Solutia third-quarter net income falls

American Chemical maker Solutia Inc. posted a 91% plunge in third-quarter net income on slumping sales and a year-earlier gain.
The firm reported net income of US$ 7 million, or seven cents a diluted…

American Chemical maker Solutia Inc. posted a 91% plunge in third-quarter net income on slumping sales and a year-earlier gain. The firm reported net income of US$ 7 million, or seven cents a diluted share, compared with US$ 78 million, or 74 cents a share, a year earlier. Excluding the US$ 53 million, or 50 cents a share, in gains, year-earlier earnings would have been US$ 25 million, or 24 cents a share. Revenue slipped 11% to US$ 690 million from US$ 774 million. Excluding the divestiture of the polymer modifiers business, sales would have dropped 8%. Solutia warned in October that it expected earnings of six to 10 cents a share. That followed July“s warning that the company did not think its third-quarter earnings would exceed 12 cents a share. At that time, the mean estimate of analysts surveyed by Thomson Financial/First Call was for earnings of 22 cents a share. Going forward, the company said in a prepared statement that it saw the potential for a modest per-share loss in the fourth quarter.