Solutia Announces Improved Second Quarter Earnings Outlook

Jun 13, 2002, 01:00 ET from Solutia Inc.

    ST. LOUIS, June 13 /PRNewswire-FirstCall/ -- Solutia Inc. (NYSE:   SOI)
 announced today that earnings for the second quarter are now expected to be
 around 20 cents per share, approximately 10 cents per share higher than
 previous guidance, due to improving global business conditions.
     Sequentially, sales volumes have shown steady improvement, as inventories
 remain low throughout the supply chain and consumer demand has strengthened in
 many of Solutia's businesses.  Additionally, the cost savings from Solutia's
 $100 million cost reduction initiative and a strengthening euro are having a
 positive impact on Solutia's bottom line.  This improved earnings outlook
 includes an approximate 5 cents per share loss due to a power outage from a
 lightning strike at the Chocolate Bayou facility in April, as well as higher
 than expected energy and raw material costs.
     "I am encouraged by recent signs of improvement in the global economy, as
 evidenced by our second quarter earnings," said John Hunter, chairman and
 chief executive officer.
     "We remain focused on the areas of our portfolio with the greatest impact
 on the bottom line.  Our cost savings initiative allowed us to streamline the
 way we conduct business, and our dedication to the portfolio strategy has
 given us the opportunity to expand into areas where customers reward our
 creativity and superb level of service.  Should the economic environment
 continue to recover, Solutia is well positioned to capitalize on the
 opportunities we have created," Hunter said.
 
     Forward Looking Statement
     This press release contains forward-looking statements regarding Solutia's
 second quarter earnings per share projections.  These statements are based on
 current expectations, but actual results may differ materially, depending on
 such important factors as world economic conditions, competitive pressures,
 raw material and energy pricing, currency fluctuations and other factors
 identified in Solutia's Annual Report on Form 10-K for the period ended
 December 31, 2001 and Quarterly Report on Form 10-Q for the period ended March
 31, 2002.  These reports are filed with the U.S. Securities and Exchange
 Commission and can be accessed through Solutia's investor Internet site at
 http://investor.solutia.com .
 
     Corporate Profile
     Solutia ( http://www.Solutia.com ) uses world-class skills in applied
 chemistry to create value-added solutions for customers, whose products
 improve the lives of consumers every day.  Solutia is a world leader in
 performance films for laminated safety glass and after-market applications;
 resins and additives for high-value coatings; process development and scale-up
 services for pharmaceutical fine chemicals; specialties such as water
 treatment chemicals, heat transfer fluids and aviation hydraulic fluid and an
 integrated family of nylon products including high-performance polymers and
 fibers.
     Solutia .... Solutions For A Better life.
 
 

SOURCE Solutia Inc.
    ST. LOUIS, June 13 /PRNewswire-FirstCall/ -- Solutia Inc. (NYSE:   SOI)
 announced today that earnings for the second quarter are now expected to be
 around 20 cents per share, approximately 10 cents per share higher than
 previous guidance, due to improving global business conditions.
     Sequentially, sales volumes have shown steady improvement, as inventories
 remain low throughout the supply chain and consumer demand has strengthened in
 many of Solutia's businesses.  Additionally, the cost savings from Solutia's
 $100 million cost reduction initiative and a strengthening euro are having a
 positive impact on Solutia's bottom line.  This improved earnings outlook
 includes an approximate 5 cents per share loss due to a power outage from a
 lightning strike at the Chocolate Bayou facility in April, as well as higher
 than expected energy and raw material costs.
     "I am encouraged by recent signs of improvement in the global economy, as
 evidenced by our second quarter earnings," said John Hunter, chairman and
 chief executive officer.
     "We remain focused on the areas of our portfolio with the greatest impact
 on the bottom line.  Our cost savings initiative allowed us to streamline the
 way we conduct business, and our dedication to the portfolio strategy has
 given us the opportunity to expand into areas where customers reward our
 creativity and superb level of service.  Should the economic environment
 continue to recover, Solutia is well positioned to capitalize on the
 opportunities we have created," Hunter said.
 
     Forward Looking Statement
     This press release contains forward-looking statements regarding Solutia's
 second quarter earnings per share projections.  These statements are based on
 current expectations, but actual results may differ materially, depending on
 such important factors as world economic conditions, competitive pressures,
 raw material and energy pricing, currency fluctuations and other factors
 identified in Solutia's Annual Report on Form 10-K for the period ended
 December 31, 2001 and Quarterly Report on Form 10-Q for the period ended March
 31, 2002.  These reports are filed with the U.S. Securities and Exchange
 Commission and can be accessed through Solutia's investor Internet site at
 http://investor.solutia.com .
 
     Corporate Profile
     Solutia ( http://www.Solutia.com ) uses world-class skills in applied
 chemistry to create value-added solutions for customers, whose products
 improve the lives of consumers every day.  Solutia is a world leader in
 performance films for laminated safety glass and after-market applications;
 resins and additives for high-value coatings; process development and scale-up
 services for pharmaceutical fine chemicals; specialties such as water
 treatment chemicals, heat transfer fluids and aviation hydraulic fluid and an
 integrated family of nylon products including high-performance polymers and
 fibers.
     Solutia .... Solutions For A Better life.
 
 SOURCE  Solutia Inc.