EX-99.1 2 ex99-1.htm ASHLAND INC. ANNUAL STATEMENTS OF CONSOLIDATED INCOME AND SEGMENT RESULTS - REPORTED AND AS AMENDED ex99-1.htm
Exhibit 99.1

 
Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Year Ended September 30, 2010
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 5,741     $ -     $ 5,741  
Costs and expenses
                        
Cost of sales
     4,058       66       4,124  
Selling, general and administrative expense
     1,168       162       1,330  
Research and development expense
     86       -       86  
      5,312       228       5,540  
Equity and other income
     48       -       48  
Operating income
     477       (228 )     249  
Net interest and other financing expense
     (197 )     -       (197 )
Net gain on acquisitions and divestitures
     21       -       21  
Other income
     2       -       2  
Income from continuing operations before income taxes
     303       (228 )     75  
Income tax expense (benefit)
     62       (75 )     (13 )
Income from continuing operations
     241       (153 )     88  
Income from discontinued operations
     91       (38 )     53  
Net income
   $ 332     $ (191 )   $ 141  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 3.10       (1.96 )   $ 1.14  
  Diluted
   $ 3.04       (1.93 )   $ 1.11  
                         
Earnings per share from net income
                        
  Basic
   $ 4.26       (2.45 )   $ 1.81  
  Diluted
   $ 4.18       (2.40 )   $ 1.78  
                         
Average common shares outstanding (in millions)
                        
  Basic
     78       -       78  
  Diluted
     79       -       79  
                         
Gross profit as a percentage of sales
     29.3 %     -1.1 %     28.2 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 115     $ 10     $ 125  
Water Technologies
     114       16       130  
Performance Materials
     23       9       32  
Consumer Markets
     262       8       270  
Unallocated and other
     (37 )     (271 )     (308 )
    $ 477     $ (228 )   $ 249  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 477     $ (228 )   $ 249  
  Depreciation and amortization
     280       -       280  
  EBITDA
     757       (228 )     529  
  Severance
     11       -       11  
  Actuarial loss on pension and other postretirement plan remeasurement
     -       268       268  
  Adjusted EBITDA
   $ 768     $ 40     $ 808  



 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Year Ended September 30, 2009
        
 
        
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 5,220     $ -     $ 5,220  
Costs and expenses
                        
Cost of sales
     3,732       118       3,850  
Selling, general and administrative expense
     1,115       284       1,399  
Research and development expense
     96       -       96  
      4,943       402       5,345  
Equity and other income
     34       -       34  
Operating income
     311       (402 )     (91 )
Net interest and other financing expense
     (205 )     -       (205 )
Net gain on acquisitions and divestitures
     59       -       59  
Other expense
     (86 )     -       (86 )
Income from continuing operations before income taxes
     79       (402 )     (323 )
Income tax expense (benefit)
     52       (135 )     (83 )
Income (loss) from continuing operations
     27       (267 )     (240 )
Income (loss) from discontinued operations
     44       (65 )     (21 )
Net income (loss)
   $ 71     $ (332 )   $ (261 )
                         
Earnings per share from continuing operations
                        
  Basic
   $ 0.38       (3.69 )   $ (3.31 )
  Diluted
   $ 0.37       (3.68 )   $ (3.31 )
                         
Earnings per share from net income (loss)
                        
  Basic
   $ 0.98       (4.58 )   $ (3.60 )
  Diluted
   $ 0.96       (4.56 )   $ (3.60 )
                         
Average common shares outstanding (in millions)
                        
  Basic
     72       -       72  
  Diluted
     73       (1 )     72  
                         
Gross profit as a percentage of sales
     28.5 %     -2.3 %     26.2 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 36     $ 8     $ 44  
Water Technologies
     78       17       95  
Performance Materials
     1       9       10  
Consumer Markets
     252       7       259  
Unallocated and other
     (56 )     (443 )     (499 )
    $ 311     $ (402 )   $ (91 )
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 311     $ (402 )   $ (91 )
  Depreciation and amortization
     315       -       315  
  EBITDA
     626       (402 )     224  
  Severance
     50       -       50  
  Inventory fair value adjustment
     37       -       37  
  Results of the Hercules business prior to acquisition
     35       -       35  
  Plant closing costs
     4       -       4  
  Currency gain on intracompany loan
     (5 )     -       (5 )
  Actuarial loss on pension and other postretirement plan remeasurement
     -       409       409  
  Adjusted EBITDA
   $ 747     $ 7     $ 754  
 

 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Year Ended September 30, 2008
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 4,176     $ -     $ 4,176  
Costs and expenses
                        
Cost of sales
     3,191       18       3,209  
Selling, general and administrative expense
     860       40       900  
Research and development expense
     48       -       48  
      4,099       58       4,157  
Equity and other income
     50       -       50  
Operating income
     127       (58 )     69  
Net interest and other financing income
     28       -       28  
Net gain on acquisitions and divestitures
     20       -       20  
Income from continuing operations before income taxes
     175       (58 )     117  
Income tax expense
     53       (23 )     30  
Income from continuing operations
     122       (35 )     87  
Income from discontinued operations
     45       (16 )     29  
Net income
   $ 167     $ (51 )   $ 116  
                         
                         
Earnings per share from continuing operations
                        
  Basic
   $ 1.95       (0.56 )   $ 1.39  
  Diluted
   $ 1.93       (0.56 )   $ 1.37  
                         
Earnings per share from net income
                        
  Basic
   $ 2.65       (0.82 )   $ 1.83  
  Diluted
   $ 2.63       (0.81 )   $ 1.82  
                         
Average common shares outstanding (in millions)
                        
  Basic
     63       -       63  
  Diluted
     64       -       64  
                         
Gross profit as a percentage of sales
     23.6 %     -0.4 %     23.2 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ -     $ -     $ -  
Water Technologies
     10       (2 )     8  
Performance Materials
     52       (3 )     49  
Consumer Markets
     83       (1 )     82  
Unallocated and other
     (18 )     (52 )     (70 )
    $ 127     $ (58 )   $ 69  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 127     $ (58 )   $ 69  
  Depreciation and amortization
     121       -       121  
  EBITDA
     248       (58 )     190  
  Severance
     9       -       9  
  Results of the Hercules business prior to acquisition
     381       -       381  
  Ashland-Cargill JV write-off and other due diligence costs
     8       -       8  
  Actuarial loss on pension and other postretirement plan remeasurement
     -       60       60  
  Adjusted EBITDA
   $ 646     $ 2     $
648
  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Year Ended September 30, 2007
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 3,923     $ -     $ 3,923  
Costs and expenses
                        
Cost of sales
     2,903       (44 )     2,859  
Selling, general and administrative expense
     874       (113 )     761  
Research and development expense
     45       -       45  
      3,822       (157 )     3,665  
Equity and other income
     46       -       46  
Operating income
     147       157       304  
Net interest and other financing income
     46       -       46  
Net gain on acquisitions and divestitures
     (3 )     -       (3 )
Income from continuing operations before income taxes
     190       157       347  
Income tax expense
     32       58       90  
Income from continuing operations
     158       99       257  
Income from discontinued operations
     72       46       118  
Net income
   $ 230     $ 145     $ 375  
                         
                         
Earnings per share from continuing operations
                        
  Basic
   $ 2.51       1.58     $ 4.09  
  Diluted
   $ 2.47       1.56     $ 4.03  
                         
Earnings per share from net income
                        
  Basic
   $ 3.66       2.31     $ 5.97  
  Diluted
   $ 3.60       2.27     $ 5.87  
                         
Average common shares outstanding (in millions)
                        
  Basic
     63       -       63  
  Diluted
     64       -       64  
                         
Gross profit as a percentage of sales
     26.0 %     1.1 %     27.1 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ -     $ -     $ -  
Water Technologies
     16       5       21  
Performance Materials
     89       8       97  
Consumer Markets
     86       5       91  
Unallocated and other
     (44 )     139       95  
    $ 147     $ 157     $ 304  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 147     $ 157     $ 304  
  Depreciation and amortization
     111       -       111  
  EBITDA
     258       157       415  
  APAC restructuring charge
     25       -       25  
  Non-North American reporting lag elimination
     (6 )     -       (6 )
  Results of the Hercules business prior to acquisition
     392       -       392  
  Actuarial gain on pension and other postretirement plan remeasurement
     -       (141 )     (141 )
  Adjusted EBITDA
   $ 669     $ 16     $ 685