Solutia reports third quarter 2011 results

Solutia Inc. has reported net sales for the third quarter of 2011, an increase of USD 8 million or 2% from the same period in 2010, while – adjusting for divested businesses – sales increased USD 24 million or 5%, primarily due to favourable currency exchange rate fluctuations.

Solutia Inc. has reported net sales for the third quarter of 2011 of USD 519 million, an increase of USD 8 million or 2% from the same period in 2010. Adjusting for divested businesses, sales increased USD 24 million or 5%, primarily due to favourable currency exchange rate fluctuations. Reported income from continuing operations attributable to Solutia was USD 75 million for the third quarter 2011, up USD 29 million from the same period in 2010. Both periods were impacted by certain events affecting comparability, which resulted in a net after-tax gain of USD 20 million in 2011, and a net after-tax charge of USD 4 million in 2010. Excluding these items, Adjusted Earnings increased USD 5 million. Adjusted EBITDA in the third quarter of 2011 came to USD 121 million, a decrease of USD 9 million compared to the same period in 2010. Adjusted EPS totalled USD .45, up USD .03 or 7% from the same period in 2010 despite the lower adjusted EBITDA primarily due to lower interest expense and a lower tax rate.
The Advanced Interlayers segment’s third quarter 2011 net sales totalled USD 227 million, an increase of USD 15 million or 7% from the same period in 2010. Adjusted EBITDA decreased USD 1 million to USD 47 million for the third quarter of 2011 compared to the prior year period. This earnings decrease was primarily due to higher raw material costs, partially offset by improved selling prices, improved product mix and lower annual incentive compensation expense.
“The third quarter reflects the strength of the Saflex interlayers business as growth in architectural and automotive sales, boosted by premium product offerings, more than offset the impact of a continued weak demand profile in the solar encapsulant market,” said D. Michael Donnelly, executive vice president and chief operating officer. “We have announced the intention to explore new pricing structures for Saflex in 2012, which are designed to lessen the impact that volatility in raw material costs brings to our business and to our customers.” The Performance Films segment’s third quarter 2011 net sales totalled USD 74 million, an increase of USD 1 million or 1% from the same period in 2010. Adjusted EBITDA decreased USD 1 million to USD 12 million for the third quarter of 2011 compared to the prior year period. This earnings decrease was primarily due to higher raw materials costs and increased selling costs, partially offset by improved selling prices.
“Steady results for Performance Films in the third quarter included strong performance of our premium window film brands, which continued to exceed growth expectations, offset by lower sales into the electronics market,” said Donnelly. “The recently announced agreement to acquire Southwall Technologies Inc. positions us well to capitalize on the high-growth opportunities for advanced films solutions, including securing access to a key base material for V-KOOL premium aftermarket window films.”