As the Company expected, the sharp decline in demand that commenced during the fourth quarter of 2008 continued through much of the first quarter of this year. During this period year over year volume declines were magnified by inventory destocking actions. Inventory levels for the most part now appear to be better aligned with the weaker downstream demand environment. The Company expects a relatively soft demand environment with some seasonal growth in the coming quarters and has taken additional actions to right-size the business to reflect these expectations.
Based on these actions, and the results of the first quarter which were consistent with management expectations, the Company is reiterating its Adjusted EBITDA target for 2009 in the range of $325 million to $350 million. On account of the strong cash generation in the first quarter, the Company is increasing its 2009 target range for cash from continuing operations less capital spending to $50 million to $100 million, from $25 million to $75 million.
First Quarter Conference Call
The Company will hold a conference call at 9 a.m. Central Time (10 a.m. Eastern Time) on Thursday, May 7, 2009, during which Solutia executives will elaborate upon the Company's first quarter 2009 financial results.
A live webcast of the conference call and slides will be available through the Investors section of www.solutia.com . The phone number for the call is 8
|SOURCE Solutia Inc.|
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