Ashland Inc. Reports Preliminary Earnings Results for the First Quarter Ended December 31, 2013; Reaffirms Effective Tax Rate Guidance, Capital Expenditure Guidance for the Year 2014; Provides Sales Guidance for the Second Quarter of 2014
January 28, 2014 at 03:52 am IST
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Ashland Inc. reported preliminary earnings results for the first quarter ended December 31, 2013. For the quarter, the company reported operating income of $179 million compared to $176 million a year ago. Adjusted operating income was $179 million compared to $163 million a year ago. Adjusted EBITDA was $289 million compared to $268 million a year ago. Income from continuing operations of $111 million, or $1.42 per diluted share, on sales of $1.9 billion compared to $102 million, or $1.27 per diluted share, on sales of $1.9 billion a year ago. Diluted earnings per share were $1.40 compared to $1.26 a year ago. Adjusted EPS from continuing operations were $1.42 compared to $1.12 a year ago. Cash flow from operating activities was $37 million compared to $81 million a year ago. Negative free cash flow was $15 million compared to free cash flow of $30 million a year ago. Capital spending was $52 million for the quarter.
For the year 2014, the company continues to expect its effective tax rate to be approximately 25%, the company continues to expect its capital expenditure $275 million.
For the second quarter, the company expects sales to increase, leading to a slight improvement in EBITDA margin.
Ashland Inc. is a global specialty additives and materials company. The Company serves customers in a wide range of consumer and industrial markets, including architectural coatings, construction, energy, food and beverage, nutraceuticals, personal care, and pharmaceutical. The Company's segments include life sciences, personal care, specialty additives and intermediates. The life sciences segment is comprised of pharmaceuticals, nutrition, nutraceuticals, agricultural chemicals, diagnostic films and fine chemicals. The personal care segment is comprised of bio functionals, microbial protectants (preservatives), skin care, sun care, oral care, hair care and household solutions. The specialty additives segment is comprised of rheology and additives serving the architectural coatings, construction, energy, automotive and various industrial markets. Its Intermediates segment is comprised of the production of 1,4 butanediol (BDO) and related derivatives, including n-methyl pyrrolidone.
Ashland Inc. Reports Preliminary Earnings Results for the First Quarter Ended December 31, 2013; Reaffirms Effective Tax Rate Guidance, Capital Expenditure Guidance for the Year 2014; Provides Sales Guidance for the Second Quarter of 2014