Exhibit 99.1 ITEM 6. SELECTED FINANCIAL DATA FINANCIAL SUMMARY - ---------------------------------------------------------------------------------------------------------------------- (Dollars and shares in millions, except per share amounts) 2006 2005 2004 2003 2002 ---- ---- ---- ---- ---- OPERATING RESULTS: - ------------------ NET SALES $2,795 $2,645 $2,529 $2,268 $2,132 GROSS PROFIT 360 304 193 77 342 As percent of net sales 13% 11% 8% 3% 16% MARKETING, ADMINISTRATIVE, AND TECHNOLOGICAL EXPENSES 272 266 273 332 303 As percent of net sales 10% 10% 11% 15% 14% OPERATING INCOME (LOSS)(1) 87 37 (81) (259) 37 As percent of net sales 3% 1% (3)% (11)% 2% INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES (38) 13 (303) (497) (15) INCOME (LOSS) FROM CONTINUING OPERATIONS (2) (56) 3 (296) (893) (3) INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX 58 8 (24) (77) 26 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX -- (3) -- (5) (167) NET INCOME (LOSS) 2 8 (320) (975) (144) PER SHARE DATA: - --------------- BASIC AND DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS (2) $(0.54) $0.03 $(2.83) $(8.54) $(0.03) WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED 104.5 104.5 104.5 104.6 104.7 DIVIDENDS PER SHARE -- -- -- -- 0.04 COMMON STOCK PRICE: HIGH 0.75 1.69 1.39 4.89 13.20 LOW 0.28 0.33 0.15 0.23 2.81 CLOSE 0.75 0.45 1.17 0.37 3.63 FINANCIAL POSITION - CONTINUING OPERATIONS: - ------------------------------------------- TOTAL ASSETS $2,017 $1,884 $1,958 $2,313 $2,472 LIABILITIES NOT SUBJECT TO COMPROMISE 1,600 1,209 1,294 1,303 3,368 LIABILITIES SUBJECT TO COMPROMISE 1,849 2,176 2,187 2,220 -- LONG-TERM DEBT (3) 210 247 285 294 839 SHAREHOLDERS' DEFICIT (1,405) (1,433) (1,423) (1,100) (242) OTHER DATA FROM CONTINUING OPERATIONS: - -------------------------------------- WORKING CAPITAL (4) $ (280) $ (2) $ (20) $ 42 $ (285) INTEREST EXPENSE (5) 100 79 108 115 78 INCOME TAX EXPENSE (BENEFIT) (6) 18 10 (7) 396 (12) DEPRECIATION AND AMORTIZATION 109 109 118 125 123 CAPITAL EXPENDITURES 105 75 49 70 49 EMPLOYEES (YEAR-END) 5,100 5,400 5,700 6,300 7,300 - ---------------------------------------------------------------------------------------- ----------------------------- <FN> (1) Operating income (loss) includes net restructuring (gains)/charges and other items of ($7 million) in 2006, $14 million in 2005, $62 million in 2004, $228 million in 2003 and $22 million in 2002. (2) Income (loss) from continuing operations includes net restructuring charges and other (gains)/charges of $3 million, or ($0.03) per share in 2006, ($37) million, or ($0.35) per share in 2005, $146 million, or $1.40 per share in 2004, $793 million, or $7.58 per share in 2003, and $15 million, or $0.14 per share in 2002. (3) Long-term debt excludes $668 million as of December 31, 2006, 2005 and 2004 and $625 million as of December 31, 2003 of debt classified as subject to compromise in accordance with Statement of Position 90-7, Financial Reporting by Entities in Reorganization Under the Bankruptcy Code, as a result of Solutia's Chapter 11 bankruptcy filing in 2003. (4) Working capital is defined as total current assets less total current liabilities. (5) Interest expense includes the write-off of debt issuance costs of $8 million in 2006, $25 million in 2004 and $14 million in 2003 due to the early refinancing of the underlying debt facilities. (6) Income tax expense (benefit) includes an increase in valuation allowances of $24 million in 2006, $12 million in 2005, $108 million in 2004, and $542 million in 2003. See Management's Discussion and Analysis of Financial Condition and Results of Operations under Item 7 for more information.