Solutia Outlines 2011 Guidance and Reveals New Global Brand Identity

ST. LOUIS, Nov. 10, 2010 /PRNewswire-FirstCall/ -- At its 2010 Investor Day, Solutia Inc. (NYSE: SOA) a leading specialty chemicals and performance materials company, commented on its outlook and introduced its new global brand identity, built on the pillars of Ingenuity, Productivity and Performance.  

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"The introduction of our new global brand identity, together with our outlook, sends a clear message that Solutia has become a leader in the specialty chemicals and performance materials sector and is dedicated to providing value to its customers and shareholders alike," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc.  "The Solutia of today combines innovative solutions and best-in-class technical service with the proven capability to serve global markets.  This positions the company well to enjoy continued success in 2011 and beyond."  

2011 Guidance and Outlook

Solutia disclosed that in 2011 it expects to generate revenue of $2.1 to $2.2 billion, achieve Adjusted EBITDA in the range of $560 million to $600 million, and deliver Adjusted EPS from continuing operations of $2.00 to $2.25.  Solutia also once again reaffirmed its full year 2010 earnings outlook at the high end of previous guidance with Adjusted EBITDA and Adjusted EPS ranged from $480 million to $500 million and $1.40 to $1.50, respectively.

"Not only do we continue to benefit from economic recovery in established markets and growth in emerging economies, we are also well positioned for growth in new products featuring our innovative technologies," said James R. Voss, executive vice president and chief operating officer.  "I have great confidence in Solutia's ability to deliver on the expectations announced today, due to our continued strong commercial execution, focus on operational excellence, and our organization's high-performance culture."

During the investor day event, Quinn also shared the company's longer term outlook.  "I believe strongly in the future of our businesses.  This portfolio has the potential to produce $3.5 billion in revenue by 2015, while growing EBITDA to over $1 billion," he stated.  "These are targets we will pursue with the same dedication that has characterized our transformation of this company."

Capital Structure Update

On November 8, 2010, Moody's Investors Service upgraded the corporate family rating of Solutia Inc. from B1 to Ba3, with a stable outlook.  Moody's also increased the company's unsecured notes rating from B2 to B1, and its secured credit facility from Ba2 to Ba1.  On November 9, 2010, based on continued strong cash generation in the fourth quarter, Solutia made an additional voluntary pay down on its Term Loan of $50 million. 

"Our commitment to maintain a strong balance sheet remains of utmost importance as we continue to reduce leverage while funding high-returning growth capital investments," said James M. Sullivan, executive vice president and chief financial officer.    

New Global Brand Identity

Solutia's position as a leading specialty chemical and performance materials company is a result of the organization's commitment to its pillars of success – Ingenuity, Productivity and Performance.  "Ingenuity" represents Solutia's intelligence, technical skill and innovation. "Productivity" represents Solutia's commitment to continuous improvement and employee empowerment. "Performance" represents Solutia's dedication to optimum quality, consistency and world-class support.

"Ingenuity, Productivity and Performance reflect the strength, vitality and spirit of Solutia as a global market leader, as well as the employees that drive its success," added Quinn. "By leveraging our new global Solutia brand, in addition to our product brand names, we will be able to further drive revenue, strengthen relationships with vendors and customers around the world, as well as continue to recruit and retain top employee talent."

Solutia's new corporate overview outlining our new global brand identity can be found at www.solutia.com .  Solutia's 2010 Investor Day materials can be found at www.solutia.com and a replay of the event will be available at 2 p.m. today at www.solutia.com for two weeks or by calling 888-286-8010 (U.S.) or 617-801-6888 (International) and entering the pass code 29198317.  

Notes to Editor:  Solutia, and the Radiance Logo® and all other trademarks listed below are trademarks of Solutia Inc. and/or its affiliates.

Forward Looking Statements

This press release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "may," "will," "intends," "plans," "estimates" or "anticipates," or other comparable terminology, or by discussions of strategy, plans or intentions.  These statements are based on management's current expectations and assumptions about the industries in which Solutia operates.  Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements.  These risks and uncertainties include, but are not limited to, those risk and uncertainties described in Solutia's most recent Annual Report on Form 10-K, including under "Cautionary Statement About Forward Looking Statements" and "Risk Factors", and Solutia's quarterly reports on Form 10-Q.  These reports can be accessed through the "Investors" section of Solutia's website at www.solutia.com .  Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.

Corporate Profile

Solutia is a market-leading performance materials and specialty chemicals company. The company focuses on providing solutions for a better life through a range of products, including: Saflex® polyvinyl butyral interlayers for glass lamination and for photovoltaic module encapsulation and VISTASOLAR® ethylene vinyl acetate films for photovoltaic module encapsulation;  LLumar®, Vista™, EnerLogic™, FormulaOne®, Gila®, V-KOOL®, Huper Optik®, IQue™, Sun-X® and Nanolux® aftermarket performance films for automotive and architectural applications; Flexvue™ advanced film component solutions for solar and electronic technologies; and technical specialties products including Crystex® insoluble sulfur, Santoflex® PPD antidegradants, Therminol® heat transfer fluids and Skydrol® aviation hydraulic fluids. Solutia's businesses are world leaders in each of their market segments. With its headquarters in St. Louis, Missouri, USA, the company operates globally with approximately 3,400 employees in more than 50 worldwide locations. More information is available at www.Solutia.com .

SOURCE Solutia Inc.