Cytec uses Umeco acquisition to position company as technology leader

By Sahara Marte

New York, July 20 - Cytec Industries Inc. plans to use its newest acquisition to grow value for stockholders by strengthening its technological advantages, Shane Fleming, president and chief executive officer, said during the company's second quarter conference call.

"I see tremendous potential for targeted industrial markets," he added. "This acquisition will leverage our technology leadership position in advanced composite materials into adjacent markets while strengthening our position in aerospace."

The company recently acquired Umeco plc, a supplier of advanced composites and processed materials for both the aerospace market and the industrial market.

By the end of the year, Cytec plans to be repositioned as a higher growth, higher margin, special-material and chemical company poised to deliver long-term value for all its stakeholders, said Fleming.

The company's gross profit increased 28% to $132.7 million for the second quarter of 2012, while gross margin was 32.8%.

Margin expansion was supported by an improved product mix and lower spending.

"I'm thrilled with our performance in the second quarter," stated Fleming.

Sales increased 16% to $404 million, due to higher volumes and higher selling prices, he said.

Cytec had capital expenditure of $25 million during the quarter and expects $200 million by the end 2012.

Cytec is a Woodland Park, N.J.-based specialty chemicals and materials technology company.

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