US chemicals group Solutia Inc. has said its fourth-quarter 2000 earnings before charges would fall below market expectations because high natural-gas prices and declining demand have pushed up costs …
US chemicals group Solutia Inc. has said its fourth-quarter 2000 earnings before charges would fall below market expectations because high natural-gas prices and declining demand have pushed up costs and slowed sales. The company said it will report earnings of about 12 cents per diluted share and also announced that it is cutting 700 to 800 full-time jobs through natural losses and lay-offs, reducing its contractors by about 400 and generally streamlining operations. The restructuring should be completed during 2001. The company hopes to thus save US$ 100 million a year, with half of the savings achieved in 2001 and the remainder in 2002. In connection with the restructuring, Solutia said it will record one-time charges of US$ 90-100 million after taxes in the fourth quarter.