Solutia Reports First Quarter 2009 Results

German subsidiary obtains $74 million term loan 2009 First Quarter Highlights • Net sales decreased to $339 million from $517 million in the first quarter of 2008 • Adjusted EBITDA decreased to $56 million from $95 million in the first quarter of 2008 • Saflex and Technical Specialties segments report improved Adjusted EBITDA margins • The Company’s cash generation in the quarter allowed for debt reduction of $50 million • Diluted loss per share from continuing operations of $.04; Adjusted loss per share of $.05 • Maintaining Adjusted EBITDA guidance for the year of $325 million - $350 million • Increasing 2009 target for cash from continuing operations less capital spending to $50 million - $100 million New Term Loan On May 5, 2009, a Solutia wholly owned German subsidiary entered into a $74 million, two-year senior unsecured term loan facility.

The proceeds were used to pay down amounts under Solutia’s credit facility. Note: See reconciliation tables below for adjustments made to GAAP and discussion of items affecting results. Consolidated Results from Continuing Operations

Solutia Inc. (NYSE: SOA) on May 5, 2009 reported a consolidated loss from continuing operations of $4 million for the first quarter of 2009, compared to income of $1,234 million for the same period in 2008. These results were impacted by certain events affecting comparability (detailed below) totaling a net gain of $1 million in 2009 and a net gain of $1,210 million in 2008. After adjusting for these items in both periods, continuing operations loss of $5 million in the first quarter of 2009 decreased from income of $24 million in the first quarter of last year. This decline was primarily due to the weakened demand profile, higher depreciation and amortization due to fresh-start accounting, and higher stock compensation expense partially offset by income tax benefits. For the quarter, Solutia posted a diluted loss per share from continuing operations of $.04 and as adjusted a loss per share of $.05.

Consolidated EBITDA from continuing operations for the first quarter decreased to $51 million from $73 million in the first quarter of 2008 on net sales of $339 million and $517 million, respectively. After taking into consideration adjustments (as detailed below in the consolidated and segment sales, EBITDA and Adjusted EBITDA table), Adjusted EBITDA decreased to $56 million from $95 million.

"Demand in the first quarter was negatively impacted by the difficult macro-economic conditions affecting the global markets. However, we were able to greatly offset the impact of these conditions through the decisive actions we began to implement in the fourth quarter of last year to reduce our operating costs, working capital levels and capital expenditures. In total, our efforts resulted in an improvement in our liquidity over the course of the first quarter," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "While we expect continued softness in demand throughout 2009, we do expect modest volume improvement in comparison to our first quarter levels. Further, we have taken actions to further reduce costs over the remainder of the year."

Quinn added, "We also are pleased to have closed the $74 million term loan facility at one of our German subsidiaries and we continue to work toward the closure of the sale of our nylon business within the second quarter. These actions will improve our strategic positioning and bolster liquidity."

Read the full release.

600450 Solutia Reports First Quarter 2009 Results
Date: 13 May 2009
Source: Solutia Inc.

See more news about:

See more from these topics:

Others also read

Keepsafe Maximum Glass preserves aesthetic appeal of the hotel while providing protection from hurricanes
Saflex® Earth Tones Collection Soothing Colors for Today’s Architectural Designs KINGSPORT – Eastman Chemical Company (NYSE:EMN), manufacturer of Saflex® PVB interlayers, announces a new color collection designed to give laminated glass — and thereby any architectural space — greater aesthetics, warmth, and serenity.
When tenants refuse to renew their leases because of heat and glare problems, property owners and managers know they have a severe problem and must address it immediately.
Eastman Chemical Company (NYSE:EMN) is proud to announce that Saflex® DG structural interlayer has been awarded the General Technical Approval (Allgemeine Bauaufsichtliche Zulassung or AbZ) by the German Institute for Building Technology (Deutschen Institut für Bautechnik -DIBt).
High performance window film as applied to commercial and residential properties is so advanced today that you can address solar control, safety, and high energy savings all in one film, according to Bob Kerr, president of Epic Glass Tinting.
Starting today, Eastman Chemical Company (NYSE: EMN) will showcase advanced automotive glazing technologies at its booth during the 2013 Japanese Society of Automotive Engineering (JSAE) World Congress, held May 22 through May 24 in Yokohoma, Japan.

Add new comment