7 May 1998: After nearly eight months as an independent chemical company, Solutia Inc. is moving into its third phase by focusing on specialty chemicals, Robert Potter, chairman and chief executive, s…
7 May 1998: After nearly eight months as an independent chemical company, Solutia Inc. is moving into its third phase by focusing on specialty chemicals, Robert Potter, chairman and chief executive, said recently. “We are taking a lot of pride in our first eight months since being spun off 1 September by Monsanto Co.,” Potter said after Solutia“s first annual meeting. Shareholders approved all the proposals in the proxy statement, including salaries and compensation tied to performance goals. Potter said Solutia officials will look for ways to increase earnings per share by at least 10% a year. They will focus more on producing such specialized products as Saflex safety glass and chemical stocks used to make other finished products, such as nylon fibre. With these products, Potter said, “there are higher margins, higher growth rates and more protected markets.” Potter also predicted strong first-quarter earnings, which are to be released in the near future. He said the first phase of Solutia“s new life was devoted to reducing the US$ 1.03 billion debt that Monsanto assigned to it. Solutia has shaved US$ 310 million off its debt, including about US$ 70 million in the first quarter. The second phase was launching a capital development programme, which includes some innovative financing with joint venture partners. John C. Hunter III, president and chief operating officer, said Solutia would cut US$ 200 million from expenses by the end of 2000. This effort will involve job cuts outside the United States, he said. Solutia has also repurchased 2.4 million shares as a way to boost its stock price, Potter said. It has more than 117 million shares outstanding.