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Solutia re-affirms full-year guidance

source: china textile 2009-06-18  

Solutia Inc announced that based on its performance through May, it is re-affirming its full-year 2009 adjusted EBITDA guidance from continuing operations of $325 million to $350 million and its full-year 2009 total cash from operations less capital expenditures guidance of $50 to $100 million.

Net sales were $130 million for April and $131 million for May, compared to $339 million for the first quarter or an average of $113 million per month. This improvement was driven by stronger volumes, primarily related to the completion of downstream inventory destocking.

Adjusted EBITDA was $29 million for April and $29 million for May, compared to $56 million for the first quarter or an average of $19 million per month. Adjusted EBITDA margins were 22.0 percent for April and 22.4 percent for May, compared to 16.4 percent for first quarter. Margin expansion was driven by cost containment activities as well as a declining raw material cost profile.

Solutia's gross debt is approximately $1,269 billion and its liquidity (cash on hand plus available borrowings) is approximately $145 million. These figures are based upon results as of May 31, 2009, adjusted for the sale of the company's Nylon business, which was completed June 1, 2009. As of March 31, 2009, gross debt was $1,349 billion and liquidity, adjusted for the sale of the company's nylon business, was $127 million.