Home / Knowledge / News / Textiles / Sale of nylon biz marks historical development, Solutia
Sale of nylon biz marks historical development, Solutia
28
Jul '09
Solutia Inc announces the second quarter 2009 results.

2009 Second Quarter Highlights
• Transformational sale of nylon business completed
• Net sales of $410 million, a sequential improvement over first quarter 2009 of 21 percent
• Basic and diluted earnings per share from continuing operations of $0.25; Adjusted earnings per share of $0.33
• Adjusted EBITDA of $96 million, a sequential improvement over first quarter 2009 of 71 percent
• Adjusted EBITDA margins improved to 23 percent
• Net debt reduced in the quarter by $206 million
• Affirming Adjusted EBITDA guidance of $325 to $350 million and cash guidance from continuing operations less capital
expenditures to high end of range at $100 million, up from previously stated target of $50 to $100 million

"The sale of the nylon business this quarter marked a historical development, as it completed Solutia's transformation into a pure-play performance material and specialty chemicals company," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "This latest move completes a key component of our restructuring strategy which began during our reorganization and positions the Company on a solid foundation with a portfolio of high-margin businesses, valued products and world-leading market positions.

Improved sequential performance in all business segments in comparison to first quarter 2009, was enabled by our aggressive response to the global recession and helped us achieve a record adjusted EBITDA margin during the quarter and affirms our confidence that we will achieve our adjusted EBITDA guidance for the full year. We are positioned to continue to deliver strong financial performance despite the challenging macroeconomic environment and to benefit as conditions improve in the end-markets we serve."

Consolidated Results from Continuing Operations
Solutia Inc reported consolidated income from continuing operations of $24 million for the second quarter of 2009, compared to a loss of $6 million for the same period in 2008. These results were impacted by certain events affecting comparability (detailed below) totaling a net loss of $8 million in 2009 and a net loss of $28 million in 2008.

After adjusting for these items in both periods, consolidated net income from continuing operations of $32 million in the second quarter of 2009 increased from income of $22 million in the second quarter of last year. This was primarily due to implementation of cost reductions, lower raw material and energy costs, improved interest expense, partially offset by weakened demand and higher stock compensation expense.

For the quarter, Solutia posted basic and diluted earnings per share from continuing operations attributable to Solutia of $0.25 and as adjusted, earnings per share of $0.33.

Consolidated EBITDA from continuing operations for the second quarter increased to $90 million from $69 million in the second quarter of 2008 on net sales of $410 million and $577 million, respectively. After taking into consideration adjustments (as detailed below in the consolidated and segment sales, EBITDA and Adjusted EBITDA table), Adjusted EBITDA decreased to $96 million from $114 million.

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.

Saflex Segment
Saflex's second quarter 2009 net sales were $160 million, down $60 million or 27 percent from the same period in 2008. Adjusted EBITDA decreased to $39 million for the second quarter of 2009 compared to $41 million in the prior year period primarily due to automotive sales volume declines, partially offset by lower raw material and SG&A costs.


Must ReadView All

China reportedly cancels trade talks with US, Liu He visit

Apparel/Garments | On 22nd Sep 2018

China reportedly cancels trade talks with US, Liu He visit

Washington is reportedly positive about arriving at a solution to its ...

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

Interviews View All

Viral Desai, Zenitex Mill Pvt Ltd

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Deepak Jain, Baggout

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Yash Jain & Sanjeev Jain,

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search