Exhibit 99.1
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Year Ended September 30, 2010 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 5,741 | $ | - | $ | 5,741 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 4,058 | 66 | 4,124 | |||||||||
Selling, general and administrative expense | 1,168 | 162 | 1,330 | |||||||||
Research and development expense | 86 | - | 86 | |||||||||
5,312 | 228 | 5,540 | ||||||||||
Equity and other income | 48 | - | 48 | |||||||||
Operating income | 477 | (228 | ) | 249 | ||||||||
Net interest and other financing expense | (197 | ) | - | (197 | ) | |||||||
Net gain on acquisitions and divestitures | 21 | - | 21 | |||||||||
Other income | 2 | - | 2 | |||||||||
Income from continuing operations before income taxes | 303 | (228 | ) | 75 | ||||||||
Income tax expense (benefit) | 62 | (75 | ) | (13 | ) | |||||||
Income from continuing operations | 241 | (153 | ) | 88 | ||||||||
Income from discontinued operations | 91 | (38 | ) | 53 | ||||||||
Net income | $ | 332 | $ | (191 | ) | $ | 141 | |||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 3.10 | (1.96 | ) | $ | 1.14 | ||||||
Diluted | $ | 3.04 | (1.93 | ) | $ | 1.11 | ||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 4.26 | (2.45 | ) | $ | 1.81 | ||||||
Diluted | $ | 4.18 | (2.40 | ) | $ | 1.78 | ||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 78 | - | 78 | |||||||||
Diluted | 79 | - | 79 | |||||||||
Gross profit as a percentage of sales | 29.3 | % | -1.1 | % | 28.2 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 115 | $ | 10 | $ | 125 | ||||||
Water Technologies | 114 | 16 | 130 | |||||||||
Performance Materials | 23 | 9 | 32 | |||||||||
Consumer Markets | 262 | 8 | 270 | |||||||||
Unallocated and other | (37 | ) | (271 | ) | (308 | ) | ||||||
$ | 477 | $ | (228 | ) | $ | 249 | ||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 477 | $ | (228 | ) | $ | 249 | |||||
Depreciation and amortization | 280 | - | 280 | |||||||||
EBITDA | 757 | (228 | ) | 529 | ||||||||
Severance | 11 | - | 11 | |||||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | 268 | 268 | |||||||||
Adjusted EBITDA | $ | 768 | $ | 40 | $ | 808 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Year Ended September 30, 2009 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 5,220 | $ | - | $ | 5,220 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 3,732 | 118 | 3,850 | |||||||||
Selling, general and administrative expense | 1,115 | 284 | 1,399 | |||||||||
Research and development expense | 96 | - | 96 | |||||||||
4,943 | 402 | 5,345 | ||||||||||
Equity and other income | 34 | - | 34 | |||||||||
Operating income | 311 | (402 | ) | (91 | ) | |||||||
Net interest and other financing expense | (205 | ) | - | (205 | ) | |||||||
Net gain on acquisitions and divestitures | 59 | - | 59 | |||||||||
Other expense | (86 | ) | - | (86 | ) | |||||||
Income from continuing operations before income taxes | 79 | (402 | ) | (323 | ) | |||||||
Income tax expense (benefit) | 52 | (135 | ) | (83 | ) | |||||||
Income (loss) from continuing operations | 27 | (267 | ) | (240 | ) | |||||||
Income (loss) from discontinued operations | 44 | (65 | ) | (21 | ) | |||||||
Net income (loss) | $ | 71 | $ | (332 | ) | $ | (261 | ) | ||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 0.38 | (3.69 | ) | $ | (3.31 | ) | |||||
Diluted | $ | 0.37 | (3.68 | ) | $ | (3.31 | ) | |||||
Earnings per share from net income (loss) | ||||||||||||
Basic | $ | 0.98 | (4.58 | ) | $ | (3.60 | ) | |||||
Diluted | $ | 0.96 | (4.56 | ) | $ | (3.60 | ) | |||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 72 | - | 72 | |||||||||
Diluted | 73 | (1 | ) | 72 | ||||||||
Gross profit as a percentage of sales | 28.5 | % | -2.3 | % | 26.2 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 36 | $ | 8 | $ | 44 | ||||||
Water Technologies | 78 | 17 | 95 | |||||||||
Performance Materials | 1 | 9 | 10 | |||||||||
Consumer Markets | 252 | 7 | 259 | |||||||||
Unallocated and other | (56 | ) | (443 | ) | (499 | ) | ||||||
$ | 311 | $ | (402 | ) | $ | (91 | ) | |||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 311 | $ | (402 | ) | $ | (91 | ) | ||||
Depreciation and amortization | 315 | - | 315 | |||||||||
EBITDA | 626 | (402 | ) | 224 | ||||||||
Severance | 50 | - | 50 | |||||||||
Inventory fair value adjustment | 37 | - | 37 | |||||||||
Results of the Hercules business prior to acquisition | 35 | - | 35 | |||||||||
Plant closing costs | 4 | - | 4 | |||||||||
Currency gain on intracompany loan | (5 | ) | - | (5 | ) | |||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | 409 | 409 | |||||||||
Adjusted EBITDA | $ | 747 | $ | 7 | $ | 754 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Year Ended September 30, 2008 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 4,176 | $ | - | $ | 4,176 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 3,191 | 18 | 3,209 | |||||||||
Selling, general and administrative expense | 860 | 40 | 900 | |||||||||
Research and development expense | 48 | - | 48 | |||||||||
4,099 | 58 | 4,157 | ||||||||||
Equity and other income | 50 | - | 50 | |||||||||
Operating income | 127 | (58 | ) | 69 | ||||||||
Net interest and other financing income | 28 | - | 28 | |||||||||
Net gain on acquisitions and divestitures | 20 | - | 20 | |||||||||
Income from continuing operations before income taxes | 175 | (58 | ) | 117 | ||||||||
Income tax expense | 53 | (23 | ) | 30 | ||||||||
Income from continuing operations | 122 | (35 | ) | 87 | ||||||||
Income from discontinued operations | 45 | (16 | ) | 29 | ||||||||
Net income | $ | 167 | $ | (51 | ) | $ | 116 | |||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 1.95 | (0.56 | ) | $ | 1.39 | ||||||
Diluted | $ | 1.93 | (0.56 | ) | $ | 1.37 | ||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 2.65 | (0.82 | ) | $ | 1.83 | ||||||
Diluted | $ | 2.63 | (0.81 | ) | $ | 1.82 | ||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 63 | - | 63 | |||||||||
Diluted | 64 | - | 64 | |||||||||
Gross profit as a percentage of sales | 23.6 | % | -0.4 | % | 23.2 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | - | $ | - | $ | - | ||||||
Water Technologies | 10 | (2 | ) | 8 | ||||||||
Performance Materials | 52 | (3 | ) | 49 | ||||||||
Consumer Markets | 83 | (1 | ) | 82 | ||||||||
Unallocated and other | (18 | ) | (52 | ) | (70 | ) | ||||||
$ | 127 | $ | (58 | ) | $ | 69 | ||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 127 | $ | (58 | ) | $ | 69 | |||||
Depreciation and amortization | 121 | - | 121 | |||||||||
EBITDA | 248 | (58 | ) | 190 | ||||||||
Severance | 9 | - | 9 | |||||||||
Results of the Hercules business prior to acquisition | 381 | - | 381 | |||||||||
Ashland-Cargill JV write-off and other due diligence costs | 8 | - | 8 | |||||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | 60 | 60 | |||||||||
Adjusted EBITDA | $ | 646 | $ | 2 | $ | 648 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Year Ended September 30, 2007 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 3,923 | $ | - | $ | 3,923 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 2,903 | (44 | ) | 2,859 | ||||||||
Selling, general and administrative expense | 874 | (113 | ) | 761 | ||||||||
Research and development expense | 45 | - | 45 | |||||||||
3,822 | (157 | ) | 3,665 | |||||||||
Equity and other income | 46 | - | 46 | |||||||||
Operating income | 147 | 157 | 304 | |||||||||
Net interest and other financing income | 46 | - | 46 | |||||||||
Net gain on acquisitions and divestitures | (3 | ) | - | (3 | ) | |||||||
Income from continuing operations before income taxes | 190 | 157 | 347 | |||||||||
Income tax expense | 32 | 58 | 90 | |||||||||
Income from continuing operations | 158 | 99 | 257 | |||||||||
Income from discontinued operations | 72 | 46 | 118 | |||||||||
Net income | $ | 230 | $ | 145 | $ | 375 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 2.51 | 1.58 | $ | 4.09 | |||||||
Diluted | $ | 2.47 | 1.56 | $ | 4.03 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 3.66 | 2.31 | $ | 5.97 | |||||||
Diluted | $ | 3.60 | 2.27 | $ | 5.87 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 63 | - | 63 | |||||||||
Diluted | 64 | - | 64 | |||||||||
Gross profit as a percentage of sales | 26.0 | % | 1.1 | % | 27.1 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | - | $ | - | $ | - | ||||||
Water Technologies | 16 | 5 | 21 | |||||||||
Performance Materials | 89 | 8 | 97 | |||||||||
Consumer Markets | 86 | 5 | 91 | |||||||||
Unallocated and other | (44 | ) | 139 | 95 | ||||||||
$ | 147 | $ | 157 | $ | 304 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 147 | $ | 157 | $ | 304 | ||||||
Depreciation and amortization | 111 | - | 111 | |||||||||
EBITDA | 258 | 157 | 415 | |||||||||
APAC restructuring charge | 25 | - | 25 | |||||||||
Non-North American reporting lag elimination | (6 | ) | - | (6 | ) | |||||||
Results of the Hercules business prior to acquisition | 392 | - | 392 | |||||||||
Actuarial gain on pension and other postretirement plan remeasurement | - | (141 | ) | (141 | ) | |||||||
Adjusted EBITDA | $ | 669 | $ | 16 | $ | 685 |