| Ashland Inc. and Consolidated Subsidiaries | Page 1 | ||||||||||||
| STATEMENTS OF CONSOLIDATED INCOME | |||||||||||||
| (In millions except per share data - unaudited) | |||||||||||||
| Three months ended | Year ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| 2003 | 2002 | 2003 | 2002 | ||||||||||
| REVENUES | |||||||||||||
| Sales and operating revenues | $ | 2,130 | $ | 2,033 | $ | 7,518 | $ | 7,348 | |||||
| Equity income | 133 | 40 | 301 | 181 | |||||||||
| Other income | 2 | 12 | 46 | 47 | |||||||||
| 2,265 | 2,085 | 7,865 | 7,576 | ||||||||||
| COSTS AND EXPENSES | |||||||||||||
| Cost of sales and operating expenses | 1,708 | 1,586 | 6,005 | 5,756 | |||||||||
| Selling, general and administrative expenses | 386 | 348 | 1,390 | 1,291 | |||||||||
| Depreciation, depletion and amortization | 52 | 55 | 204 | 208 | |||||||||
| 2,146 | 1,989 | 7,599 | 7,255 | ||||||||||
| OPERATING INCOME | 119 | 96 | 266 | 321 | |||||||||
| Net interest and other financial costs | (32) | (34) | (128) | (138) | |||||||||
| INCOME FROM CONTINUING OPERATIONS | |||||||||||||
| BEFORE INCOME TAXES | 87 | 62 | 138 | 183 | |||||||||
| Income taxes | (26) | (21) | (44) | (68) | |||||||||
| INCOME FROM CONTINUING OPERATIONS | 61 | 41 | 94 | 115 | |||||||||
| Results from discontinued operations (net of income taxes) | 81 | 6 | (14) | 13 | |||||||||
| INCOME BEFORE CUMULATIVE EFFECT | |||||||||||||
| OF ACCOUNTING CHANGES | 142 | 47 | 80 | 128 | |||||||||
| Cumulative effect of accounting changes (net of income taxes) | (5) | - | (5) | (11) | |||||||||
| NET INCOME | $ | 137 | $ | 47 | $ | 75 | $ | 117 | |||||
| DILUTED EARNINGS PER SHARE | |||||||||||||
| Income from continuing operations | $ | .89 | $ | .59 | $ | 1.37 | $ | 1.64 | |||||
| Results from discontinued operations | 1.18 | .09 | (.19) | .19 | |||||||||
| Cumulative effect of accounting changes | (.08) | - | (.08) | (.16) | |||||||||
| Net income | $ | 1.99 | $ | .68 | $ | 1.10 | $ | 1.67 | |||||
| AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS | 69 | 69 | 69 | 70 | |||||||||
| SALES AND OPERATING REVENUES | |||||||||||||
| APAC | $ | 785 | $ | 791 | $ | 2,400 | $ | 2,652 | |||||
| Ashland Distribution | 723 | 660 | 2,804 | 2,535 | |||||||||
| Ashland Specialty Chemical | 300 | 285 | 1,170 | 1,094 | |||||||||
| Valvoline | 346 | 319 | 1,235 | 1,152 | |||||||||
| Intersegment sales | (24) | (22) | (91) | (85) | |||||||||
| $ | 2,130 | $ | 2,033 | $ | 7,518 | $ | 7,348 | ||||||
| OPERATING INCOME | |||||||||||||
| APAC | $ | (3) | $ | 58 | $ | (42) | $ | 122 | |||||
| Ashland Distribution | 5 | (7) | 32 | 1 | |||||||||
| Ashland Specialty Chemical | 10 | 19 | 31 | 70 | |||||||||
| Valvoline | 31 | 24 | 87 | 77 | |||||||||
| Refining and Marketing (a) | 118 | 33 | 263 | 143 | |||||||||
| Corporate | (42) | (31) | (105) | (92) | |||||||||
| $ | 119 | $ | 96 | $ | 266 | $ | 321 | ||||||
| __________ | |||||||||||||
| (a) | Includes Ashland's equity income from Marathon Ashland Petroluem LLC (MAP), amortization related to Ashland's excess | ||||||||||||
| investment in MAP, and other activities associated with refining and marketing. | |||||||||||||