Cytec to take quarterly charge to settle lawsuits
June 29, 2004
According to Reuters, Cytec Industries Inc. on Tuesday said it will take a charge to settle several lawsuits, but expects to meet its quarterly profit forecast on stronger-than-expected demand at its specialty chemical and specialty material segments.The West Paterson, New Jersey, specialty chemicals maker, whose shares rose 1.5 percent to a one-year high, said it will take a pretax charge of $6.1 million, or 12 cents per share after tax, to settle several environmental and toxic tort lawsuits. The lawsuits are all related to a manufacturing site operated by the former American Cyanamid Co. before 1963. Cytec was spun off from American Cyanamid in 1993. Cytec decided to settle the lawsuits, even though it had to pay more money than anticipated, because "we came to the conclusion that settlement was the best option for Cytec and its shareholders," according to a statement from Chairman, President and Chief Executive David Lilley.