Exhibit 99.2
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Nine Months Ended June 30, 2011 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 4,656 | $ | - | $ | 4,656 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 3,411 | (49 | ) | 3,362 | ||||||||
Selling, general and administrative expense | 882 | (110 | ) | 772 | ||||||||
Research and development expense | 64 | - | 64 | |||||||||
4,357 | (159 | ) | 4,198 | |||||||||
Equity and other income | 42 | - | 42 | |||||||||
Operating income | 341 | 159 | 500 | |||||||||
Net interest and other financing expense | (88 | ) | - | (88 | ) | |||||||
Net gain on acquisitions and divestitures | 20 | - | 20 | |||||||||
Income from continuing operations before income taxes | 273 | 159 | 432 | |||||||||
Income tax expense | 46 | 58 | 104 | |||||||||
Income from continuing operations | 227 | 101 | 328 | |||||||||
Income from discontinued operations | 300 | 49 | 349 | |||||||||
Net income | $ | 527 | $ | 150 | $ | 677 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 2.89 | 1.29 | $ | 4.18 | |||||||
Diluted | $ | 2.83 | 1.27 | $ | 4.10 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 6.70 | 1.91 | $ | 8.61 | |||||||
Diluted | $ | 6.57 | 1.87 | $ | 8.44 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 78 | - | 78 | |||||||||
Diluted | 80 | - | 80 | |||||||||
Gross profit as a percent of sales | 26.7 | % | 1.1 | % | 27.8 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 109 | $ | 6 | $ | 115 | ||||||
Water Technologies | 73 | 10 | 83 | |||||||||
Performance Materials | 21 | 4 | 25 | |||||||||
Consumer Markets | 178 | 6 | 184 | |||||||||
Unallocated and other | (40 | ) | 133 | 93 | ||||||||
$ | 341 | $ | 159 | $ | 500 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 341 | $ | 159 | $ | 500 | ||||||
Depreciation and amortization | 211 | - | 211 | |||||||||
EBITDA | 552 | 159 | 711 | |||||||||
Environmental reserve adjustment | 6 | 6 | ||||||||||
Castings Solutions transaction and start-up costs | 3 | - | 3 | |||||||||
Actuarial gain on pension and other postretirement plan remeasurement | - | (120 | ) | (120 | ) | |||||||
Adjusted EBITDA | $ | 561 | $ | 39 | $ | 600 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended June 30, 2011 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,667 | $ | - | $ | 1,667 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 1,236 | (3 | ) | 1,233 | ||||||||
Selling, general and administrative expense | 304 | (6 | ) | 298 | ||||||||
Research and development expense | 22 | - | 22 | |||||||||
1,562 | (9 | ) | 1,553 | |||||||||
Equity and other income | 15 | - | 15 | |||||||||
Operating income | 120 | 9 | 129 | |||||||||
Net interest and other financing expense | (22 | ) | - | (22 | ) | |||||||
Net loss on acquisitions and divestitures | (1 | ) | - | (1 | ) | |||||||
Income from continuing operations before income taxes | 97 | 9 | 106 | |||||||||
Income tax expense | 28 | 3 | 31 | |||||||||
Income from continuing operations | 69 | 6 | 75 | |||||||||
Income from discontinued operations | 18 | - | 18 | |||||||||
Net income | $ | 87 | $ | 6 | $ | 93 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 0.88 | 0.08 | $ | 0.96 | |||||||
Diluted | $ | 0.86 | 0.08 | $ | 0.94 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 1.12 | 0.08 | $ | 1.20 | |||||||
Diluted | $ | 1.09 | 0.08 | $ | 1.17 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 78 | - | 78 | |||||||||
Diluted | 80 | - | 80 | |||||||||
Gross profit as a percent of sales | 25.9 | % | 0.1 | % | 26.0 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 50 | $ | 1 | $ | 51 | ||||||
Water Technologies | 22 | 2 | 24 | |||||||||
Performance Materials | 12 | - | 12 | |||||||||
Consumer Markets | 51 | 1 | 52 | |||||||||
Unallocated and other | (15 | ) | 5 | (10 | ) | |||||||
$ | 120 | $ | 9 | $ | 129 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 120 | $ | 9 | $ | 129 | ||||||
Depreciation and amortization | 68 | - | 68 | |||||||||
EBITDA | 188 | 9 | 197 | |||||||||
Environmental reserve adjustment | 6 | - | 6 | |||||||||
Actuarial gain on pension and other postretirement plan remeasurement | - | - | - | |||||||||
Adjusted EBITDA | $ | 194 | $ | 9 | $ | 203 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended March 31, 2011 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,557 | $ | - | $ | 1,557 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 1,135 | (41 | ) | 1,094 | ||||||||
Selling, general and administrative expense | 292 | (93 | ) | 199 | ||||||||
Research and development expense | 22 | - | 22 | |||||||||
1,449 | (134 | ) | 1,315 | |||||||||
Equity and other income | 14 | - | 14 | |||||||||
Operating income | 122 | 134 | 256 | |||||||||
Net interest and other financing expense | (39 | ) | - | (39 | ) | |||||||
Net gain on acquisitions and divestitures | - | - | - | |||||||||
Income from continuing operations before income taxes | 83 | 134 | 217 | |||||||||
Income tax (benefit) expense | (13 | ) | 48 | 35 | ||||||||
Income from continuing operations | 96 | 86 | 182 | |||||||||
Income from discontinued operations | 257 | 46 | 303 | |||||||||
Net income | $ | 353 | $ | 132 | $ | 485 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 1.22 | 1.08 | $ | 2.30 | |||||||
Diluted | $ | 1.20 | 1.06 | $ | 2.26 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 4.47 | 1.66 | $ | 6.13 | |||||||
Diluted | $ | 4.39 | 1.63 | $ | 6.02 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 79 | - | 79 | |||||||||
Diluted | 80 | - | 80 | |||||||||
Gross profit as a percent of sales | 27.1 | % | 2.6 | % | 29.7 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 41 | $ | 2 | $ | 43 | ||||||
Water Technologies | 27 | 4 | 31 | |||||||||
Performance Materials | 3 | 2 | 5 | |||||||||
Consumer Markets | 62 | 2 | 64 | |||||||||
Unallocated and other | (11 | ) | 124 | 113 | ||||||||
$ | 122 | $ | 134 | $ | 256 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 122 | $ | 134 | $ | 256 | ||||||
Depreciation and amortization | 70 | - | 70 | |||||||||
EBITDA | 192 | 134 | 326 | |||||||||
Castings Solutions transaction and start-up costs | - | - | - | |||||||||
Actuarial gain on pension and other postretirement plan remeasurement | - | (120 | ) | (120 | ) | |||||||
Adjusted EBITDA | $ | 192 | $ | 14 | $ | 206 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended December 31, 2010 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,433 | $ | - | $ | 1,433 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 1,040 | (5 | ) | 1,035 | ||||||||
Selling, general and administrative expense | 286 | (10 | ) | 276 | ||||||||
Research and development expense | 20 | - | 20 | |||||||||
1,346 | (15 | ) | 1,331 | |||||||||
Equity and other income | 12 | - | 12 | |||||||||
Operating income | 99 | 15 | 114 | |||||||||
Net interest and other financing expense | (27 | ) | - | (27 | ) | |||||||
Net gain on acquisitions and divestitures | 21 | - | 21 | |||||||||
Income from continuing operations before income taxes | 93 | 15 | 108 | |||||||||
Income tax expense | 31 | 6 | 37 | |||||||||
Income from continuing operations | 62 | 9 | 71 | |||||||||
Income from discontinued operations | 25 | 3 | 28 | |||||||||
Net income | $ | 87 | $ | 12 | $ | 99 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 0.79 | 0.13 | $ | 0.92 | |||||||
Diluted | $ | 0.78 | 0.13 | $ | 0.91 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 1.11 | 0.16 | $ | 1.27 | |||||||
Diluted | $ | 1.09 | 0.16 | $ | 1.25 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 79 | - | 79 | |||||||||
Diluted | 80 | - | 80 | |||||||||
Gross profit as a percent of sales | 27.4 | % | 0.4 | % | 27.8 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 19 | $ | 3 | $ | 22 | ||||||
Water Technologies | 24 | 4 | 28 | |||||||||
Performance Materials | 6 | 2 | 8 | |||||||||
Consumer Markets | 65 | 2 | 67 | |||||||||
Unallocated and other | (15 | ) | 4 | (11 | ) | |||||||
$ | 99 | $ | 15 | $ | 114 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 99 | $ | 15 | $ | 114 | ||||||
Depreciation and amortization | 73 | - | 73 | |||||||||
EBITDA | 172 | 15 | 187 | |||||||||
Castings Solutions transaction and start-up costs | 3 | - | 3 | |||||||||
Actuarial gain on pension and other postretirement plan remeasurement | - | - | - | |||||||||
Adjusted EBITDA | $ | 175 | $ | 15 | $ | 190 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended September 30, 2010 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,516 | $ | - | $ | 1,516 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 1,123 | 75 | 1,198 | |||||||||
Selling, general and administrative expense | 299 | 184 | 483 | |||||||||
Research and development expense | 23 | - | 23 | |||||||||
1,445 | 259 | 1,704 | ||||||||||
Equity and other income | 8 | - | 8 | |||||||||
Operating income | 79 | (259 | ) | (180 | ) | |||||||
Net interest and other financing expense | (27 | ) | - | (27 | ) | |||||||
Net gain on acquisitions and divestitures | 4 | - | 4 | |||||||||
Other income | 1 | - | 1 | |||||||||
Income from continuing operations before income taxes | 57 | (259 | ) | (202 | ) | |||||||
Income tax expense (benefit) | 3 | (84 | ) | (81 | ) | |||||||
Income (loss) from continuing operations | 54 | (175 | ) | (121 | ) | |||||||
Income (loss) from discontinued operations | 22 | (42 | ) | (20 | ) | |||||||
Net income (loss) | $ | 76 | $ | (217 | ) | $ | (141 | ) | ||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 0.69 | (2.22 | ) | $ | (1.53 | ) | |||||
Diluted | $ | 0.68 | (2.21 | ) | $ | (1.53 | ) | |||||
Earnings per share from net income (loss) | ||||||||||||
Basic | $ | 0.97 | (2.76 | ) | $ | (1.79 | ) | |||||
Diluted | $ | 0.96 | (2.75 | ) | $ | (1.79 | ) | |||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 79 | - | 79 | |||||||||
Diluted | 80 | (1 | ) | 79 | ||||||||
Gross profit as a percentage of sales | 25.9 | % | -4.9 | % | 21.0 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 19 | $ | 2 | $ | 21 | ||||||
Water Technologies | 19 | 4 | 23 | |||||||||
Performance Materials | (2 | ) | 2 | - | ||||||||
Consumer Markets | 52 | 2 | 54 | |||||||||
Unallocated and other | (9 | ) | (269 | ) | (278 | ) | ||||||
$ | 79 | $ | (259 | ) | $ | (180 | ) | |||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 79 | $ | (259 | ) | $ | (180 | ) | ||||
Depreciation and amortization | 71 | - | 71 | |||||||||
EBITDA | 150 | (259 | ) | (109 | ) | |||||||
Severance | 11 | - | 11 | |||||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | 268 | 268 | |||||||||
Adjusted EBITDA | $ | 161 | $ | 9 | $ | 170 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended June 30, 2010 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,478 | $ | - | $ | 1,478 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 1,037 | (3 | ) | 1,034 | ||||||||
Selling, general and administrative expense | 291 | (8 | ) | 283 | ||||||||
Research and development expense | 23 | - | 23 | |||||||||
1,351 | (11 | ) | 1,340 | |||||||||
Equity and other income | 12 | - | 12 | |||||||||
Operating income | 139 | 11 | 150 | |||||||||
Net interest and other financing expense | (26 | ) | - | (26 | ) | |||||||
Net gain on acquisitions and divestitures | 23 | - | 23 | |||||||||
Other income | - | - | - | |||||||||
Income from continuing operations before income taxes | 136 | 11 | 147 | |||||||||
Income tax expense | 19 | 3 | 22 | |||||||||
Income from continuing operations | 117 | 8 | 125 | |||||||||
Income from discontinued operations | 31 | 1 | 32 | |||||||||
Net income | $ | 148 | $ | 9 | $ | 157 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 1.49 | 0.09 | $ | 1.58 | |||||||
Diluted | $ | 1.46 | 0.09 | $ | 1.55 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 1.89 | 0.12 | $ | 2.01 | |||||||
Diluted | $ | 1.85 | 0.11 | $ | 1.96 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 78 | - | 78 | |||||||||
Diluted | 80 | - | 80 | |||||||||
Gross profit as a percentage of sales | 29.8 | % | 0.2 | % | 30.0 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 34 | $ | 3 | $ | 37 | ||||||
Water Technologies | 26 | 4 | 30 | |||||||||
Performance Materials | 12 | 3 | 15 | |||||||||
Consumer Markets | 73 | 2 | 75 | |||||||||
Unallocated and other | (6 | ) | (1 | ) | (7 | ) | ||||||
$ | 139 | $ | 11 | $ | 150 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 139 | $ | 11 | $ | 150 | ||||||
Depreciation and amortization | 68 | - | 68 | |||||||||
EBITDA | 207 | 11 | 218 | |||||||||
Severance | - | - | - | |||||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | - | - | |||||||||
Adjusted EBITDA | $ | 207 | $ | 11 | $ | 218 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended March 31, 2010 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,423 | $ | - | $ | 1,423 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 992 | (3 | ) | 989 | ||||||||
Selling, general and administrative expense | 293 | (7 | ) | 286 | ||||||||
Research and development expense | 20 | - | 20 | |||||||||
1,305 | (10 | ) | 1,295 | |||||||||
Equity and other income | 14 | - | 14 | |||||||||
Operating income | 132 | 10 | 142 | |||||||||
Net interest and other financing expense | (103 | ) | - | (103 | ) | |||||||
Net gain on acquisitions and divestitures | (5 | ) | - | (5 | ) | |||||||
Other income | - | - | - | |||||||||
Income from continuing operations before income taxes | 24 | 10 | 34 | |||||||||
Income tax expense | 18 | 3 | 21 | |||||||||
Income from continuing operations | 6 | 7 | 13 | |||||||||
Income from discontinued operations | 16 | 1 | 17 | |||||||||
Net income | $ | 22 | $ | 8 | $ | 30 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 0.07 | 0.08 | $ | 0.15 | |||||||
Diluted | $ | 0.07 | 0.08 | $ | 0.15 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 0.28 | 0.10 | $ | 0.38 | |||||||
Diluted | $ | 0.27 | 0.10 | $ | 0.37 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 78 | - | 78 | |||||||||
Diluted | 80 | - | 80 | |||||||||
Gross profit as a percentage of sales | 30.3 | % | 0.2 | % | 30.5 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 34 | $ | 2 | $ | 36 | ||||||
Water Technologies | 31 | 4 | 35 | |||||||||
Performance Materials | 6 | 3 | 9 | |||||||||
Consumer Markets | 69 | 2 | 71 | |||||||||
Unallocated and other | (8 | ) | (1 | ) | (9 | ) | ||||||
$ | 132 | $ | 10 | $ | 142 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
Operating income | $ | 132 | $ | 10 | $ | 142 | ||||||
Depreciation and amortization | 67 | - | 67 | |||||||||
EBITDA | 199 | 10 | 209 | |||||||||
Severance | - | - | - | |||||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | - | - | |||||||||
Adjusted EBITDA | $ | 199 | $ | 10 | $ | 209 |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||
Unaudited Statement of Consolidated Income | ||||||||||||
Three Months Ended December 31, 2009 | ||||||||||||
Effect | ||||||||||||
(In millions except share and per share data) | As Reported | of Change | As Amended | |||||||||
Sales | $ | 1,324 | $ | - | $ | 1,324 | ||||||
Costs and expenses | ||||||||||||
Cost of sales | 906 | (3 | ) | 903 | ||||||||
Selling, general and administrative expense | 284 | (7 | ) | 277 | ||||||||
Research and development expense | 20 | - | 20 | |||||||||
1,210 | (10 | ) | 1,200 | |||||||||
Equity and other income | 13 | - | 13 | |||||||||
Operating income | 127 | 10 | 137 | |||||||||
Net interest and other financing expense | (41 | ) | - | (41 | ) | |||||||
Net gain on acquisitions and divestitures | - | - | - | |||||||||
Other income | - | - | - | |||||||||
Income from continuing operations before income taxes | 86 | 10 | 96 | |||||||||
Income tax expense | 22 | 3 | 25 | |||||||||
Income from continuing operations | 64 | 7 | 71 | |||||||||
Income from discontinued operations | 22 | 2 | 24 | |||||||||
Net income | $ | 86 | $ | 9 | $ | 95 | ||||||
Earnings per share from continuing operations | ||||||||||||
Basic | $ | 0.84 | 0.09 | $ | 0.93 | |||||||
Diluted | $ | 0.82 | 0.09 | $ | 0.91 | |||||||
Earnings per share from net income | ||||||||||||
Basic | $ | 1.13 | 0.11 | $ | 1.24 | |||||||
Diluted | $ | 1.10 | 0.11 | $ | 1.21 | |||||||
Average common shares outstanding (in millions) | ||||||||||||
Basic | 77 | - | 77 | |||||||||
Diluted | 78 | - | 78 | |||||||||
Gross profit as a percentage of sales | 31.6 | % | 0.2 | % | 31.8 | % | ||||||
Operating income (loss) | ||||||||||||
Functional Ingredients | $ | 27 | $ | 3 | $ | 30 | ||||||
Water Technologies | 39 | 4 | 43 | |||||||||
Performance Materials | 8 | 1 | 9 | |||||||||
Consumer Markets | 67 | 2 | 69 | |||||||||
Unallocated and other | (14 | ) | - | (14 | ) | |||||||
$ | 127 | $ | 10 | $ | 137 | |||||||
Key Items and Adjusted EBITDA | ||||||||||||
�� Operating income | $ | 127 | $ | 10 | $ | 137 | ||||||
Depreciation and amortization | 74 | - | 74 | |||||||||
EBITDA | 201 | 10 | 211 | |||||||||
Severance | - | - | - | |||||||||
Actuarial loss on pension and other postretirement plan remeasurement | - | - | - | |||||||||
Adjusted EBITDA | $ | 201 | $ | 10 | $ | 211 |