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| Ashland
Inc. and Consolidated Subsidiaries |
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Page 1 |
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| STATEMENTS
OF CONSOLIDATED INCOME |
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| (In
millions except per share data - preliminary and unaudited) |
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Three months
ended |
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Six months
ended |
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March 31 |
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March 31 |
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2008 |
|
2007 |
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2008 |
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2007 |
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| SALES
AND OPERATING REVENUES |
$ |
2,059 |
|
$ |
1,915 |
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$ |
3,964 |
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$ |
3,717 |
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| COSTS
AND EXPENSES |
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|
Cost of sales and operating expenses |
|
1,725 |
|
1,575 |
|
3,314 |
|
3,064 |
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Selling, general and administrative expenses (a) |
|
292 |
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|
309 |
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|
573 |
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|
574 |
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2,017 |
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1,884 |
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3,887 |
|
3,638 |
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| EQUITY
AND OTHER INCOME |
|
10 |
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|
10 |
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21 |
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|
20 |
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| OPERATING INCOME |
|
52 |
|
41 |
|
98 |
|
99 |
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Gain (loss) on the MAP Transaction (b) |
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22 |
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(4) |
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22 |
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(4) |
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Net interest
and other financing income |
|
8 |
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9 |
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21 |
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|
25 |
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| INCOME FROM CONTINUING
OPERATIONS |
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BEFORE INCOME TAXES |
|
82 |
|
46 |
|
141 |
|
120 |
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Income tax expense |
|
10 |
|
|
15 |
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|
31 |
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|
36 |
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| INCOME FROM CONTINUING OPERATIONS |
|
72 |
|
31 |
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|
110 |
|
84 |
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Income (loss) from discontinued operations (net of income
taxes) (c) |
|
- |
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18 |
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(5) |
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14 |
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| NET INCOME |
$ |
72 |
|
$ |
49 |
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$ |
105 |
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$ |
98 |
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| DILUTED EARNINGS PER SHARE |
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Income from continuing operations |
$ |
1.13 |
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$ |
.49 |
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$ |
1.74 |
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$ |
1.30 |
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Income (loss) from discontinued operations |
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- |
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|
.28 |
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(.09) |
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|
.22 |
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Net income |
$ |
1.13 |
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$ |
.77 |
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$ |
1.65 |
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$ |
1.52 |
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| AVERAGE COMMON SHARES
AND ASSUMED CONVERSIONS |
|
63 |
|
64 |
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63 |
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64 |
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| SALES
AND OPERATING REVENUES |
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Performance Materials |
$ |
398 |
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$ |
376 |
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$ |
769 |
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$ |
742 |
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Distribution |
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1,082 |
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1,008 |
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2,072 |
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1,956 |
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Valvoline |
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401 |
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382 |
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781 |
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734 |
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Water Technologies |
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217 |
|
190 |
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423 |
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368 |
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Intersegment sales |
|
(39) |
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(41) |
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(81) |
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(83) |
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$ |
2,059 |
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$ |
1,915 |
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$ |
3,964 |
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$ |
3,717 |
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| OPERATING INCOME |
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Performance Materials |
$ |
20 |
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$ |
23 |
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$ |
31 |
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$ |
48 |
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Distribution |
|
13 |
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|
20 |
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19 |
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|
34 |
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Valvoline |
|
24 |
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22 |
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44 |
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|
40 |
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Water Technologies |
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(2) |
|
6 |
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3 |
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12 |
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Unallocated and other (a) |
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(3) |
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(30) |
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|
1 |
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(35) |
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$ |
52 |
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$ |
41 |
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$ |
98 |
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$ |
99 |
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| (a) |
The
three and six months ended March 31, 2007 includes a $25 million charge for
costs associated with Ashland's voluntary severance offer. |
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| (b) |
"MAP
Transaction" refers to the June 30, 2005 transfer of Ashland’s 38%
interest in Marathon Ashland Petroleum LLC (MAP) and two other businesses to
Marathon Oil Corporation. The income
for the current periods presented is primarily due to a $23 million gain
associated with a tax settlement agreement entered into with Marathon Oil
Corporation, relating to four specific tax areas, that supplement the
original Tax Matters Agreement from the initial MAP Transaction. The loss in the prior periods presented
reflects adjustments in the recorded receivable for future estimated tax
deductions related primarily to environmental and other postretirement
reserves. |
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| (c) |
The
three and six months ended March 31, 2007 includes income of $18 million, net
of income taxes, from an increase in Ashland's asbestos insurance
receivable. |
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