Solutia Reports $184 Million Increase in Net Sales for Second Quarter
St. Louis-based Solutia Inc. reported this week that it attained net sales of $1,095 million for the second quarter of 2008, a 20 percent increase over net sales of $911 million for the same period in 2007. The company attributes approximately 8 percent of this increase to the consolidation of Flexsys sales, beginning on May 1, 2007, following Solutia's acquisition of the remaining 50 percent share of its former joint venture.
Solutia had a consolidated loss of $16 million for the second quarter of 2008, compared to income from continuing operations of $27 million for the same period in 2007. Solutia's results were impacted by certain events affecting comparability totaling an after-tax loss of $33 million in 2008 and an after-tax gain of $10 million in 2007.
After consideration of these special items in both periods, income held steady at $17 million in the second quarter of 2008 or $.28 per share, despite increased depreciation and amortization expense, higher interest cost and higher stock compensation expense, according to a statement issued by the company.
"We are pleased to report solid second quarter growth, driven by
strong volumes and price increases across our businesses," says Jeffry
N. Quinn, chairman, president and chief executive officer of Solutia Inc.
"Importantly, even though the escalation of raw materials accelerated
in the second quarter compared to the first, our focused pricing actions
and strong market positions allowed us to recover a significant percentage
of this cost increase. We also continued to benefit from our geographically
diverse business, as international growth-particularly in China-more than
offset softening domestic markets."
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