Volume 35, Number 10, October 2000
Solutia Reports Disheartening Figures for Second Quarter and Yearly Outlook
St. Louis-based Solutia Inc. has reported its net income for the second quarter of 2000 as approximately $35 million at 32 cents a share. The figures are down from last year, when the companys net income was $71 million for the second quartertwice this yearsat 61 cents per share.
John Hunter, chairman and chief executive officer of Solutia Inc., said that despite figures, the company remains strong. Solutia continues to achieve strong volumes and revenue growth, Hunter said. However, our second quarter results illustrate the negative impact of rapidly rising raw material costs and the lower value of the EURO compared to the U.S. dollar.
Solutia achieved a free cash flow of $20 million during the second quarter, which the company plans to use to pay debts and repurchase shares of the company.
In addition, following the return of its second quarter results, Solutia reduced its earnings outlook for 2000, based on the current price of crude oil and natural gas and the currency exchange rate. The company expects its annual earnings to fall by 15 percent this year also due to higher raw material and energy costs, along with the weakening of the EURO dollar.
We continue to respond aggressively to the extraordinary challenges facing Solutia and its peers in the chemical industry, Hunter said. However, he expects matters to improve in future years. Should current uncertainty in political and economic conditions subside for the coming year, Solutia expects to deliver on its promise of greater than 10 percent earnings per share growth in 2001 and beyond.
Flour City International Inc. Releases Third Quarter Financial StatementFlour City International Inc. of Kingsport, Tenn., recently reported its third quarter financial results and announced that it has named Johnson Fong, executive vice president, as interim chief financial officer.
The company reported a net income of $662,000 at $0.12 per share. In addition, for the first three quarters of 2000, Flour City International reported that it made net revenues of $47,433,000, with a net income of $1,642,000.
We are pleased with the results of our strategic approaches to increasing revenues, improving our gross margins, and reducing our sales, general and administrative expense, said Edward M. Boyle, president. For the quarter, our operating expenses are down 42 percent from a year ago. And, for the first time in three quarters, we have reduced operating expenses by $1.9 million.
The month of September brought dropping temperatures and stocks for 12 of the publicly traded glass companies or companies that own glass concerns. These companies reported a decrease for the month, with Alcoa diving 30 percent from last month. However, five companies did fare well. Among them, Apogee soared above the rest with an increase of 25 percent.
(Aug 31 - Sept. 28)
|3M Corp. (MMM)||93-91.625||78.18-103.81||19.9|
owns Alumax & Kawneer
|Applied Films Corp. (AFCO)||34.75-29.5||3.00-42.00||42.1|
|Butler Mfg. (BBR)
|Dow Chemical (DOW)||26.19-24.25||23.81-47.16||10.7|
|Dwyer Group (DWYR)
owns the Glass Doctor
|Flour City Intl (FCIN)||3.81-3.5||1.31-6.00||9.0|
|Lilly Industries (LI)||30.63-29.625||10.50-30.75||21.5|
|Pilkington plc (PILK)||92-95 pounds||NA||NA|
|ThermoView Ind. (THV)||.75-.63||.62-7.12||NE|
owns VVP America
NA = Not Applicable; NE = Negative Earnings
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