Solutia Reports First Quarter 2010 Results

Quinn, chairman, president and chief executive officer of Solutia Inc. "As sales volumes escalate, we are realizing the benefit of the significant operating leverage which we have created in our businesses. This gives us confidence in our ability to deliver record Adjusted EBITDA and Adjusted EPS for 2010 while maintaining our industry leading margins."
 
Consolidated Results from Continuing Operations
 
Solutia Inc. (NYSE: SOA) today reported a loss from continuing operations of $58 million for the first quarter 2010, compared to a loss of $4 million for the same period in 2009. These results were impacted by certain events affecting comparability (detailed below) which sum to a net charge of $98 million in 2010 and a net gain of $1 million in 2009. As described further in the table below, the 2010 events were primarily related to the write-off of $80 million of unamortized debt issuance costs and a $9 million prepayment penalty associated with the early extinguishment of our term loan and revolver and certain charges related to previously announced cost reduction and restructuring activities. After adjusting for these items, income from continuing operations was $40 million in the first quarter of 2010 or an increase of $45 million as compared to the first quarter of 2009. This significant year over year improvement was primarily due to increased sales volumes and lower raw material and manufacturing costs.
 
Consolidated EBITDA for the first quarter increased to $105 million from $51 million for the same period in 2009. After taking into consideration adjustments in both periods (as detailed below in the consolidated and segment sales, EBITDA and Adjusted EBITDA table), Adjusted EBITDA increased to $120 million from $56 million in the first quarter of 2009.
 
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