Washington, DC, November 8, 2006--Solutia Inc. said Tuesday that for the third quarter ended Sept. 30 it swung to third-quarter net income of $44 million, or 42 cents a share, from net loss of $15 million, or 14 cents a share, for the year-ago quarter, according to a quarterly report released by the Securities and Exchange Commission.
Sales for the company, according to the filing, rose to $738 million in the third-quarter from $661 million during the same time in 2005.
Solutia has been operating under Chapter 11 protection in the U.S. Bankruptcy Court in Manhattan since December 2003. The company recorded $19 million in reorganization costs in the third-quarter, compared with $15 million during the same time last year.
Solutia filed a Chapter 11 reorganization plan in February that provides for former parent Monsanto Co. (MON) to backstop a $250 million rights offering and fund costs of environmental cleanup and retiree benefits, but the plan has been held up by the two lawsuits.
A hearing on the disclosure statement that explains the plan's terms in non-legal language, is scheduled for Nov. 16. Solutia can't send its reorganization plan to creditors for a vote until the statement is approved.
