The new reporting structure will provide greater clarity on the new strategic focus of the company. As a result, Cytec now has five reportable operating segments.
The Cytec Specialty Chemicals business will now consist of three operating segments: Coating Resins, Additive Technologies, and In Process Separation. Coating Resins, previously called Surface Specialties, consists of the Liquid Coatings Resins, Radcure, and Powder Coating Resins product lines. Now included in Liquid Coating Resins are our Urethane Resins products, previously part of the former Performance Chemicals segment. Additive Technologies is comprised of the Polymer Additives and Specialty Additives product lines, previously included in the former Performance Chemicals segment. In Process Separation is comprised of the Mining Chemicals and Phosphine Chemicals product lines, also previously included in the former Performance Chemicals segment.
Engineered Materials is comprised of Advanced Composites, Carbon Fiber, and Structural Film Adhesives, and now includes the Pressure Sensitive Adhesives and Formulated Resins product lines which were both previously included in the former Performance Chemicals segment. These additional product lines incorporated into the Engineered Materials segment will provide the foundation for a High Performance Industrial Materials market focus. The Building Block Chemicals segment remains unchanged.
Shane Fleming, Chairman, President, and Chief Executive Officer said, “While 2009 continues to be challenging year for us, I am confident that the realignment of our operating segments is the right operating model to implement our long-term strategy more effectively. We are focusing on building on our core technology competencies in high growth markets, which will strengthen our market leadership position in our growth platforms and create greater shareholder value when the economy begins to recover.”
A summary of our new reportable segments is as follows:
Coating Resins – Liquid Coating Resins, Radcure, Powder Coating Resins
Additive Technologies – Polymer Additives, Specialty Additives
In Process Separation – Mining Chemicals, Phosphine Chemicals
Engineered Materials – Advanced Composites, Carbon Fibers, Adhesives
Building Block Chemicals – Acrylonitrile and Hydrocyanic Acid, Melamine, Sulfuric Acid
Segment results for the years ended December 31, 2008 and 2007, each of the four quarters for the years 2008 and 2007 and the first quarter ended March 31, 2009 and 2008 reflecting this change are provided at the end of this news release. We have also filed a current report on Form 8-K dated June 3, 2009 and attached as exhibits to such report updated items from our Annual Report on Form 10-K for the year ended December 31, 2008 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 that reflect the new segment reporting structure. There is no change to our previously reported Consolidated Statements of Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, or Consolidated Statements of Stockholder’s Equity for the periods reported therein.