Solar module encapsulant materials specialist, Solutia has guided lower revenue for the third quarter on the back of weaker than expected demand across its served markets including PV module manufacturing. Despite fallen module prices, PV installations have not rebounded to the degree envisioned and overcapacity remains an issue, reducing material demand.
“Coming out of the second quarter, we expected that sales volumes in our key product lines would experience growth in the back half of 2011 versus the first half of the year,” noted Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. “Unfortunately, we have not seen an improved volume pattern develop, and the self-fulfilling nature of lower economic expectations associated with continued volatility in financial markets over the past month has impacted the company's outlook for the remainder of the year.”
Solutia said it expects to generate EPS in the range of $.89 to $.99 in the back half of 2011 with approximately 45% of that expected in the third quarter and 55% in the fourth quarter, which translates to an increase in EPS of 24-31% from 2010.
