US Solutia says its 2008 earnings are on target

26 January 2009 19:58  [Source: ICIS news]

HOUSTON (ICIS news)--Solutia will maintain its previous 2008 earnings estimate of $385m-395m (€296m-304m) as its hard line on pricing offset soft sales, the US specialty chemical maker said on Monday.

“While volumes turned down, we were able to hold the line on pricing,” said company chairman, president and CEO Jeffry Quinn. “In addition, during the quarter we initiated aggressive cost cutting measures.”

The St. Louis-based company said it expects $430m in net sales for the year, down 12% from the year before. Sales volumes slowed across the globe, the company said.

The company said it was scaling back capital spending, reducing its workforce and making other cost cuts.

It said it also expected to announce by the end of the first quarter the sale of its nylon unit, which went up for purchase in June.

Solutia manufactures various specialty chemicals and acrylonitrle (ACN). The company will release its earnings on 17 February.

($1 = €0.77)

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By: Ben Lefebvre
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