on sales from
continuing operations of approximately $2.0 billion.  This guidance assumes a
March 31(st) closing of the Coating Resins sale.  The timing of the closing will
impact our share repurchase plan, actions on stranded cost reductions, and
reallocation of remaining stranded costs back to the operating segments.  Given
a first quarter close of the Coating Resins transaction, we plan to provide
detailed 2013 guidance under the new business segments when we release our first
quarter results in April."

"Overall, I expect 2013 to be a year of continued growth across our portfolio of
businesses.   We expect Engineered Materials growth of about 10% with estimated
annual sales in a range of $975 million to $1,005 million, driven by build rates
in the large commercial transport and business jet sectors.  Expected growth in
the industrial composites markets will be moderated by macroeconomic conditions,
particularly in Europe.   Our estimated annual sales for the Umeco business are
in the range of $315 million to $335 million. We expect In Process Separation
growth of approximately 10% with estimated annual sales in the range of $410
million to $430 million, supported by increased base metal demand and the
expanded use of our new technologies as we continue to penetrate new markets and
geographies.  We anticipate modest growth in Additive Technologies of about
3-4% with an estimate sales range of $275 million to $285 million as the
business still faces macroeconomic headwinds in certain markets but has the
ability to grow in the differentiated product lines.  Therefore, despite the
modest growth outlook for the global economy in 2013, I remain optimistic about
Cytec's growth potential given our new company profile and the opportunities in
our composites and specialty chemicals businesses.  We remain focused on
executing our strategic initiatives to deliver growth and create value for our
shareholders."

Full Year Results

Net earnings attributable to Cytec for the full year ended December 31, 2012
were $188.0 million or $4.02 per diluted share on net sales from continuing
operations of $1,708.1 million. Earnings from continuing operations were $91.3
million or $1.95 per diluted share.  Earnings from discontinued operations were
$98.8 million or $2.11 per diluted share.  Net earnings attributable to
noncontrolling interests (which are associated with the discontinued operations)
were $2.1 million or $0.04 per diluted share.


Special Items
During the full year ended December 31, 2012, a number of special items were
recorded in continuing operations that resulted in net pre-tax charges of $55.4
million ($49.9 million after-tax) as follows:
  * Included in Corporate and Unallocated as Research and process development is
    a pre-tax charge of $2.5 million ($1.5 million after-tax or $0.03 per
    diluted share) related to incremental accelerated depreciation related to
    the sale-leaseback transaction of our research and development facility in
    Stamford, Connecticut in the third quarter of 2011.
  * Included in Corporate and Unallocated as Administrative and general expense
    is a pre-tax charge of $8.4 million ($8.2 million after-tax or $0.18 per
    diluted share) related to Umeco acquisition costs.  For tax purposes, these
    costs will be predominantly capitalized as part of the transaction.
  * Included in Corporate and Unallocated principally in Administrative and
    general and Manufacturing cost of sales are pre-tax net restructuring
    charges of $21.2 million ($14.6 million after-tax or $0.31 per diluted
    share) primarily related to initiatives to reduce stranded costs resulting
    from the sale of Coating Resins and personnel reductions in the acquired
    Umeco business.
  * Included in the Umeco segment as Manufacturing cost of sales is a pre-tax
    charge of $5.6 million ($3.8  million after-tax or $0.08 per diluted share)
    related to purchase accounting for the difference between assigning a fair
    value to the acquired Umeco finished goods inventory at the date of
    acquisition and normal manufacturing cost.
  * Included in Other expense, net is a pre-tax charge of $1.1 million ($0.7
    million after-tax or $0.01 per diluted share) related to an exchange loss
    recorded in connection with an acquired Umeco intercompany loan which was
    settled after the acquisition.
  * Included in the Income tax (benefit)/provision is $10.6 million of income
    tax expense ($0.23 per diluted share) related to the sale process of our
    Coating Resins segment.  Accounting rules require establishing a tax
    liability on the unrepatriated earnings of foreign subsidiaries if it is
    management's intention to no longer permanently reinvest such earnings.  As
    a result of the intended sale of Coatings Resins, management's intentions
    changed with regard to a portion of the unrepatriated earnings of certain
    foreign subsidiaries.  Therefore, included in the $10.6 million is $3.1
    million of tax expense incurred due to the repatriation of certain earnings
    during 2012 and an estimated $7.5 million to be incurred on the future
    repatriation of other earnings, subsequent to the sale of Coating Resins.
  * Included in (Loss)/Gain on sale of assets is a pre-tax loss of $16.7 million
    ($10.5 million after-tax or $0.23 per diluted share) related to the
    aforementioned sale-lease back transaction in Stamford.  The recognition of
    the sale was previously deferred due to an open environmental obligation.
    The transaction was recognized as a sale upon the satisfactory completion of
    our obligation in the fourth quarter of 2012, and as a result, we recognized
    the loss for the remaining excess carrying value.


 In addition, a number of special items were recorded in discontinued operations
that resulted in a net pre-tax benefit of $4.4 million ($17.3 million expense
after-tax).

 Excluding these special items, net earnings attributable to Cytec were $255.2
million or $5.45 per diluted share, earnings from continuing operations were
$141.2 million or $3.02 per diluted share, and earnings from discontinued
operations were $114.0 million or $2.43 per diluted share.

Net earnings for the full year ended December 31, 2011 were $207.8 million or
$4.24 per diluted share on net sales from continuing operations of $1,415.9
million. Earnings from continuing operations were $84.0 million or $1.71 per
diluted share.  Earnings from discontinued operations were $126.9 million or
$2.59 per diluted share.  Net earnings attributable to non-controlling interests
(which are associated with the discontinued operations) were $3.1 million or
$0.06 per diluted share.

For the full year ended December 31, 2011, a number of special items were
recorded in continuing operations that resulted in net pre-tax charges of $4.0
million ($2.4 million expense after-tax) as follows:
  * Included in Corporate and Unallocated principally in Manufacturing cost of
    sales is a pre-tax net restructuring charge of $0.8 million ($0.5 million
    after-tax or $0.01 per diluted share).
  * Included in Corporate and Unallocated as Research and process development is
    a pre-tax charge of $0.7 million ($0.4 million after-tax or $0.01 per
    diluted share) related to incremental accelerated depreciation related to
    the sale-leaseback transaction of our research and development facility in
    Stamford, Connecticut in the third quarter of 2011.
  * Included in (Loss)/Gain on sale of assets is a pre-tax gain of $3.3 million
    ($2.1 million after-tax or $0.04 per diluted share) related to a sale of
    land at our manufacturing site in Colombia which was shutdown in the second
    half of 2009.
  * Included primarily in Other expense, net is a pre-tax charge of $5.8 million
    ($3.6 million after-tax or $0.07 per diluted share) related to an increase
    in the environmental liability at inactive sites for updated estimates of
    future remedial costs.

In addition, a number of special items were recorded to discontinued operations
that resulted in a net pre-tax charge of $16.3 million ($11.4 million expense
after-tax).

Excluding these special items, net earnings attributable to Cytec were $221.6
million or $4.52 per diluted share, earnings from continuing operations were
$86.4 million or $1.76 per diluted share, and earnings from discontinued
operations were $135.2 million or $2.76 per diluted share.

Income Tax Expense
Income tax expense related to continuing operations for the full year 2012 was
$40.1 million, compared with a tax expense of $30.3 million in the full year
2011.  Included in income tax expense for 2012 is a tax benefit of $11.6 million
or $0.25 per diluted share related to the reversal of tax reserves primarily due
to the settlement of U.S. tax audits and the expiration of the statute of
limitations in certain international tax jurisdictions.

Investor Conference Call to be Held on Friday, February 1, 2013 at 11:00am ET
Cytec will host their fourth quarter earnings release conference call on
February 1, 2013 at 11:00am ET.  The conference call will also be simultaneously
webcast for all investors from Cytec's website.  Select the Investor Relations
page to access the live webcast.

Use of Non-GAAP Measures
Management believes that net earnings from continuing operations attributable to
Cytec and earnings from discontinued operations, excluding special items and
diluted earnings per share (continuing operations attributable to Cytec and
earnings from discontinued operations) excluding special items, which are non-
GAAP measurements, are meaningful to investors because they provide a view of
the Company with respect to ongoing operating results. Special items represent
significant charges or credits that are important to an understanding of the
Company's overall operating results in the period presented. Such non-GAAP
measurements are not recognized in accordance with generally accepted accounting
principles (GAAP) and should not be viewed as an alternative to GAAP measures of
performance. A reconciliation of GAAP to non-GAAP measurements can be found at
the end of this release.

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


Q4 2012 Financial Tables:
http://hugin.info/146098/R/1674816/545445.pdf



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#1674816]



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