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America: Solutia Reports Second Quarter 2010 Results

https://www.chemnet.com   Jul 29,2010
ST. LOUIS, /PRNewswire-FirstCall/ --
 
Second Quarter Highlights
 
-- Net sales of $518 million; an increase of 26% over the same period last year
-- Record Adjusted EBITDA of $134 million; an increase of 40% over the same period last year
-- Adjusted diluted EPS from continuing operations of $.44
-- Raising 2010 free cash flow guidance
-- Novomatrix and Vistasolar(R) EVA acquisitions completed, integration underway
 
Note: See reconciliation tables below for adjustments made to GAAP financial measures and discussion of items affecting results.
 
"In the second quarter, Solutia once again delivered strong financial performance through growth in emerging markets, a continued focus on operational excellence, and adherence to a culture of cost discipline," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "During the quarter, focusing on products that serve the renewable energy market, positioning our diverse set of businesses to capitalize on improving demand, and completing two highly synergistic acquisitions also strengthened Solutia's global leading market positions across our entire portfolio."
 
 
Consolidated Results from Continuing Operations
 
Solutia Inc. (NYSE: SOA) today reported net income from continuing operations of $24 million for the second quarter 2010, compared to $24 million for the same period in 2009. These results were impacted by certain events affecting comparability (detailed below) resulting in a net charge of $29 million in 2010 and a net charge of $8 million in 2009. As described further in the table below, the 2010 events were primarily related to the $38 million charge associated with the previously announced closure of the Primary Accelerators operation. After adjusting for these items, income from continuing operations was $53 million in the second quarter of 2010, an increase of $21 million or 66 percent versus the second quarter of 2009. This significant year-over-year earnings improvement was primarily due to increased sales volumes across all reporting segments, partially offset by higher raw material costs and higher interest expense, principally from current quarter non-cash mark-to-market losses on our interest rate swap agreements.
 
Adjusted EBITDA for the second quarter increased to $134 million from $96 million compared to the same period in 2009 (as detailed below in consolidated and segment sales, EBITDA and adjusted EBITDA table). Consolidated EBITDA for the second quarter was flat at $90 million compared to the same period in 2009.
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