EX-99.1 2 l31505aexv99w1.htm EX-99.1 EX-99.1
 

EXHIBIT 99.1
     
(SOLUTIA LOGO)
  News
 
  Solutia Inc.
575 Maryville Centre Drive
St. Louis, Missouri 63141
 
    
 
  P.O. Box 66760 St. Louis, Missouri 63166-6760
 
    
FOR IMMEDIATE RELEASE
    
     
 
  Media: Dan Jenkins (314) 674-8552
 
  Investors: Susannah Livingston (314) 674-8914
Solutia Announces First Quarter 2008 Results
ST. LOUIS— May 7, 2008
Highlights
•   Net sales increased to $985 million from $702 million over the same period last year;
  o   Strategic investments enabled strong volume gains over prior year
•   Adjusted EBITDAR increased to $88 million from $75 million, over the same period, inclusive of $63 million increase in raw materials and energy costs
     Solutia Inc. (NYSE: SOA) today reported net sales of $985 million for the first quarter of 2008, a 40% increase over net sales of $702 million for the same period in 2007. Approximately 29% of this increase is attributable to the consolidation of Flexsys sales beginning on May 1, 2007, following Solutia’s acquisition of the remaining 50% share of its former joint venture. On a pro-forma basis, adjusting 2007 first quarter sales to include Flexsys, sales increased 14% over the prior year.
     Solutia had consolidated net income of $1,420 million for the first quarter 2008 compared to a loss of $8 million for the same period in 2007. Solutia’s results were impacted by reorganization items and certain gains and losses of $1,416 million after-tax and ($23) million

 

 

after-tax in 2008 and 2007 respectively. After consideration of these special items in both periods, income was down $11 million from $15 million in the first quarter of 2007 to $4 million in the first quarter of 2008. This decline was the result of a higher percentage of the company’s pre-tax earnings from foreign jurisdictions subject to income tax, higher interest costs and increased depreciation and amortization expense.
     “Despite softness in U.S. automotive and housing markets, our first quarter results reflect strong volume gains across most businesses which demonstrates the improved geographic and end use diversity of the company’s portfolio,” commented Jeffry Quinn, chairman, president and chief executive officer of Solutia Inc. “While selling prices trailed raw material cost increases in the quarter, in particular in the Integrated Nylon segment, this was not unexpected given the increasing cost profile across the quarter. We are off to a solid start in 2008, and are focused on getting selling prices up over the coming quarters. “
Fresh Start Accounting
     Upon emergence from chapter 11 reorganization, Solutia adopted fresh-start accounting, as required by generally accepted accounting principles. This resulted in the company having a new capital structure, a new basis in identifiable assets and liabilities and no retained earnings or accumulated losses as of March 1, 2008. Accordingly, the company’s financial information shown for periods prior to March 1, 2008 (“Predecessor”) is not comparable to consolidated financial statements presented on or after March 1, 2008 (“Successor”). However, for the readers’ convenience the current year results of operations for these two periods of the Predecessor and the Successor have been combined in this news release. As a result of the increased asset values through the application of fresh-start accounting and the implementation of new stock based incentive plans at emergence, 2008 operating earnings include an additional

 

 

$3 million of non-cash expenses consisting of $2 million additional depreciation and amortization expense and stock compensation expense of $1 million. In addition, reported profitability in all segments was adversely affected by charges resulting from the step-up in basis of the company’s inventory in accordance with fresh start accounting in the aggregate amount of $25 million.
     The table below is provided to assist the reader with combined consolidated and segment sales, EBITDAR(1) and Adjusted EBITDAR (3) comparability between the first quarter 2008 and the first quarter 2007.
                                                                         
    Three Months Ended March 31
                                                            2007    
From Continuing Operations   Combined       2008 As               2007 As   2007   Adjusted   %
(in millions)   2008   Adjustments(2)   Adjusted   2007   Adjustments(2)   Adjusted   Flexsys   Pro forma   change
 
Net Sales
                                                                        
Saflex
     193               193       169               169               169       14 %
CPFilms
     62               62       59               59               59       5 %
Technical Specialties
     252               252       39               39       164       203       24 %
Integrated Nylon
     468               468       426               426               426       10 %
Corporate/Other
     10               10       9               9               9       11 %
     
Total
     985               985       702               702       164       866       14 %
     
 
EBITDAR(1)
                                                                        
Saflex
     20       13       33       28               28               28       18 %
CPFilms
     12       4       16       16               16               16       0 %
Technical Specialties
     52       7       59       8               8       36       44       34 %
Integrated Nylon
     (9 )     2       (7 )     28               28               28       -126 %
Corporate/Other
     (11 )     (2 )     (13 )     (12 )     7       (5 )     (9 )     (14 )     7 %
     
Total
     64       24       88       68       7       75       27       102       -14 %
     
 
(1)   EBITDAR is defined as earning before interest expense, income taxes, depreciation and amortization, and reorganization items, net
 
(2)   Adjustments include Events Affecting Comparability (see table below) and non-cash stock compensation expense
 
(3)   Adjusted EBITDAR is EBITDAR (as defined above), excluding Events Affecting Comparability (see table below) and non-cash stock compensation expense
Consolidated Results
     Reported combined consolidated EBITDAR for the first quarter decreased to $64 million from $68 million in 2007. After taking into consideration certain net losses (as described above in Adjustments) of $24 million and $7 million respectively for 2008 and 2007, adjusted

 

 

EBITDAR increased to $88 million from $75 million. On a pro-forma basis, adjusting 2007 first quarter results to include Flexsys, adjusted EBITDAR in the first quarter 2008 decreased $14 million from $102 million in 2007.
Segment Data
     As previously announced on March 10, 2008, Solutia realigned its financial reporting to four segments from its previous two segment reporting structure. The four segments are Saflex, CPFilms, Technical Specialties, and Integrated Nylon. Management believes this new reporting structure more effectively communicates Solutia’s current operating environment and business unit strategies, while concurrently providing increased transparency into the company’s operating and financial performance.
Saflex Segment
     Saflex’s first quarter 2008 net sales were $193 million, up $24 million or 14% from the same period of 2007.
     EBITDAR decreased $8 million to $20 million for the first quarter of 2008 compared to the prior year period. EBITDAR for this business was adversely affected by a non-cash charge of $12 million associated with the fresh start accounting step-up in basis of inventory and $1 million of severance and retraining cost. Excluding these charges, EBITDAR increased by $5 million, or 18% primarily due to stronger revenues in comparison to the prior year.
CPFilms Segment
     CPFilms’ first quarter 2008 net sales were $62 million, up $3 million or 5% from the same period in 2007.
     EBITDAR decreased $4 million to $12 million for the first quarter of 2008, compared to the prior year period. Excluding a $4 million non-cash charge associated with the fresh start accounting step-up in basis of the segment’s inventory, EBITDAR was equal to that of the

 

 

previous year with the earnings increase from higher revenues offset by targeted spending on international market development programs.
Technical Specialties Segment
     Technical Specialties net sales for the first quarter 2008 of $252 million increased by $213 million compared to 2007. Including Flexsys on a pro forma basis, sales improved $49 million or 24% over 2007.
     EBITDAR increased $44 million to $52 million during the first quarter 2008 compared to the prior year period. Including Flexsys on a pro forma basis, EBITDAR increased $15 million, excluding a $7 million non-cash charge associated with the fresh start accounting step-up in basis of the segment’s inventory, primarily due to stronger revenues versus the prior year.
Integrated Nylon Segment
     Integrated Nylon net sales for the first quarter 2008 of $468 million increased $42 million or 10% compared to 2007.
     Integrated Nylon EBITDAR decreased $37 million to a $9 million loss during the first quarter 2008 compared to the prior year period. This segment was also impacted by fresh start accounting related to step-up in inventory basis in the amount of $2 million. Excluding this charge, the $35 million decrease in year-over-year adjusted EBITDAR is primarily attributable to higher raw material costs that were only partially recovered with higher selling prices in the quarter.
Unallocated and Other
     After taking into consideration gains and losses and decreases in equity earnings as a result of the Flexsys acquisition, corporate and other expenses were flat compared to the first quarter 2007.

 

 

Cash Flow
     Cash from operations in first quarter 2008 was a use of $469 million. This included $355 million of reorganization related cash outflows required to facilitate emergence from Chapter 11, a $151 million seasonal increase in inventory and accounts receivable and a $19 million mandatory contribution to the domestic pension plan.
Outlook
     Assuming raw material costs plateau as currently anticipated in the second quarter, the Company expects 2008 adjusted EBITDAR in the $375 million to $400 million range. This compares to $376 million of pro forma adjusted EBITDAR in 2007, inclusive of Flexsys results on a full year basis.
First Quarter Conference Call
     The company will hold a conference call at 9 a.m. Central Time (10 a.m. Eastern Time) on Thursday, May 8, 2008, during which Solutia executives will elaborate upon the company’s first quarter 2008 financial results, and discuss the company’s improved strategic and financial position following its first quarter emergence from Chapter 11 reorganization.
     A live webcast of the conference call will be available through the Investors section of www.solutia.com. The phone number for the call is 888-713-4209 (U.S.) or 617-213-4863 (International), and the pass code is 10837115. Participants are encouraged to dial in 10 minutes early, and also may pre-register for the event at https://www.theconferencingservice.com/prereg/key.process. A replay of the event will be available through www.solutia.com for two weeks or by calling 888-286-8010 (U.S.) or 617-801-6888 (International) and entering the pass code 77722920.

 

 

Summary of Events Affecting Comparability
     Gains and losses (as identified by footnotes a, b & c below) recorded in the first quarter of 2008 and 2007 and other events affecting comparability have been summarized and described in the table and accompanying footnotes below (dollars in millions):
2008 Events
                                                 
     
    Technical             Integrated             Unallocated/        
Increase/(Decrease)   Specialties     SAFLEX®     Nylon     CPFilms     Other     Consolidated  
Impact on:
                                                
Cost of goods sold
   $ 7     $ 12     $ 2     $ 4     $ —     $ 25 (a)
 
     —       —       —       —       (3 )     (3 )(b)
 
     —       1       —       —       —       1 (c)
               
Operating Income Impact
     (7 )     (13 )     (2 )     (4 )     3       (23 )
 
                                                
Reorganization Items, net
     —       —       —       —       1,633       1,633 (d)
               
Pre-tax Income Statement Impact
   $ (7 )   $ (13 )   $ (2 )   $ (4 )   $ 1,636       1,610  
                     
Income tax impact
                                             194 (e)
 
                                              
After-tax Income Statement Impact
                                           $ 1,416  
 
                                              
 
a)   Charges resulting from the step-up in basis of our inventory in accordance with fresh-start accounting ($25 million pre-tax and after-tax).
 
b)   Gain resulting from joint settlements with Monsanto of legacy insurance policies with insolvent insurance carriers ($3 million pre-tax and after-tax).
 
c)   Restructuring costs related principally to severance and retraining costs ($1 million pre-tax and after-tax).
 
d)   Reorganization items, net consist of the following: $104 million charge on the settlement of liabilities subject to compromise, $1,789 million gain from fresh-start accounting adjustments, and $52 million of professional fees for services provided by debtor and creditor professionals directly related to our reorganization proceedings ($1,633 million pre-tax and $1,439 after-tax).
 
e)   Income tax expense has been provided on gains and charges at the tax rate in the jurisdiction in which they have been or will be realized.
2007 Events
                                                 
    Technical             Integrated             Unallocated/        
Increase/(Decrease)   Specialties     SAFLEX®     Nylon     CPFilms     Other     Consolidated  
Impact on:
                                                
Cost of goods sold
   $ —     $ —     $ —     $ —     $ —     $ —  
               
Operating Income Impact
                     —       —       —       —  
 
                                                
Loss on debt modification
     —       —       —       —       (7 )     (7 )(a)
Reorganization Items, net
     —       —       —       —       (16 )     (16 )(b)
               
Pre-tax Income Statement Impact
   $ —     $ —     $ —     $ —     $ (23 )     (23 )
                     
Income tax impact
                                             — (c)
 
                                              
After-tax Income Statement Impact
                                           $ (23 )
 
                                              

 

 

 
a)   Charges of approximately $7 million (pre-tax and after-tax — see note (c) below) to record the write-off of debt issuance costs and to record the DIP facility as modified at its fair value as of the amendment date.
 
b)   Reorganization items, net consist of the following: $15 million of professional fees for services provided by debtor and creditor professionals directly related to our reorganization proceedings and $1 million of expense provisions related to (i) employee severance costs incurred directly as part of the Chapter 11 reorganization process and (ii) a retention plan for certain our employees approved by the Bankruptcy Court ($16 million pre-tax and after-tax — see note (c) below).
 
c)   The above items are considered to have like pre-tax and after-tax impact as the tax benefit or expense realized from these events is offset by the change in valuation allowance for U.S. deferred tax assets resulting from uncertainty as to their recovery due to our Chapter 11 bankruptcy filing.
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 pro forma and other financial measures such as EBITDAR (defined as earning before interest expense, income taxes, depreciation and amortization and reorganization items, net) and Adjusted EBITDAR (to include EBITDAR and exclude gains and losses and non-cash stock compensation expense) 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.
Reconciliation of Adjusted EBITDAR to Income (Loss) from Continuing Operations
                                 
                    Combined    
    Predecessor   Successor   Three   Predecessor
    Two Months   One Month   Months   Three Months
    Ended   Ended   Ended   Ended
    February 29,   March 31,   March 31,   March 31,
(dollars in millions)   2008   2008   2008   2007
     
Adjusted EBITDAR
   $ 62     $ 26     $ 88     $ 75  
Add:
                                
Income Tax Expense
     (206 )     —       (206 )     (7 )
Reversing tax effect of reorganization and unusual gains/losses
     194       0       194       0  
     
Income Tax Expense (net)
     (12 )     —       (12 )     (7 )
Interest Expense
     (21 )     (18 )     (39 )     (28 )
Depreciation and Amortization
     (20 )     (12 )     (32 )     (25 )
Non-cash Stock Compensation Expense
     —       (1 )     (1 )     —  
     
Income from Continuing Operations before unusual gains/losses & reorg
     9       (5 )     4       15  
Reorganization Items (2008 Gross $1633M, net of tax $1439M)
     1,439       —       1,439       (16 )
Gains & Losses (2008 gross and after-tax $23M)
     2       (25 )     (23 )     (7 )
     
Income (Loss) from Continuing Operations
   $ 1,450     $ (30 )   $ 1,420     $ (8 )
     

 

 

Reconciliation of Proforma Sales and Adjusted EBITDAR Including Flexsys
                 
            Proforma
    Proforma   Technical
Quarter Ended March 31, 2007 (dollars in millions)   Solutia   Specialties
 
Net Sales
   $ 702     $ 39  
Add:
                
Flexsys Net sales for the three months ended March 31, 2007
     164       164  
     
Proforma Net Sales with Flexsys on 100% basis
     866       203  
 
                
Adjusted EBITDAR
   $ 75     $ 8  
Flexsys EBITDAR quarter 1 2007
     36       36  
Back out Equity Income from Flexsys JV
     (9 )     —  
     
Proforma Adjusted EBITDAR with Flexsys on 100% basis
   $ 102     $ 44  
     
Reconciliation of 2007 Proforma Adjusted EBITDAR
         
Net Income Twelve Months Ended 2007
     ($222 )
 
Taxes
     19  
Interest Expense
     134  
Depreciation & Amortization
     116  
Reorganization Items
     298  
Gains and (Losses)
     (5 )
Proforma for Flexsys Full Year 2007
        
Pre-acquisition Flexsys results
     48  
Less: Equity Income
     (12 )
 
Pro-Forma Consolidated EBITDAR 2007
   $376  
 

 

 

SOLUTIA INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars and shares in millions, except per share amounts)
(Unaudited)
                                 
    Predecessor     Successor     Combined     Predecessor  
    Two Months     One Month     Three Months     Three Months  
    Ended     Ended     Ended     Ended  
    February 29,     March 31,     March 31,     March 31,  
    2008     2008     2008     2007  
Net Sales
   $ 653     $ 332     $ 985     $ 702  
Cost of goods sold
      555        316        871        599  
 
                        
Gross Profit
     98       16       114       103  
Selling, general and administrative expenses
     51       26       77       58  
Research, development and other operating expenses
     5       2       7       8  
 
                        
Operating Income (Loss)
     42       (12 )     30       37  
Equity earnings from affiliates
     —       —       —       9  
Interest expense
     (21 )     (18 )     (39 )     (28 )
Other income, net
     2       —       2       4  
Loss on debt modification
     —       —       —       (7 )
Reorganization items, net
     1,633       —       1,633       (16 )
 
                        
Income (Loss) Before Income Tax Expense
     1,656       (30 )     1,626       (1 )
Income tax expense
      206       —        206       7  
 
                        
Net Income (Loss)
   $ 1,450     $ (30 )   $ 1,420     $ (8 )
 
                        
 
                                
Basic and Diluted Income (Loss) per Share:
                                
Basic net income (loss) per share
   $ 13.88     $ (0.50 )     N/A     $ (0.08 )
Diluted net income (loss) per share
   $ 13.88     $ (0.50 )     N/A     $ (0.08 )

 

 

SOLUTIA INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Dollars in millions, except per share amounts)
(Unaudited)
                   
    Successor       Predecessor  
    March 31,       December 31,  
    2008       2007  
ASSETS
                  
Current Assets:
                  
Cash and cash equivalents
   $ 71       $ 173  
Trade receivables, net of allowances of $0 in 2008 and $4 in 2007
     507         448  
Miscellaneous receivables
     143         133  
Inventories
     793         417  
Prepaid expenses and other assets
     93         53  
Assets of discontinued operations
     5         7  
 
              
Total Current Assets
     1,612         1,231  
Property, Plant and Equipment, net of accumulated depreciation of $10 in 2008 and $2,699 in 2007
     1,510         1,052  
Goodwill
     546         149  
Identified Intangible Assets, net
     855         58  
Other Assets
      271          150  
 
              
Total Assets
   $ 4,794       $ 2,640  
 
              
 
                  
LIABILITIES AND SHAREHOLDERS’ DEFICIT
                  
Current Liabilities:
                  
Accounts payable
   $ 406       $ 343  
Accrued liabilities
     319         296  
Short-term debt, including current portion of long-term debt
     13         982  
Liabilities of discontinued operations
     4         6  
 
              
Total Current Liabilities
     742         1,627  
Long-Term Debt
     1,848         359  
Postretirement Liabilities
     458         80  
Environmental Remediation Liabilities
     297         61  
Deferred Tax Liabilities
     234         45  
Other Liabilities
      185          141  
Liabilities Subject to Compromise
     —         1,922  
 
                  
Shareholders’ Equity (Deficit):
                  
Successor common stock at $0.01 par value; (500,000,000 shares authorized, 60,763,046 shares issued and outstanding in 2008)
     1         —  
Predecessor common stock at $0.01 par value; (600,000,000 shares authorized, 118,400,635 shares issued and outstanding in 2007)
     —         1  
Additional contributed capital
     1,037         56  
Predecessor stock held in treasury, at cost, 13,941,057 shares in 2007
     —         (251 )
Predecessor net deficiency of assets at spin-off
     —         (113 )
Accumulated other comprehensive income (loss)
     22         (46 )
Accumulated deficit
     (30 )       (1,242 )
 
              
Total Shareholders’ Equity (Deficit)
     1,030         (1,595 )
 
              
Total Liabilities and Shareholders’ Equity (Deficit)
   $ 4,794       $ 2,640  
 
              

 

 

SOLUTIA INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
(Unaudited)
                                   
    Predecessor     Successor       Combined     Predecessor  
    Two Months     One Month       Three Months     Three Months  
    Ended     Ended       Ended     Ended  
    February 29,     March 31,       March 31,     March 31,  
    2008     2008       2008     2007  
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS OPERATING ACTIVITIES:
                                  
Net income (loss)
   $ 1,450     $ (30 )     $ 1,420     $ (8 )
Adjustments to reconcile to net income (loss) to net cash used in operations:
                                  
Depreciation and amortization
     20       12         32       25  
Revaluation of assets and liabilities, net of tax
     (1,591 )     —         (1,591 )     —  
Discharge of claims and liabilities, net of tax
     100       —         100       —  
Other reorganization items, net
     52       —         52       15  
Pension expense (less than) in excess of contributions
     (18 )     —         (18 )     (29 )
Other postretirement benefits expense less than payments
     (6 )     (1 )       (7 )     (12 )
Amortization of deferred credits
     (1 )     (1 )       (2 )     (2 )
Amortization of deferred debt issuance costs
     —       2         2       —  
Deferred income taxes
     4       (1 )       3       3  
Equity earnings from affiliates
     —       —         —       (9 )
Restructuring expenses and other charges
     (2 )     25         23       7  
Changes in assets and liabilities:
                                  
Income taxes payable
     5       4         9       —  
Trade receivables
     (34 )     (24 )       (58 )     (48 )
Inventories
     (66 )     (27 )       (93 )     (41 )
Accounts payable
     41       (3 )       38       23  
Environmental remediation liabilities
     (1 )     (1 )       (2 )     (1 )
Other assets and liabilities
     (18 )     (5 )       (23 )     (23 )
 
                          
Cash Used in Continuing Operations before Reorganization Activities
     (65 )     (50 )       (115 )     (100 )
Reorganization Activities:
                                  
Establishment of VEBA retiree trust
     (175 )     —         (175 )     —  
Establishment of restricted cash for environmental remediation and other legacy payments
     (46 )     —         (46 )     —  
Payment for allowed secured and administrative claims
     (79 )     —         (79 )     —  
Professional service fees
     (31 )     (7 )       (38 )     (16 )
Other reorganization and emergence related payments
     (17 )     —         (17 )     (3 )
 
                          
Cash Used in Reorganization Activities
     (348 )     (7 )       (355 )     (19 )
 
                          
Cash Used in Operations – Continuing Operations
     (413 )     (57 )       (470 )     (119 )
Cash Provided by Operations – Discontinued Operations
     1       —         1       —  
 
                          
Cash Used in Operations
     (412 )     (57 )       (469 )     (119 )
 
                          
 
                                  
INVESTING ACTIVITIES:
                                  
Restricted cash for acquisition
     —       —         —       (150 )
Property, plant and equipment purchases
     (29 )     (5 )       (34 )     (36 )
Investment proceeds and property disposals, net
     —       —         —       4  
 
                          
Cash Used in Investing Activities-Continuing Operations
     (29 )     (5 )       (34 )     (182 )
Cash Used in Investing Activities-Discontinued Operations
     —       —         —       (1 )
 
                          
Cash Used in Investing Activities
     (29 )     (5 )       (34 )     (183 )
 
                          
 
                                  
FINANCING ACTIVITIES:
                                  
Proceeds from long-term debt obligations
     1,600       —         1,600       —  
Net change in long-term revolving credit facilities
     190       53         243       —  
Proceeds from stock issuance
     250       —         250       —  
Proceeds from short-term debt obligations
     —       —         —       325  
Payment of short-term debt obligations
     (966 )     —         (966 )     —  
Payment of long-term debt obligations
     (366 )     (3 )       (369 )     —  
Payment of debt obligations subject to compromise
     (221 )     —         (221 )     —  
Debt issuance costs
     (136 )     —         (136 )     (5 )
 
                          
Cash Provided by Financing Activities
      351       50          401        320  
 
                          
 
                                  
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
     (90 )     (12 )       (102 )     18  
CASH AND CASH EQUIVALENTS:
                                  
Beginning of period
      173       83          173        150  
 
                          
End of period
   $ 83     $ 71       $ 71     $ 168  
 
                          
 
                                  
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                                  
Cash payments for interest
   $ 43     $ 6       $ 49     $ 37  
Cash payments for income taxes
     4       1         5       2  

 

 

Notes to Editor: Saflex, CPFilms, Flexsys, Crystex, Therminol, Ascend and Vydyne are registered trademarks of Solutia Inc. and/or its subsidiaries.
Important Information Regarding Outlook
There is no guarantee that Solutia will achieve its projected financial expectation for 2008 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.
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 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® interlayer for laminated glass; CPFilms® aftermarket window films sold under the LLumar® brand and others; high-performance nylon polymers and fibers sold under brands such as Vydyne® and Wear-Dated®; and technical specialties including the Flexsys® family of chemicals for the rubber industry, Skydrol® aviation hydraulic fluid and Therminol® heat transfer fluid. 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 6,000 employees in more than 60 locations. More information is available at www.Solutia.com.
Source: Solutia Inc.
St. Louis