Ashland Inc., a global leader in specialty chemical solutions for consumer and industrial markets, announced preliminary financial results for the quarter ended September 30, 2013, the fourth quarter of its 2013 fiscal year.
Highlights:
-Earnings from continuing operations total $5.13 per diluted share, which includes an actuarial gain on pension; adjusted earnings, excluding key items, equal $1.54 per diluted share
-Cash flow from operating activities in fiscal 2013 totals $791 million; Free cash flow for full year equals $529 million
- Sale process for Ashland Water Technologies underway
-Company announces expected $150-$200 million global restructuring program to improve competitiveness
Ashland's results as compared to the year-ago quarter were as follows:
- Volumes were flat;
- Sales declined 7 percent to $1.9 billion;
- Operating income declined 17 percent to $203 million;
- Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 11 percent to $310 million; and
- EBITDA as a percent of sales decreased 80 basis points to 16.2 percent.
Ashland reported income from continuing operations of $404 million, or $5.13 per diluted share, on sales of $1.9 billion. These results included five key items that together had a net favorable impact on continuing operations of approximately $283 million, net of tax, or $3.59 per diluted share.
The largest key item was a non-cash benefit of $3.98 per share related to an actuarial gain on pension as part of the company's standard year-end re-measurement. Excluding all key items, Ashland's adjusted earnings per share were $1.54.
For the year-ago quarter, Ashland reported a loss from continuing operations of $272 million, or $3.47 per diluted share, on sales of $2.1 billion. The year-ago results included five key items that together reduced income from continuing operations by approximately $422 million, net of tax, or $5.34 per diluted share.
The largest key items were a non-cash charge of $3.88 per share related to an actuarial loss on pension, and a charge of 80 cents per share related to debt refinancing during the quarter. Excluding all five key items, Ashland's adjusted income from continuing operations was $150 million, or $1.87 per diluted share.
