Exhibit 99.1
ITEM 6. SELECTED FINANCIAL DATA
FINANCIAL SUMMARY
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(Dollars and shares in millions, except
per share amounts) 2006 2005 2004 2003 2002
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OPERATING RESULTS:
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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:
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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:
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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:
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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
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<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.