Solutia surges after maintaining 2009 forecasts
Friday March 6, 2:33 pm ET
Solutia recovers as company backs full-year goals and continues to pursue nylon unit options
NEW YORK (AP) -- Shares of specialty chemicals and products maker Solutia Inc. jumped Friday after the company said its results in the first two months of the year were encouraging, and maintained its guidance.
The St. Louis-based company said it still expects a profit of $325 million to $350 million from continuing operations this year, before interest, taxes, depreciation and amortization costs. Cash from operations is expected to be between $25 million and $75 million, excluding capital spending.
Solutia first gave those forecasts in mid-February, when it reported its fourth-quarter results. In afternoon trading, the stock climbed 30 cents, or 25.4 percent, to $1.48.
In a press release, Solutia Chairman, President and Chief Executive Jeffry Quinn said the company performed better in February than it did in January despite fewer shipping days. Demand is down, he said, but the company is cutting costs and maintaining its profit margins.
Quinn also said the company is still pursuing strategic options for its nylon business. He said the company is in discussion with multiple partners for that business about a potential sale by the end of March.
Solutia shares lost more than half their value in recent days, falling to an all-time low of $1.04 Thursday. The stock has declined from an annual high of $18 in September.
Source: Associated Press
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