26 October 2011 23:21 [Source: ICIS news]
HOUSTON (ICIS)--Solutia’s third-quarter net profit increased by 56% to $75m (€54m) from $48m in the third quarter of last year on a 2% increase in sales, the US-based specialty chemicals producer said on Wednesday.
Net sales for the quarter ended 30 September rose by $8m to $519m, Solutia said.
However, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the third quarter totalled $121m, down by $9m from the same period in 2010, Solutia said.
Solutia’s Advanced Interlayers segment third-quarter net sales totalled $227m, an increase of $15m from the same period in 2010. Adjusted EBITDA fell by $1m to $47m, primarily as a result of higher raw material costs.
The segment includes Saflex, which makes polyvinyl butyral (PVB), used to make safety glass and photovoltaics.
Sales for the company’s Performance Films segment rose by $1m to reach $74m, while adjusted EBITDA fell by $1m to $12m, largely because of higher raw material costs and increased selling costs.
Sales for the company’s Technical Specialties segment fell by $6m to $218m. Adjusted EBITDA fell by $7m to hit $75m primarily the result of higher raw material costs and the loss of earnings from other rubber chemicals businesses divested since the third quarter of 2010, Solutia said.
Unallocated and other expenses in the quarter reduced adjusted EBITDA by $13m, flat when compared with the third quarter of 2010.
Looking forward, Solutia said it expects fourth-quarter sales to “be consistent with the third quarter as slightly higher volumes are expected to be substantially offset by the translation impact from a stronger US dollar”.
Shares of Solutia rose Wednesday to $15.62, up 48 cents on the New York Stock Exchange.
($1 = €0.72)
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