Ashland Inc. announced earnings results for the first quarter ended December 31, 2014. For the quarter, the company reported operating income of $169 million against $143 million a year ago. Adjusted operating income was $177 million against $143 million a year ago. Adjusted EBITDA was $262 million against $236 million a year ago. Diluted earnings per share from net income were $1.40 against $0.46 a year ago. From continuing operations diluted earnings per share was $0.57 against $1.12 a year ago. Adjusted EPS from continuing operations was $1.46 against $1.12 a year ago. Cash flows provided by operating activities from continuing operations were $50 million against $18 million a year ago. Earnings from continuing operations were $40 million against $88 million a year ago. Adjusted earnings from continuing operations grow 30%. Sales were $1.4 billion against $1.4 billion a year ago. Sales fell 3%, largely as a result of foreign exchange rates and divestitures. EBITDA increased 11% to $262 million. Capital spending in the first quarter totaled $43 million. This is in line with normal seasonality and will ramp up over the coming quarters. Free cash flow for the first quarter was $7 million, in line with normal seasonality.

The company expects fiscal 2015 tax rate to increase to 24% to 26%. The company continues to expect the capital spending for the full year to be $275 million to $300 million. For fiscal 2015, the company expects free cash flow of $290 million to $340 million. The company expects full year EBITDA margins to be in a 10% range as it gives back some of the raw material gains that it has seen in the first quarter and will see in the second quarter and as butane diol prices continue to fall. That's probably the most significant impact on the business as the year progresses. Utilization rates continue to fall in the global BDO market, and prices are following those utilization rates. So that will have an impact on the third quarter and fourth quarter and bring the overall EBITDA margin down somewhat below what was experienced in the first quarter.