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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 17, 1998
Cytec Industries Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-12372 22-326866
(State or other jurisdiction (Commission (IRS Employee
of incorporation) File Number) Identification No.)
Five Garret Mountain Plaza
West Paterson, NJ 07424
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 973-357-3100
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(Former name or former address, if changed since last report)
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5. Other Events
On September 17, 1998, Cytec Industries Inc. (the "Company") issued a press
release announcing that it expects third and fourth quarter 1998 and full year
1999 diluted earnings per share to fall short of analysts' consensus estimates.
A copy of such press release is filed herewith and incorporated by reference
herein. A number of the statements made by the Company in the press release may
be regarded as "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995.
Forward-looking statements include, among others, statements concerning the
Company's outlook for 1998, the accretiveness of acquisitions, pricing trends
and forces within the industry, the completion dates of, and expenditures for,
capital projects, expected sales, cost reduction strategies and their results,
the effect of the Asian economic slowdown, long-term goals of the Company,
possible further restructurings, and other statements of expectations, beliefs,
future plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts.
All predictions as to future results contain a measure of uncertainty and
accordingly, actual results could differ materially. Among the factors that
could cause a difference are: changes in the general economy; changes in demand
for the Company's products or the costs and availability of its raw materials;
the actions of competitors; the success of our customers; technological change;
changes in employee relations, including possible strikes; government
regulations; litigation, including its inherent uncertainty; difficulties in
plant operations and materials transportation; environmental matters;
difficulties in completing remediation of year 2000 issues by the Company, its
suppliers and customers; and other unforeseen circumstances. A number of these
factors are discussed in the Company's filings with the Securities and Exchange
Commission.
Item 7. Financial Statement and Exhibits
Exhibits filed as part of this report are listed on the Exhibit Index located on
page 4 of this report.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Cytec Industries Inc.
(Registrant)
Date September 17, 1998 By: /s/ J.P. Cronin
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J. P. Cronin
Executive Vice President and
Chief Financial Officer
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Exhibit Index
Exhibit Number Description
99 Press release dated September 17, 1998
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Exhibit 99
[Cytec letterhead]
Contacts:
* David Drillock (analyst contact)
(973) - 357-3249
* George Yuro
(973) - 357-3319
Immediate
Cytec Issues Earnings Warning
West Paterson, New Jersey (September 17, 1998) -- Cytec Industries Inc. (NYSE:
CYT) announced today that it expects third and fourth quarter 1998 and full year
1999 diluted earnings per share to fall short of analysts' consensus estimates.
The third and fourth quarter diluted earnings per share are anticipated to be
about 15 to 20% below the current consensus estimates of equity analysts as
reported by First Call. The projected full year 1999 diluted earnings per share
are expected to fall short of analysts' consensus estimates as reported by First
Call by about 10 to 15%.
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David Lilley, President and Chief Executive Officer commented: "A variety of
factors have adversely affected our earnings outlook for the rest of 1998. We
have been surprised by the unexpectedly large and recent reduction in North
American demand for our Aerospace Products. The worsening economic situation,
particularly in the Asia-Pacific region and in Latin America has reduced demand
for our Specialty Chemical products, and the adverse impact of currency
translation and pricing continues. We are experiencing both reduced demand and
lower prices for our Building Block chemicals, and operating difficulties at our
major facility in Louisiana have created extra costs and curtailed output of
certain products. It now appears likely that these market trends will continue
in 1999. In an unfortunate confluence of events, all three product lines have
been affected unfavorably, a situation Cytec is ordinarily buffered from by the
diversity of its end markets."
Lilley added: "For Cytec, this performance is not acceptable. A number of
changes are already under way. For example, we recently realigned our operating
management to focus more clearly on fundamental issues that need to be addressed
in today's changing business environment. We are accelerating the
rationalization of our cost structure to improve efficiency. To prevent the
recurrence of production disruptions that have recently plagued us, we have
renegotiated the power supply contract in Louisiana to reduce the potential for
curtailments. In addition to the improvement projects we have in place already,
in the next few months we will be looking for other ways to increase
efficiencies to help us return to the earnings growth track we were on earlier."
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Lilley further stated: "These recent difficulties do not change our
determination to achieve Cytec's previously stated goals. We are committed to
becoming a premier specialty chemicals company."
Company Profile
Cytec Industries Inc. is a vertically integrated, specialty chemicals company
that focuses on value-added specialty products. The Company develops,
manufactures and markets specialty chemicals, specialty materials and building
block chemicals serving a broad group of end users, including the aerospace,
plastics, coatings, mining, paper, water treatment and automotive industries.
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.
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