COVINGTON, Ky., Oct. 21 /PRNewswire-FirstCall/ -- Ashland Inc. (NYSE:
ASH) today stated that preliminary(1) earnings from continuing operations
for its fiscal fourth quarter, ended Sept. 30, 2008, are expected to be
near breakeven, due to several factors.
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Ashland Water Technologies is expected to record a loss for the
September quarter, primarily due to a significant reduction in gross profit
percentage across all regions, with September being particularly weak.
Ashland Distribution experienced lower volumes than anticipated due to
weakness in both the North American and European markets and higher
selling, general and administrative expenses. Despite this, Ashland
Distribution is expected to report results about two-thirds of those
reported in the June 2008 quarter. This represents a significant
improvement over the 2007 September quarter, driven by improvement in gross
profit margin.
Ashland's results for the fourth quarter are expected to include
roughly $7 million of restructuring costs related to previously announced
cost- structure efficiency initiatives.
The effective tax rate for the fourth quarter is expected to be
substantially higher than prior quarters, reflecting adjustments to record
taxes at a full-year effective rate of roughly 33 percent.
The September 2008 quarter is also expected to include a loss from
discontinued operations of nearly $10 million, due to various adjustments
to asbestos-related insurance receivables resulting from Ashland's ongoing
assessment of these matters.
Ashland plans to release preliminary fiscal fourth-quarter results at 7
a.m., EDT, on Oct. 28.
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 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.
1 Preliminary Results
Financial results are preliminary until Ashland's annual report on Form
10-K for the fiscal year ended Sept. 30, 2008, is filed with the U.S.
Securities and Exchange Commission.
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 periodic filings made with the
SEC, including its Form 10-K for the fiscal year ended Sept. 30, 2007, and
Forms 10-Q for the quarters ended Dec. 31, 2007, and March 31 and June 30,
2008, which are available on Ashland's Investor Relations website at
http://www.ashland.com/investors or the SEC's website at http://www.sec.gov. 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 news release.
SOURCE Ashland Inc.
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http://www.ashland.com
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CONTACT:
Media Relations, Jim Vitak, +1-614-790-3715,
jevitak@ashland.com or Investor Relations, Eric Boni,
+1-859-815-4454, enboni@ashland.com, both of Ashland Inc.
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