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UPDATE 1-Solutia Q3 tops estimates, ups FY adj EBITDA view

Mon Oct 26, 2009 5:19pm EDT

Stocks

   

* Q3 adj EPS $0.37 beats est $0.27

* Q3 rev $448 mln vs est $436 mln

* Raises FY adj EBITDA view to $350-$365 mln

* Shares up 2 pct in after-market trade

Oct 26 (Reuters) - Solutia Inc (SOA.N) posted a strong third-quarter profit, helped by an improvement in sales volumes and cost-cutting actions, and raised its adjusted EBITDA view, citing increasing demand.

For the full year, the specialty chemicals and materials company now expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations of $350 million to $365 million, up from its prior forecast of $340 million to $360 million.

"While a seasonal slowdown is expected in the fourth quarter, the company's current view is that there will be a gradual increase in underlying demand with overall sales in the quarter approximating 2008 levels," Solutia said in a statement.

In the latest quarter ended Sept. 30, net income attributable to Solutia was $29 million, or 24 cents a share, compared with a loss of $7 million, or 9 cents a share, a year ago. Adjusted earnings per share was 37 cents a share.

Analysts, on average, were looking for earnings of 27 cents a share, before items, according to Thomson Reuters I/B/E/S.

Revenue for the quarter dropped 24 percent to $448 million, but beat analysts' mean view of $436 million.

Shares of the company rose 2 percent to $13 in trading after the bell. They closed at $12.69 Monday on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Pradeep Kurup)



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