Solutia posts $10 million third-quarter operating income

By Caroline Salls

Pittsburgh, Nov. 10 - Solutia Inc. reported a $10 million operating income for the third quarter on net sales of $676 million, according to its 10-Q filing with the Securities and Exchange Commission.

The operating income shows a decline from a $33 million operating income for the same quarter of 2004. Net sales for the 2004 third quarter were slightly higher at $678 million.

According to the filing, decline in operating income as compared to the third quarter of 2004 resulted primarily from the absence of one-time gains incurred in 2004, higher raw material and energy costs, costs incurred as a result of hurricanes Katrina and Rita and moderately lower net sales.

The net loss for the three months ended Sept. 30 was $15 million, down from an $18 million net loss in the third quarter of 2004.

Cash and cash equivalents as of Sept. 30 were $82 million, compared with $115 million on Dec. 31, 2004.

For the first nine months of 2005, Solutia posted operating income of $82 million on net sales of $2.16 billion, compared with an operating loss of $11 million for the first nine months of 2004 on net sales of $2.02 billion.

The net income for the nine months through Sept. 30 was $20 million, compared to a $260 million net loss for the same period in 2004.

Solutia, a St. Louis-based manufacturer and provider of films, chemicals and nylon products, filed for bankruptcy on Dec. 17, 2003 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 03-17949.

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