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America: Solutia posts higher Q2 sales, profit

https://www.chemnet.com   Jul 28,2010
Solutia Inc. said its second-quarter profit more than tripled from last year’s period, as sales rose more than 26 percent.


For the quarter ended June 30, the company reported net income of $41 million compared to net income of $10 million in last year’s quarter, primarily due to increased sales volumes across all segments, partially offset by higher raw material costs and higher interest expense.


Solutia’s net sales in the recent quarter were $518 million compared to $410 million in the quarter ended June 30, 2009.


During the recent quarter, Solutia bought Novomatrix a Singapore-based maker of window films for the automotive and architectural markets, for $73 million. Solutia also bought the Vista solar product business (now called Vistasolar) from German firm Etimex Holding for $294 million.


The company had said in April that it will stop making a key ingredient for a rubber compound used in making tires, called primary accelerators, in the second half of this year. Solutia said Monday that it took a $38 million charge in the second quarter for restructuring costs related to closing that business.


Solutia said it expects steady second-half sales volume with a normal fourth-quarter seasonal slowdown. The company said it expects average selling prices in the second half of the year to be consistent with the second quarter, and full-year revenue growth of from 10 percent to 15 percent versus last year.


St. Louis-based Solutia Inc. (NYSE: SOA), led by Chairman, President and Chief Executive Jeffry Quinn, develops specialty chemicals, fibers, fluids and other performance products.
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