UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): September 20, 2005
ASHLAND INC.
(Exact name of registrant as specified in its charter)
Kentucky
(State or other jurisdiction of incorporation)
1-32532 20-0865835
(Commission File Number) (I.R.S. Employer
Identification No.)
50 E. RiverCenter Boulevard, Covington, Kentucky 41012-0391
(Address of principal executive offices) (Zip Code)
P.O. Box 391, Covington, Kentucky 41012-0391
(Mailing Address) (Zip Code)
Registrant's telephone number, including area code (859) 815-3333
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 2230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
On September 20, 2005, Ashland Inc. ("Ashland") announced that
earnings for its fiscal fourth quarter, ending September 30, 2005, may be
less than earnings for the September 2004 quarter. Ashland's expectations
for its Ashland Specialty Chemical and Ashland Distribution divisions
remain on track. As raw materials and energy costs have risen, Ashland
Specialty Chemical and Ashland Distribution have announced price increases.
Ashland Distribution is expected to produce sharply higher earnings in the
September quarter versus the comparable year-ago quarter, and Ashland
Specialty Chemical should continue to report rising profits versus the
September 2004 quarter as the result of higher sales revenues. Valvoline
expects to report a roughly 40-percent decline in profits as the result of
lower sales of branded lubricants, due in part to timing effects from
pricing and promotion changes, as well as higher raw materials costs.
Escalating hydrocarbon prices have impacted the North American market for
motor oil throughout the year, and the market further weakened during the
quarter.
Operating income for the Transportation Construction Sector,
commercially known as Ashland Paving And Construction, Inc., or APAC, is
expected to be roughly half of the prior-year quarter's $70 million. In
addition to lower production due to business disruptions caused by the
active hurricane season, APAC also expects to increase reserves for
unprofitable contracts resulting from the run-up in hydrocarbon prices.
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In addition to the above items, Ashland expects to record a charge
in the September quarter related to its participation in Oil Insurance
Limited, an energy industry mutual insurance consortium, due primarily to
damage caused by Hurricane Katrina. The amount is undetermined at this
time; however, the company expects the maximum loss to be $14 million
pre-tax assuming no further catastrophic losses.
Ashland plans to release its earnings at 8 a.m., EDT, on October
24 and will follow with an analyst meeting in New York City at 5 p.m., EDT,
which will also be web cast.
Ashland's earnings expectations and related matters are discussed
in more detail in the press release attached hereto as Exhibit 99.1, which
is incorporated by reference into this Item 8.01.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 - Press release dated September 20, 2005.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
ASHLAND INC.
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(Registrant)
Date: September 20, 2005 /s/ J. Marvin Quin
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Name: J. Marvin Quin
Title: Senior Vice President
and Chief Financial Officer
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Exhibit Index
99.1 - Press release dated September 20, 2005.
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