EXHIBIT 99.1
News Release [GRAPHIC OMITTED]
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
January 6, 2006
ASHLAND INC. EXPECTS STRONG RESULTS FOR FISCAL FIRST QUARTER
COVINGTON, Ky. -- Ashland Inc. (NYSE:ASH) announced today that earnings for
its fiscal first quarter, ended Dec. 31, 2005, are expected to be higher
than analyst estimates, which currently range from $0.41 to $0.71 per
share. Strong performances by the Ashland Paving And Construction, Inc.
(APAC), Ashland Distribution and Ashland Specialty Chemical businesses are
expected to drive the quarter's results.
In Ashland's Transportation Construction Sector, APAC is expected
to report much stronger earnings as a result of improved profit margins, in
spite of losses on hedges of diesel fuel purchases. In addition, APAC is
expected to record a gain of $10 million on the transfer of a shop/office
facility that was subject to eminent domain.
In the Chemical Sector, Ashland Distribution and Ashland Specialty
Chemical continue to report excellent profit growth, which will more than
offset a very weak performance from Valvoline.
Beginning with the December quarter, Ashland will allocate
substantially all corporate expenses to Ashland's four operating divisions,
with the exception of certain legacy costs or items clearly not associated
with the operating divisions. Results for previously reported periods will
be reclassified to conform with the new allocation methodology.
Ashland will report preliminary results for its fiscal first
quarter at 8 a.m., EST, on Jan. 25 and will follow with a conference call
and webcast at 10 a.m., EST.
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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Ashland Inc. o Covington, Ky. o 41012-0391 o (859)-3333 o www.ashland.com
Ashland Inc. expects strong results for fiscal first quarter, pg. 2
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 for the fiscal year
ended Sept. 30, 2005. 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.