ERJ staff report (DS)
St Louis, Missouri -- The restructuring of the Flexsys business is essentially complete. The announcement was made during an analyst conference with SOlutia, Flexsys parent.
Jeff Quinn, Solutia's Chairman, President and Chief Executive Officer tols analysts, "we are done with the promised reshaping of that portion [Flexsys] of our portfolio." He added, "During the quarter, since we completed the promised reshaping of the other rubber chemical businesses by selling our DTC and Santoweb and Vocol businesses, these businesses combined would have accounted for about $40 million of revenue, last year with EBITDA about $7 million."
He said, "What remains left in the Other Rubber Chemicals businesses is only about $15 million in revenue." Essentially the remaining rubber chemicals business is the Crystex insoluble sulphur business and the Santofles accelerator activity. Quinn did not say if the company wants to divest thiese activities.
Jim Sullivan, Executive Vice President and Chief Financial Officer said, "During the quarter, we recognised gains totaling $17 million on the sale of Other Rubber Chemicals businesses." he added, "Volumes were up 11 percent, average selling prices were up 2 percent. Crystex volumes remained very strong in the quarter, up about 10 percent year-over-year, generally driven by strong demand in the global tyre market, in particular, truck and bus.
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Transcript of Solutia's analysts call from Seeling Alpha