Cytec Takes an Earnings Charge

Cytec Industries is reaffirming its second-quarter earnings expectation of 60 to 65 cents per share. The firm's outlook includes a 12-cent-per-share ($6.1 million) charge stemming from settlement of several environmental and toxic tort lawsuits relating to a plant operated by the former American Cyanamid before 1963. CEO David Lilley says, "Notwithstanding our strong defenses, we came to the conclusion that settlement was the best option for Cytec and its shareholders." Cytec was spun off from Cyanamid in 1993. Of the financial forecast, Lilley says second-quarter earnings in specialty chemicals and materials have improved because of stronger demand, principally in the U.S. and Europe.