US Solutia Q3 profit jumps 61% to $50m amid higher sales

27 October 2010 22:04  [Source: ICIS news]

HOUSTON (ICIS)--Solutia posted a third-quarter net income of $50m (€36m), up 61% year over year amid increased sales volumes, the US specialty chemicals producer said on Wednesday.

Net sales of $511m were 17% higher than the 2009 third quarter.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter totalled $130m, up from $123m in the same period of 2009.

“The year-over-year earnings improvement was primarily due to increased sales volumes across all reporting segments, partially offset by higher raw material costs and expenses related to the reinstatement of certain employee incentive programmes suspended during 2009,” the company said.

By segment, Solutia’s third-quarter net sales of technical specialties, advanced interlayers and performance films increased by 14%, 16% and 38%, respectively.

The 38% rise in performance films sales was driven by increased interest in architectural window film products that could make buildings more energy efficient, Solutia said.

Looking ahead, Solutia said it expected a normal seasonal slowdown of sales volumes, with average selling prices and raw material costs generally consistent with the third quarter.

For the full year, the company said it expected sales to come in at the high end of its prior guidance range, which was 10-15% above 2009 levels.

Following the earnings release, Solutia’s stock moved higher by 53 cents, or 2.9%, to $18.74/share in after-hours electronic trading on the New York Stock Exchange.

($1 = €0.72)

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By: Ben DuBose
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