Certain Monthly Summary Financial Information
On March 25, 2013, Ashland Inc. (“Ashland”) will include the information contained in exhibits 99.1-99.14, and graphic images thereof, on the “Investor Center” section of its website located at http://investor.ashland.com, or in employee communications. Ashland is furnishing the information pursuant to the Securities and Exchange Commission’s (“SEC”) Regulation FD. The information contained in exhibits 99.1-99.14 is summary information concerning key metrics for Ashland’s operating segments. The information is intended to be considered in the context of Ashland’s SEC filings and other public announcements that Ashland may make from time to time.
Additional Information Regarding Ashland and Certain Commercial Units
Ashland Water Technologies (“AWT”)
AWT is redesigning its business to improve the focus on its two key segments, Paper Chemicals and Water Treatment, by forming separate global sales organizations for each segment. The new organizations will help drive improved service to AWT's Paper Chemical and Water Treatment customers. Leaders have been designated for these global businesses and for the respective leadership positions in each region. The redesign project will also modify some of the key business processes in each division leading to improved efficiency, reduced complexity and increased agility, all of which are focused on improving AWT's responsiveness to changes in the marketplace.
As part of this redesign, Ashland expects to eliminate approximately $20 million of annualized SG&A costs globally and to achieve full run-rate savings by July 1, 2013. As a result of these changes, Ashland expects to incur a restructuring charge in the March quarter of approximately $11-$13 million. Management plans to share more details of the AWT redesign on Ashland’s April earnings call.
Ashland Current Quarter Update
During the month of February, Ashland experienced weaker than expected results in two commercial units, Ashland Specialty Ingredients (“ASI”) and Ashland Performance Materials (“APM”). As a result, Ashland expects that its second quarter profitability will be lower than previously anticipated.
Ashland Specialty Ingredients (“ASI”)
ASI’s sales for the month of February totaled $203 million. Weakness was concentrated in the Intermediates and Solvents, Energy, Coatings and Construction businesses. Ashland now expects that ASI’s sales for the second quarter will be approximately 10% below the prior year’s second quarter and EBITDA margin as a percentage of sales for the quarter will be roughly 120 basis points below its first quarter results, excluding the effects of guar.
Ashland Performance Materials (“APM”)
Lower Elastomers volumes and margins have negatively affected APM’s performance. As a result, Ashland expects APM's gross profit as a percentage of sales to be about 100 basis points below its first quarter result. APM's sales are expected to be roughly 10% higher than the fiscal first quarter result.
By filing this report on Form 8-K, Ashland makes no admission as to the materiality of any information in this report. Ashland reserves the right to discontinue the availability of the data in the attached exhibits.
Item 9.01. Financial Statements and Exhibits
