Specialty materials and chemicals company
Cytec Industries Inc.
) has been chosen as the preferred advanced materials supplier
for the Leading Edge Aviation Propulsion (LEAP) high-bypass
turbofan engine program. The LEAP engine program has been
developed by CFM International, a joint venture between Snecma
(Safran) and GE Aviation.
Cytec's advanced composite materials to be used in the LEAP-1
engine program are expected to reduce the weight of an aircraft
by 500 pounds, fuel consumption by 15%, nitrogen oxide emissions
by 50% and noise by 15 decibels. The next-generation LEAP-1
engines have already been selected for the C919 program, COMAC's
new single-aisle commercial jet and can be opted for Airbus's
Cytec, who has already bee been selected for Leap-1A and
Leap-1C applications, now plans to expand its production
capacities in Europe and the U.S. in order to support the LEAP
engine program. Cytec makes advanced prepregs, resins and
adhesives that are broadly used in aerospace and high performance
industrial applications. Cytec's aggregate products also include
a range of process materials.
Cytec's CYCOM PR520 RTM resin system will be used in the
LEAP-1 engine through its fan blades and containment cases. CYCOM
PR520 is uniquely designed with superior damage tolerance and
good strain characteristics that are primarily required for
structure aerospace applications. CYCOM PR520's characteristics
also help in assuring full fiber wetting and broadening the resin
infusion processing window.
Cytec reported its first-quarter 2013 results on Apr 18. The
company reported adjusted (excluding special items) earnings from
continuing operations of 75 cents per share in the quarter,
missing the Zacks Consensus Estimate of 86 cents.
CYTEC INDS INC (CYT): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
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Cytec posted a net profit of $33.5 million (or 73 cents per
share) in the reported quarter, down roughly 37% from net
earnings of $53.1 million (or $1.14 a share) recorded in the
year-ago quarter. Revenues increased roughly 26% year over year
to $477.4 million in the reported quarter, but missed the Zacks
Consensus Estimate of $494 million.
Cytec cut its adjusted diluted earnings per share estimate for
2013 to a range of $4.50 to $4.75 from the previous guidance of
$4.70 to $4.95. The company remains optimistic about both its
short-term and long-term growth opportunities despite there being
some risk associated with the global economy, which would mostly
have a negative impact on the Industrial Materials segment.
Cytec currently maintains a Zacks Rank #3 (Hold).
Other companies in the chemical industry having favorable Zacks
Shin-Etsu Chemical Co., Ltd.
PPG Industries Inc.
). While Shin-Etsu Chemical and Methanex hold a Zacks Rank #1
(Strong Buy), PPG Industries retains a Zacks Rank #2 (Buy).