11 February 1999: US-based speciality chemicals maker Solutia Inc., affected by bigger rivals, aims to increase annual revenues to US$ 5 billion from its current level of US$ 2.8 billion in the next f…
11 February 1999: US-based speciality chemicals maker Solutia Inc., affected by bigger rivals, aims to increase annual revenues to US$ 5 billion from its current level of US$ 2.8 billion in the next few years, the company“s chairman said recently. “Our major customers are becoming more and more global players,” Robert Potter said. “There is something to be said for size,” he added. “A lot of the more global players tend to be larger than we are, arbitrarily US$ 5 billion in revenue or larger. We need to at least address that subject of “globality“ and size.” Potter, who announced he would step down as chief executive officer of St. Louis-based Solutia, effective 28 April, said Solutia“s long-term goal is to raise revenues by building up existing businesses, and acquiring small to mid-sized companies. “We are, and have been, in pursuit of some small to mid-sized acquisitions that would be bolt-on acquisitions to existing business,” he said. With a growth plan in place for the next few years, Potter said the time was right to step down as chief executive officer. John Hunter, Solutia“s president and chief operating officer, will become CEO in April. “A younger CEO thinks longer term,” said Potter, 60, in a letter to employees. “It has been my observation that the longer a CEO stays the CEO, his thinking and actions become shorter-and shorter-term. With Solutia at such a critical juncture, we need a CEO who is focused on building for the longterm, and we have that now with John.” Potter has served as CEO of Solutia since its spin-off from Monsanto Co. in 1997, and had been head of the unit when it was part of Monsanto since 1986. Potter said he will continue as chairman, and has not set a date for his retirement. When the time comes, however, Potter said it was his intent that Hunter succeed him. Recently, Solutia said its fourth quarter earnings were US$ 55 million, or US$ 0.46 a share, essentially flat with last year“s US$ 55 million, or US$ 0.43 a share, excluding a US$ 46 million charge.