COVINGTON, Ky., Sept. 19 /PRNewswire-FirstCall/ -- In remarks today,
Ashland Inc. (NYSE: ASH) Senior Vice President and Chief Financial Officer
J. Marvin Quin provided participants in the Credit Suisse 19th Annual
Chemical Conference in New York City an update on the company's outlook for
its fiscal fourth quarter, ending Sept. 30, 2006.
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Commenting on Valvoline, Quin estimated that it would incur an
operating loss due to weak operating margins, especially early in the
current quarter. "The previously disclosed price increase of roughly 50
cents per gallon does appear to be holding," said Quin, "so we are more
optimistic about the next quarter, beginning Oct. 1, which should be
profitable." Quin also noted that the establishment of a $3 million reserve
related to the sale of 33 Valvoline Instant Oil Change stores will
contribute to the operating loss.
Commenting on Ashland's other divisions, Quin said, "Performance
Materials and Distribution have performed well thus far this quarter.
Performance Materials should produce operating results well above the prior
year, and Distribution should report solid profit growth."
Quin noted that Ashland's Water Technologies division is also
performing better, due in large part to the operating income produced by
the Environmental and Process Solutions flocculants business acquired from
Degussa AG in May 2006.
Concluding, Quin said, "I do want to caution that we may record
restructuring and severance charges in the quarter that are not reflected
in my outlook. Also, we are now conducting our regular quarterly review of
various assets and contingent liabilities, including insurance receivables
and environmental remediation, and the associated reserves could increase
or decrease. In total, we do not expect reserve adjustments to be material
to Ashland as a whole. Of course, these items may impact some divisions
more than others. However, we cannot accurately project the impact of these
items until our accounting close processes are complete."
An audio replay of Quin's complete remarks will be available through
the Ashland Inc. website at http://www.ashland.com within 24 hours of the live
presentation and will be archived on Ashland's website for 90 days.
Supporting materials will be available for 12 months. Copies of the
presentation can also be requested by sending an e-mail to
investor_relations@ashland.com, or by calling 859-815-4454.
Ashland plans to release its fiscal fourth-quarter earnings at 8 a.m.,
ET, on Oct. 30.
Ashland Inc. (NYSE: ASH), a diversified, global chemical company,
provides quality products, services and solutions to customers in more than
100 countries. A FORTUNE 500 company, it operates through four wholly owned
divisions: Ashland Performance Materials, Ashland Distribution, Valvoline
and Ashland Water Technologies. To learn more about Ashland, visit
http://www.ashland.com.
FORTUNE 500 is a registered trademark of Time Inc.
Forward-Looking Statements
This news release contains forward-looking statements, within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, with respect to Ashland's operating
performance. These estimates are based upon a number of assumptions,
including those mentioned within this news release. Such estimates are also
based upon internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, weather, operating
efficiencies and economic conditions, such as prices, supply and demand,
cost of raw materials, and legal proceedings and claims (including
environmental and asbestos matters). Although Ashland believes its
expectations are based on reasonable assumptions, it cannot assure the
expectations reflected herein will be achieved. This forward-looking
information may prove to be inaccurate and actual results may differ
significantly from those anticipated if one or more of the underlying
assumptions or expectations proves to be inaccurate or is unrealized or if
other unexpected conditions or events occur. Other factors and risks
affecting Ashland are contained in Ashland's Form 10-K, as amended, for the
fiscal year ended Sept. 30, 2005. Ashland undertakes no obligation to
subsequently update or revise the forward-looking statements made in this
news release to reflect events or circumstances after the date of this
release.
SOURCE Ashland Inc.
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CONTACT:
Media Relations, Jim Vitak, +1-614-790-3715,
or jevitak@ashland.com, or Investor Relations, Daragh Porter,
+1-859-815-3825, or dlporter@ashland.com, both of Ashland Inc.
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