Cytec Reports Cost Reduction Initiative for Industrial Materials Unit, Reduces 55 Employees, Expecting Pretax Charge ~$2M

Cytec Industries Inc.

announced today its initiative to implement cost reductions in the Industrial Materials business segment to address the current market conditions and better position the company for profitable growth.     The plan includes immediate headcount reductions of approximately 55 people,  through modification of shift patterns within various operations, centralization of logistics and planning activities, and closure of a small site in Beelitz, Germany.   Annual cost savings are estimated to be $5.5 million, and this rate should be reached in the second quarter of 2014.   As a result of the above, Cytec will record a pre-tax restructuring charge in the third quarter of 2013 of approximately $2 million related mainly to severance costs with additional modest restructuring charges to occur in 2014.