ST LOUIS, Jan. 26, 2011 /PRNewswire/ --
Fourth Quarter Highlights -- Net sales increased 7% to $489 million from $456 million in 2009 -- Basic and Diluted earnings per share from continuing operations of $.36 -- Adjusted diluted earnings per share from continuing operations of $.36, down $.09 from the same period in 2009 Full-Year Highlights -- Net sales increased 21% to $1,950 million from $1,618 million in 2009 -- Basic and Diluted earnings per share from continuing operations of $.73; Adjusted diluted earnings per share of $1.57, up $.36 from the same period in 2009 -- Cash provided by continuing operations less capital expenditures increased 53% to $230 million from $150 million in 2009
Note: See reconciliation tables below for adjustments made to GAAP financial measures and discussion of items affecting results.
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"The year we just completed was a landmark in the development of Solutia as a leading global specialty chemicals and performance materials company," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "We delivered strong financial results highlighted by significant top-line growth and industry-leading margins, as well as earnings and cash flow that exceeded expectations. We also improved our balance sheet and enhanced our strategic positioning in high-growth markets around the globe through synergistic acquisitions, high-return organic growth projects, and customer-focused innovation."
Fourth Quarter 2010: Consolidated Results from Continuing Operations
Solutia Inc. today reported income from continuing operations attributable to Solutia of $43 million for the fourth quarter 2010, up $34 million from the same period in 2009. The fourth quarter of 2009 was impacted by certain events affecting comparability (detailed below), which resulted in net after-tax charges of $45 million. After adjusting for these items, income from continuing operations attributable to Solutia decreased $11 million as compared to the fourth quarter of 2009. Adjusted diluted earnings per share for the fourth quarter totaled 36 cents, down 9 cents from the same period in 2009. Despite higher sales volumes, year-over-year Adjusted diluted earnings per share decreased primarily due to higher raw material costs, depreciation and amortization expense and increased tax expense. Adjusted EBITDA for the fourth quarter totaled $116 million, down $3 million from the same period in 2009.
Segment Data
In order to aid understanding of Solutia's business performance, the results of its business segments are presented on an adjusted basis and reconciled to the comparable GAAP measures in the below tables.
Advanced Interlayers Segment
Advanced Interlayers' fourth quarter 2010 net sales totaled $222 million, an increase of $7 million or 3 percent from the same period in 2009. Adjusted EBITDA increased $1 million to $50 million for the fourth quarter of 2010 compared to the prior year period. This earnings increase was primarily due to higher sales volumes supplemented by additional sales volumes attributable to the acquisition of the Vistasolar business and improved manufacturing performance, which more than offset the impact of lower average selling prices and higher raw material costs.
"Advanced Interlayers delivered the segment's best quarterly revenue for the year in the fourth quarter due to Vistasolar sales, which more than offset the extremely strong auto volumes experienced in the same period in 2009. Fourth quarter 2010 reflected a more normal buy pattern for auto compared to the same period in 2009," said James R. Voss, executive vice president and chief operating officer. "We continue to invest in our capabilities to meet growing demand and provide cost-effective solutions for our customers around the world, including the increasing number of platforms in the original equipment manufacturer acoustic automotive market."
Performance Films Segment
Performance Films' fourth quarter 2010 net sales totaled $54 million, an increase of $10 million or 23 percent from the same period in 2009. Adjusted EBITDA increased $1 million to $6 million for the fourth quarter of 2010 compared to the prior year. This increase was primarily driven by higher sales volumes supplemented by sales volumes attributed to the Novomatrix acquisition, which more than offset increased manufacturing and selling costs.
"Performance Films experienced success in the architectural market, particularly in large projects, as December delivered the second-best monthly results for architectural in 2010. The segment continues to partner with large retailers and recently signed a new contract with a major North American retailer to support its current in-store program," said Voss. "In addition, demand from the electronics sector in Asia continues to be strong as the popularity of high-tech devices, such as electronic tablets and e-readers, continues to escalate."
Technical Specialties Segment
Technical Specialties' fourth quarter 2010 net sales totaled $213 million, an increase of $19 million or 10 percent from the same period in 2009. Adjusted EBITDA remained consistent at $75 million for the fourth quarter of 2010 compared to the prior year. Technical Specialties experienced higher sales volumes, which offset higher raw material costs and increased manufacturing costs.
"Technical Specialties continues to experience increased demand for Crystex® insoluble sulfur from the rubber and tire industry and continues to make the necessary investments to meet the needs of our strategic partners and customers," added Voss. "In addition, we have continued to maximize the value of our other rubber chemical assets through the strategic divestiture of selected assets, further positioning the segment for long-term success."
Unallocated and Other
Unallocated and other expenses reduced Adjusted EBITDA by $15 million, which was a $5 million increase compared to the fourth quarter of 2009, primarily attributed to expenses related to the reinstatement of our annual incentive compensation program.
Full-Year 2010: Consolidated Results from Continuing Operations
Net sales for the full year 2010 were $1,950 million, an increase of 21% as compared to 2009. Income from continuing operations attributable to Solutia was $87 million in 2010 compared to $62 million in 2009. These results were impacted by certain events affecting comparability (detailed below) totaling an after-tax charge of $101 million and $67 million in 2010 and 2009, respectively. After consideration of these items in both periods, adjusted income increased by $59 million, from $129 million in 2009 to $188 million in 2010. Adjusted diluted earnings per share was $1.57 for the year, up 36 cents from 2009. Adjusted EBITDA was $504 million in 2010 versus $399 million in 2009. The increase in net sales resulted from higher volumes (+19 percent) and the inclusion of Vistasolar and Novomatrix results on a partial year basis (+5 percent), partially offset by lower average selling prices and the effect of unfavorable exchange rate fluctuations. Higher sales volumes were realized across all of our reporting segments due to the strengthening demand across the global automotive and industrial sectors. The Adjusted EBITDA increase resulted from higher net sales and the impact of acquisitions, partially offset by higher raw material costs and the reinstatement of incentive compensation programs.
Leverage and Liquidity
The Company ended the year with net debt of $1,272 million and liquidity of $466 million. Cash provided by continuing operations less capital expenditures for the twelve months ended December 2010 was $230 million compared to $150 million for the same period in 2009. The $80 million year-over-year increase in cash flow was primarily attributed to higher Adjusted EBITDA and lower restructuring payments, partially offset by higher incentive compensation payments, increased growth capital expenditures and higher tax payments on higher Ex-U.S. income. "Our organizational focus on working capital was clearly evident in our 2010 results. Although sales increased 21% or $332 million year over year, we were able to generate $16 million of positive cash flow from net working capital," said James M. Sullivan, executive vice president and chief financial officer.
"Due to continued strong cash generation and our surplus liquidity position, we made a voluntary repayment on our Term Loan of $50 million in the fourth quarter and an additional $50 million pay down in January 2011, bringing the total debt reduction since June 30, 2010 to approximately $130 million," said Sullivan. "Moving forward, we anticipate additional voluntary debt repayments in line with our objective to reduce the company's gross debt to Adjusted EBITDA to approximately two times."
Early 2010 refinancing activities extended maturities, reduced interest expense, and enhanced the company's strategic and operating flexibility. In addition, the combination of targeted funding and favorable asset returns narrowed the company's frozen U.S. post-retirement obligations by approximately $100 million. "The great strides made on the balance sheet have positioned Solutia very well to take advantage of the attractive growth opportunities that lie ahead," added Sullivan.
Outlook
"A combination of actions, including strategic deployment of capital - particularly in the rapidly growing Asia-Pacific region - has created the opportunity for continued strong momentum and earnings growth for Solutia in 2011," said Quinn. As previously announced, in 2011, Solutia expects to generate revenue in the range of $2.1 to $2.2 billion, achieve Adjusted EBITDA in the range of $560 million to $600 million and deliver Adjusted EPS from continuing operations in the range of $2.00 to $2.25.
Fourth Quarter Conference Call and Video
In an effort to enhance communications, Solutia has created a supplemental video available on its website and YouTube channel that focuses on the automotive market growth and recovery as well as other key drivers affecting quarterly earnings, available prior to the quarterly conference call.
The company will hold a conference call at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) on Thursday, January 27, 2011, during which Solutia executives will elaborate upon the company's fourth quarter and full-year 2010 financial results.
A live webcast of the conference call and slides will be available through the Investors section of http://www.solutia.com/. The phone number for the call is 888-713-4209 (U.S.) or 617-213-4863 (international), and the passcode is 53788504. Participants are encouraged to dial in 10 minutes early, and also may pre-register for the event by clicking here or from our investor webpage. Pre-registrants will be issued a pin number to use when dialing into the live call that will provide quicker access to the conference. A replay of the event will be available through http://www.solutia.com/ for two weeks or by calling 888-286-8010 (U.S.) or 617-801-6888 (international) and entering the passcode 36735744.
Important Information Regarding Outlook
There is no guarantee that Solutia will achieve its projected financial expectation for 2011 which is based on management estimates, currently available information and assumptions which management believes to be reasonable. Such forward-looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See "Forward-Looking Statements" below.
SOLUTIA INC. CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in millions, except per share amounts) (Unaudited) Three Three Twelve Twelve Months Months Months Months Ended Ended Ended Ended December December 31, 31, December 31, December 31, 2010 2009 2010 2009 ---- ---- ---- ---- Net Sales $489 $456 $1,950 $1,618 Cost of goods sold 346 323 1,342 1,141 --- --- ----- ----- Gross Profit 143 133 608 477 Selling, general and administrative expenses 67 69 261 225 Research and development expenses 5 3 18 14 Other operating income, net (4) (7) (2) (4) --- --- --- --- Operating Income 75 68 331 242 Interest expense (30) (31) (139) (121) Other income, net 4 3 19 -- Loss on debt extinguishment -- (30) (89) (38) --- --- --- --- Income from Continuing Operations Before Income Tax Expense 49 10 122 83 Income tax expense 5 -- 31 17 --- --- --- --- Income from Continuing Operations 44 10 91 66 Income (Loss) from Discontinued Operations, net of tax 4 (2) (9) (175) --- --- --- ---- Net Income (Loss) 48 8 82 (109) Net Income attributable to noncontrolling interest 1 1 4 4 --- --- --- --- Net Income (Loss) attributable to Solutia $47 $7 $78 $(113) === === === ===== Basic and Diluted Income (Loss) per Share attributable to Solutia: Income from Continuing Operations $0.36 $0.08 $0.73 $0.58 Income (Loss) from Discontinued Operations 0.03 (0.02) (0.08) (1.64) ---- ----- ----- ----- Net Income (Loss) attributable to Solutia $0.39 $0.06 $0.65 $(1.06) ===== ===== ===== ====== SOLUTIA INC. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Dollars in millions, except per share amounts) (Unaudited) December 31, December 31, 2010 2009 ---- ---- ASSETS Current Assets: Cash and cash equivalents $191 $243 Trade receivables, net of allowances of $4 in 2010 and $2 in 2009 228 260 Miscellaneous receivables 75 80 Inventories 275 247 Prepaid expenses and other assets 27 37 Current assets of discontinued operations 5 30 --- --- Total Current Assets 801 897 Property, Plant and Equipment 911 919 Goodwill 740 511 Net Identified Intangible Assets 938 803 Other Assets 146 136 --- --- Total Assets $3,536 $3,266 ====== ====== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $173 $161 Accrued liabilities 235 202 Short-term debt, including current portion of long-term debt -- 28 Current liabilities of discontinued operations 15 62 --- --- Total Current Liabilities 423 453 Long-Term Debt 1,463 1,264 Postretirement Liabilities 308 411 Environmental Remediation Liabilities 244 260 Deferred Tax Liabilities 238 179 Non-current Liabilities of Discontinued Operations 25 -- Other Liabilities 97 99 Shareholders' Equity: Common stock at $0.01 par value; (500,000,000 shares authorized, 122,655,811 and 121,869,293 shares issued in 2010 and 2009, respectively) 1 1 Additional contributed capital 1,634 1,612 Treasury shares, at cost (772,686 and 430,203 in 2010 and 2009, respectively) (6) (2) Accumulated other comprehensive loss (195) (237) Accumulated deficit (703) (781) ---- ---- Total Shareholders' Equity attributable to Solutia 731 593 Equity attributable to noncontrolling interest 7 7 --- --- Total Shareholders' Equity 738 600 --- --- Total Liabilities and Shareholders' Equity $3,536 $3,266 ====== ====== SOLUTIA INC. CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in millions) (Unaudited) Twelve Months Twelve Months Ended Ended December 31, December 31, 2010 2009 ---- ---- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS OPERATING ACTIVITIES: Net income (loss) $82 $(109) Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: Loss from discontinued operations, net of tax 9 175 Depreciation and amortization 117 107 Pension contributions in excess of expense (57) (69) Other postretirement benefit contributions in excess of expense (18) (18) Deferred income taxes (7) 1 Amortization of debt issuance costs and discount 8 20 Other Charges: Non-cash loss on deferred debt issuance cost and debt discount write-off 80 38 Other charges including restructuring expenses 27 32 Stock compensation expense 20 17 Changes in assets and liabilities, net of acquisitions and divestitures: Income taxes payable (1) (4) Trade receivables 42 (45) Inventories (22) 74 Accounts payable (4) 12 Restricted cash for environmental remediation and other legacy payments -- 28 Environmental remediation liabilities (18) (18) Other assets and liabilities 38 (47) --- --- Cash Provided by Operations-Continuing Operations 296 194 Cash Provided by (Used in) Operations-Discontinued Operations (22) 57 --- --- Cash Provided by Operations 274 251 --- --- INVESTING ACTIVITIES: Property, plant and equipment purchases (66) (44) Acquisition payments (371) (2) Restricted cash -- 9 Property disposals 8 9 --- --- Cash Used in Investing Activities-Continuing Operations (429) (28) Cash Provided by Investing Activities-Discontinued Operations -- 7 --- --- Cash Used in Investing Activities (429) (21) ---- --- FINANCING ACTIVITIES: Net change in lines of credit -- (14) Proceeds from long-term debt obligations 1,144 470 Net change in long-term revolving credit facilities -- (181) Proceeds from stock issuances -- 119 Proceeds from short-term debt obligations -- 22 Payment of short-term debt obligations (16) (17) Payment of long-term debt obligations (958) (386) Debt issuance costs (27) (25) Purchase of treasury shares (4) (2) Other, net (12) (5) --- --- Cash Provided by (Used in) Financing Activities 127 (19) --- --- Effect of Exchange Rate Changes on Cash and Cash Equivalents (24) -- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (52) 211 CASH AND CASH EQUIVALENTS: Beginning of period 243 32 --- --- End of period $191 $243 ==== ====
The tables below are provided to assist the reader with comparability between the three months ended December 31, 2010 and comparable period in 2009 by providing consolidated and segment sales, EBITDA (1) and Adjusted EBITDA (2).
Consolidated and segment sales, EBITDA(1) and Adjusted EBITDA(2) three months ended December 2010 and 2009 ---------------------------------------------------------------- Three Months Ended December 31 ------------------------------ From Continuing Operations 2010 Adjust- 2010 As --------------- ---- ------- ------- (in millions) ments(3) Adjusted ------------- -------- -------- Net Sales Advanced Interlayers $222 $222 Performance Films 54 54 Technical Specialties 213 213 Unallocated and Other - - Total $489 $489 ==== ==== EBITDA(1) Advanced Interlayers $49 $1 $50 Performance Films 6 - 6 Technical Specialties 79 (4) 75 Unallocated and Other (23) 8 (15) Total $111 $5 $116 ==== === ==== Three Months Ended December 31 ------------------------------ From Continuing Operations 2009 Adjust- 2009 As % change --------------- ---- ------- ------- -------- (in millions) ments(3) Adjusted ------------- -------- -------- Net Sales Advanced Interlayers $215 $215 3% Performance Films 44 44 23% Technical Specialties 194 194 10% Unallocated and Other 3 3 -100% Total $456 $456 7% ==== ==== === EBITDA(1) Advanced Interlayers $46 $3 $49 2% Performance Films 2 3 5 20% Technical Specialties 74 1 75 0% Unallocated and Other (23) 13 (10) -50% Total $99 $20 $119 -3% === === ==== === Consolidated and segment sales, EBITDA(1) and Adjusted EBITDA(2) twelve months ended December 2010 and 2009 ---------------------------------------------------------------- Twelve Months Ended December 31 ------------------------------- From Continuing Operations 2010 Adjust- 2010 As --------------- ---- ------- ------- (in millions) ments(3) Adjusted ------------- -------- -------- Net Sales Advanced Interlayers $828 $828 Performance Films 252 252 Technical Specialties 860 860 Unallocated and Other 10 10 Total $1,950 $1,950 ====== ====== EBITDA(1) Advanced Interlayers $188 $2 $190 Performance Films 46 2 48 Technical Specialties 316 8 324 Unallocated and Other (87) 29 (58) Total $463 $41 $504 ==== === ==== Twelve Months Ended December 31 ------------------------------- From Continuing Operations 2009 Adjust- 2009 As % change --------------- ---- ------- ------- -------- (in millions) ments(3) Adjusted ------------- -------- -------- Net Sales Advanced Interlayers $690 $690 20% Performance Films 185 185 36% Technical Specialties 725 725 19% Unallocated and Other 18 18 -44% Total $1,618 $1,618 21% ====== ====== === EBITDA(1) Advanced Interlayers $144 $15 $159 19% Performance Films 26 7 33 45% Technical Specialties 271 (11) 260 25% Unallocated and Other (96) 43 (53) -9% Total $345 $54 $399 26% ==== === ==== === (1) EBITDA is defined as earnings from continuing operations before interest expense, loss on debt extinguishment, income taxes, depreciation and amortization, less net income attributable to non- controlling interests. Foreign currency gains/losses are included in Unallocated and Other. (2) Adjusted EBITDA is EBITDA (as defined above), excluding Adjustments (as defined below) (3) Adjustments include Events Affecting Comparability (see separate table), cost overhang associated with the sale of the Integrated Nylon business and the shutdown of the Primary Accelerators business, and non-cash stock compensation expense
Use of Non-U.S. GAAP Financial Information and Reconciliation to Comparable GAAP Number
For the purpose of this press release, the company has used certain financial measures such as EBITDA (defined as earnings from continuing operations before interest expense, loss on debt extinguishment, income taxes, depreciation and amortization, less net income attributable to non-controlling interests), Adjusted EBITDA (to include EBITDA and exclude certain gains and losses that affect comparability, cost overhang associated with the sale of our Integrated Nylon business and the shutdown of the Primary Accelerators business, and non-cash stock compensation expense) and Adjusted Earnings Per Share, that are not determined in accordance with generally accepted accounting principles in the United States (GAAP). The company believes that these non-GAAP financial measures are useful to investors because they facilitate period-to-period comparisons of Solutia's performance and enable investors to assess the company's performance in the way that management and lenders do. Our debt covenants and certain management reporting and incentive plans are measured against certain of these non-GAAP financial measures. Reconciliations of these measures to GAAP measures are included immediately below.
We are unable to reconcile our Adjusted EBITDA projections to comparable GAAP numbers because of the difficulty in predicting adjustments that would be required such as, but not limited to, income taxes, depreciation, amortization and other items.
Reconciliation of Income from Continuing Operations to Adjusted EBITDA from Continuing Operations --------------------------------------------------------------- Three Three Twelve Twelve Months Months Months Months Ended Ended Ended Ended December December December December 31, 31, 31, 31, (in millions) 2010 2009 2010 2009 ---- ---- ---- ---- Income from Continuing Operations $44 $10 $91 $66 -Net Income attributable to noncontrolling interest 1 1 4 4 --- --- --- --- Income from Continuing Operations attributable to Solutia $43 $9 $87 $62 + Income Tax Expense 5 - 31 17 + Interest Expense 30 31 139 121 + Loss on Debt Extinguishment - 30 89 38 + Depreciation and Amortization 33 29 117 107 EBITDA from Continuing Operations $111 $99 $463 $345 + Events affecting comparability (1) - 15 18 32 + Non-cash Stock Compensation Expense 5 4 20 17 + Primary Accelerators and Nylon Cost Overhang - 1 3 5 Adjusted EBITDA from Continuing Operations $116 $119 $504 $399 ---- ---- ---- ---- (1) See table of Summary of Events Affecting Comparability Reconciliation of Income from Continuing Operations to Income from Continuing Operations Attributable to Solutia before Events Affecting Comparability and Calculation of Adjusted Earnings Per Share ------------------------------------------------------------------ Three Months Three Months Ended Ended December 31, December 31, (in millions, except per share amounts) 2010 2009 ---- ---- Income from Continuing Operations $44 $10 Less: Net Income attributable to noncontrolling interest 1 1 --- --- Income from Continuing Operations attributable to Solutia $43 $9 + Events affecting comparability, after-tax (1) - 45 Income from Continuing Operations attributable to Solutia before events affecting comparability $43 $54 --- --- Basic and Diluted Shares Weighted average shares outstanding -Basic 119.2 118.5 Assumed conversion of Restricted Stock 1.3 1.1 Assumed exercise of Stock Options 0.3 - Weighted average shares outstanding -Diluted 120.8 119.6 ----- ----- Adjusted EPS - Basic $0.36 $0.46 Adjusted EPS - Diluted $0.36 $0.45 ----- ----- Twelve Twelve Months Months Ended Ended December December 31, 31, (in millions, except per share amounts) 2010 2009 ---- ---- Income from Continuing Operations $91 $66 Less: Net Income attributable to noncontrolling interest 4 4 --- --- Income from Continuing Operations attributable to Solutia $87 $62 + Events affecting comparability, after-tax (1) 101 67 Income from Continuing Operations attributable to Solutia before events affecting comparability $188 $129 ---- ---- Basic and Diluted Shares Weighted average shares outstanding -Basic 118.9 106.5 Assumed conversion of Restricted Stock 1.1 0.2 Assumed exercise of Stock Options - - Weighted average shares outstanding -Diluted 120.0 106.7 ----- ----- Adjusted EPS - Basic $1.58 $1.21 Adjusted EPS - Diluted $1.57 $1.21 ----- ----- (1) See table of Summary of Events Affecting Comparability Summary of Events Affecting Comparability ----------------------------------------- Three Three Months Months Ended Ended December December 31, 31, (in millions) 2010 2009 ---- ---- Plant closures, divestitures and other restructuring: Severance, pension settlement and retraining costs related to the general corporate restructuring $2 $14 Charges related to the closure of the SAFLEX(R) production line at the Trenton, Michigan Facility - - Net charges (gains) related to the closure of the Ruabon, Wales facility - 1 Charges related to the closure of the Cologne facility 1 - Loss related to the sale of the Plastic Products businesses - - Net charges on Performance Films European consolidation - 3 Net gain related to the Thiurams sale (3) Gain on sale of selected assets of the Perkalink business (5) - Acquisition-related costs: Acquisition costs related to Vistasolar and Novomatrix - - Inventory step-up related to the Novomatrix Acquisition - - Other unusual (gains) / charges: Gain related to the reduction in the 2008 annual incentive plan - - Gain on settlement of tax indemnification case - - Settlement of a contractual dispute 2 - --- --- EBITDA impact $- $15 Charges related to the early extinguishment of debt - 30 --- --- Pre-tax income statement impact $- $45 Income tax impact - - --- --- After-tax income statement impact $- $45 --- --- Twelve Twelve Months Months Ended Ended December 31, December 31, (in millions) 2010 2009 ---- ---- Plant closures, divestitures and other restructuring: Severance, pension settlement and retraining costs related to the general corporate restructuring $6 $46 Charges related to the closure of the SAFLEX(R) production line at the Trenton, Michigan Facility - 5 Net charges (gains) related to the closure of the Ruabon, Wales facility 2 (2) Charges related to the closure of the Cologne facility 8 - Loss related to the sale of the Plastic Products businesses 5 6 Net charges on Performance Films European consolidation - 3 Net gain related to the Thiurams sale (3) Gain on sale of selected assets of the Perkalink business (5) - Acquisition-related costs: Acquisition costs related to Vistasolar and Novomatrix 7 - Inventory step-up related to the Novomatrix Acquisition 1 - Other unusual (gains) / charges: Gain related to the reduction in the 2008 annual incentive plan - (23) Gain on settlement of tax indemnification case (8) - Settlement of a contractual dispute 2 - --- --- EBITDA impact $18 $32 Charges related to the early extinguishment of debt 89 38 --- --- Pre-tax income statement impact $107 $70 Income tax impact (6) (3) --- --- After-tax income statement impact $101 $67 ---- ---
Notes to Editor: SOLUTIA and Radiance Logo(TM) and all other trademarks listed below are trademarks of Solutia Inc. and/or its affiliates.
Forward Looking Statements
This press release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "may," "will," "intends," "plans," "estimates" or "anticipates," or other comparable terminology, or by discussions of strategy, plans or intentions. These statements are based on management's current expectations and assumptions about the industries in which Solutia operates. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, those risk and uncertainties described in Solutia's most recent Annual Report on Form 10-K, including under "Cautionary Statement About Forward Looking Statements" and "Risk Factors", and Solutia's quarterly reports on Form 10-Q. These reports can be accessed through the "Investors" section of Solutia's website at http://www.solutia.com/. Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.
Corporate Profile
Solutia is a market-leading performance materials and specialty chemicals company. The company focuses on providing solutions for a better life through a range of products, including: Saflex® polyvinyl butyral interlayers for glass lamination and for photovoltaic module encapsulation and VISTASOLAR® ethylene vinyl acetate films for photovoltaic module encapsulation; LLumar®, Vista(TM), EnerLogic(TM), FormulaOne®, Gila®, V-KOOL®, Huper Optik®, IQue(TM), Sun-X(TM) and Nanolux(TM) aftermarket performance films for automotive and architectural applications; Flexvue(TM) advanced film component solutions for solar and electronic technologies; and technical specialties products including Crystex® insoluble sulfur, Santoflex® PPD antidegradants, Therminol® heat transfer fluids and Skydrol® aviation hydraulic fluids. Solutia's businesses are world leaders in each of their market segments. With its headquarters in St. Louis, Missouri, USA, the company operates globally with approximately 3,400 employees in more than 50 worldwide locations. More information is available at http://www.solutia.com/.
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Solutia Inc.
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Web Site: http://www.solutia.com/
