EXHIBIT 99.1
FOR FURTHER INFORMATION:
Media Relations: Investor Relations:
Jim Vitak Daragh Porter
(614) 790-3715 (859) 815-3825
jevitak@ashland.com dlporter@ashland.com
FOR IMMEDIATE RELEASE
SEPTEMBER 20, 2005
ASHLAND INC. EXPECTS MIXED RESULTS FOR FISCAL FOURTH-QUARTER
COVINGTON, Ky. -- Ashland Inc. (NYSE:ASH) announced today 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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Ashland Inc. expects mixed results for fiscal fourth-quarter, pg. 2
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 Inc. (NYSE: ASH) is a Fortune 500 chemical and
transportation construction company providing products, services and
customer solutions throughout the world. To learn more about Ashland, visit
www.ashland.com.
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FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, with respect to Ashland's operating
performance. These estimates are based upon a number of assumptions,
including those mentioned within this news release. Such estimates are also
based upon internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, weather, operating
efficiencies and economic conditions, such as prices, supply and demand,
cost of raw materials, and legal proceedings and claims (including
environmental and asbestos matters). Although Ashland believes its
expectations are based on reasonable assumptions, it cannot assure the
expectations reflected herein will be achieved. This forward-looking
information may prove to be inaccurate and actual results may differ
significantly from those anticipated if one or more of the underlying
assumptions or expectations proves to be inaccurate or is unrealized or if
other unexpected conditions or events occur. Other factors and risks
affecting Ashland are contained in Ashland's Form 10-K, as amended, for the
fiscal year ended Sept. 30, 2004. Ashland undertakes no obligation to
subsequently update or revise the forward-looking statements made in this
news release to reflect events or circumstances after the date of this
release.