EX-99.2 3 ex99-2.htm ASHLAND INC. QUARTERLY STATEMENTS OF CONSOLIDATED INCOME AND SEGMENT RESULTS - REPORTED AND AS AMENDED ex99-2.htm
Exhibit 99.2
 

 
Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Nine Months Ended June 30, 2011
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 4,656     $ -     $ 4,656  
Costs and expenses
                        
Cost of sales
     3,411       (49 )     3,362  
Selling, general and administrative expense
     882       (110 )     772  
Research and development expense
     64       -       64  
      4,357       (159 )     4,198  
Equity and other income
     42       -       42  
Operating income
     341       159       500  
Net interest and other financing expense
     (88 )     -       (88 )
Net gain on acquisitions and divestitures
     20       -       20  
Income from continuing operations before income taxes
     273       159       432  
Income tax expense
     46       58       104  
Income from continuing operations
     227       101       328  
Income from discontinued operations
     300       49       349  
Net income
   $ 527     $ 150     $ 677  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 2.89       1.29     $ 4.18  
  Diluted
   $ 2.83       1.27     $ 4.10  
                         
Earnings per share from net income
                        
  Basic
   $ 6.70       1.91     $ 8.61  
  Diluted
   $ 6.57       1.87     $ 8.44  
                         
Average common shares outstanding (in millions)
                        
  Basic
     78       -       78  
  Diluted
     80       -       80  
                         
Gross profit as a percent of sales
     26.7 %     1.1 %     27.8 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 109     $ 6     $ 115  
Water Technologies
     73       10       83  
Performance Materials
     21       4       25  
Consumer Markets
     178       6       184  
Unallocated and other
     (40 )     133       93  
    $ 341     $ 159     $ 500  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 341     $ 159     $ 500  
  Depreciation and amortization
     211       -       211  
  EBITDA
     552       159       711  
  Environmental reserve adjustment
     6               6  
  Castings Solutions transaction and start-up costs
     3       -       3  
  Actuarial gain on pension and other postretirement plan remeasurement
     -       (120 )     (120 )
  Adjusted EBITDA
   $ 561     $ 39     $ 600  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended June 30, 2011
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,667     $ -     $ 1,667  
Costs and expenses
                        
Cost of sales
     1,236       (3 )     1,233  
Selling, general and administrative expense
     304       (6 )     298  
Research and development expense
     22       -       22  
      1,562       (9 )     1,553  
Equity and other income
     15       -       15  
Operating income
     120       9       129  
Net interest and other financing expense
     (22 )     -       (22 )
Net loss on acquisitions and divestitures
     (1 )     -       (1 )
Income from continuing operations before income taxes
     97       9       106  
Income tax expense
     28       3       31  
Income from continuing operations
     69       6       75  
Income from discontinued operations
     18       -       18  
Net income
   $ 87     $ 6     $ 93  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 0.88       0.08     $ 0.96  
  Diluted
   $ 0.86       0.08     $ 0.94  
                         
Earnings per share from net income
                        
  Basic
   $ 1.12       0.08     $ 1.20  
  Diluted
   $ 1.09       0.08     $ 1.17  
                         
Average common shares outstanding (in millions)
                        
  Basic
     78       -       78  
  Diluted
     80       -       80  
                         
Gross profit as a percent of sales
     25.9 %     0.1 %     26.0 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 50     $ 1     $ 51  
Water Technologies
     22       2       24  
Performance Materials
     12       -       12  
Consumer Markets
     51       1       52  
Unallocated and other
     (15 )     5       (10 )
    $ 120     $ 9     $ 129  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 120     $ 9     $ 129  
  Depreciation and amortization
     68       -       68  
  EBITDA
     188       9       197  
  Environmental reserve adjustment
     6       -       6  
  Actuarial gain on pension and other postretirement plan remeasurement
     -       -       -  
  Adjusted EBITDA
   $ 194     $ 9     $ 203  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended March 31, 2011
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,557     $ -     $ 1,557  
Costs and expenses
                        
Cost of sales
     1,135       (41 )     1,094  
Selling, general and administrative expense
     292       (93 )     199  
Research and development expense
     22       -       22  
      1,449       (134 )     1,315  
Equity and other income
     14       -       14  
Operating income
     122       134       256  
Net interest and other financing expense
     (39 )     -       (39 )
Net gain on acquisitions and divestitures
     -       -       -  
Income from continuing operations before income taxes
     83       134       217  
Income tax (benefit) expense
     (13 )     48       35  
Income from continuing operations
     96       86       182  
Income from discontinued operations
     257       46       303  
Net income
   $ 353     $ 132     $ 485  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 1.22       1.08     $ 2.30  
  Diluted
   $ 1.20       1.06     $ 2.26  
                         
Earnings per share from net income
                        
  Basic
   $ 4.47       1.66     $ 6.13  
  Diluted
   $ 4.39       1.63     $ 6.02  
                         
Average common shares outstanding (in millions)
                        
  Basic
     79       -       79  
  Diluted
     80       -       80  
                         
Gross profit as a percent of sales
     27.1 %     2.6 %     29.7 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 41     $ 2     $ 43  
Water Technologies
     27       4       31  
Performance Materials
     3       2       5  
Consumer Markets
     62       2       64  
Unallocated and other
     (11 )     124       113  
    $ 122     $ 134     $ 256  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 122     $ 134     $ 256  
  Depreciation and amortization
     70       -       70  
  EBITDA
     192       134       326  
  Castings Solutions transaction and start-up costs
     -       -       -  
  Actuarial gain on pension and other postretirement plan remeasurement
     -       (120 )     (120 )
  Adjusted EBITDA
   $ 192     $ 14     $ 206  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended December 31, 2010
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,433     $ -     $ 1,433  
Costs and expenses
                        
Cost of sales
     1,040       (5 )     1,035  
Selling, general and administrative expense
     286       (10 )     276  
Research and development expense
     20       -       20  
      1,346       (15 )     1,331  
Equity and other income
     12       -       12  
Operating income
     99       15       114  
Net interest and other financing expense
     (27 )     -       (27 )
Net gain on acquisitions and divestitures
     21       -       21  
Income from continuing operations before income taxes
     93       15       108  
Income tax expense
     31       6       37  
Income from continuing operations
     62       9       71  
Income from discontinued operations
     25       3       28  
Net income
   $ 87     $ 12     $ 99  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 0.79       0.13     $ 0.92  
  Diluted
   $ 0.78       0.13     $ 0.91  
                         
Earnings per share from net income
                        
  Basic
   $ 1.11       0.16     $ 1.27  
  Diluted
   $ 1.09       0.16     $ 1.25  
                         
Average common shares outstanding (in millions)
                        
  Basic
     79       -       79  
  Diluted
     80       -       80  
                         
Gross profit as a percent of sales
     27.4 %     0.4 %     27.8 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 19     $ 3     $ 22  
Water Technologies
     24       4       28  
Performance Materials
     6       2       8  
Consumer Markets
     65       2       67  
Unallocated and other
     (15 )     4       (11 )
    $ 99     $ 15     $ 114  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 99     $ 15     $ 114  
  Depreciation and amortization
     73       -       73  
  EBITDA
     172       15       187  
  Castings Solutions transaction and start-up costs
     3       -       3  
  Actuarial gain on pension and other postretirement plan remeasurement
     -       -       -  
  Adjusted EBITDA
   $ 175     $ 15     $ 190  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended September 30, 2010
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,516     $ -     $ 1,516  
Costs and expenses
                        
Cost of sales
     1,123       75       1,198  
Selling, general and administrative expense
     299       184       483  
Research and development expense
     23       -       23  
      1,445       259       1,704  
Equity and other income
     8       -       8  
Operating income
     79       (259 )     (180 )
Net interest and other financing expense
     (27 )     -       (27 )
Net gain on acquisitions and divestitures
     4       -       4  
Other income
     1       -       1  
Income from continuing operations before income taxes
     57       (259 )     (202 )
Income tax expense (benefit)
     3       (84 )     (81 )
Income (loss) from continuing operations
     54       (175 )     (121 )
Income (loss) from discontinued operations
     22       (42 )     (20 )
Net income (loss)
   $ 76     $ (217 )   $ (141 )
                         
Earnings per share from continuing operations
                        
  Basic
   $ 0.69       (2.22 )   $ (1.53 )
  Diluted
   $ 0.68       (2.21 )   $ (1.53 )
                         
Earnings per share from net income (loss)
                        
  Basic
   $ 0.97       (2.76 )   $ (1.79 )
  Diluted
   $ 0.96       (2.75 )   $ (1.79 )
                         
Average common shares outstanding (in millions)
                        
  Basic
     79       -       79  
  Diluted
     80       (1 )     79  
                         
Gross profit as a percentage of sales
     25.9 %     -4.9 %     21.0 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 19     $ 2     $ 21  
Water Technologies
     19       4       23  
Performance Materials
     (2 )     2       -  
Consumer Markets
     52       2       54  
Unallocated and other
     (9 )     (269 )     (278 )
    $ 79     $ (259 )   $ (180 )
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 79     $ (259 )   $ (180 )
  Depreciation and amortization
     71       -       71  
  EBITDA
     150       (259 )     (109 )
  Severance
     11       -       11  
  Actuarial loss on pension and other postretirement plan remeasurement
     -       268       268  
  Adjusted EBITDA
   $ 161     $ 9     $ 170  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended June 30, 2010
        
 
        
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,478     $ -     $ 1,478  
Costs and expenses
                        
Cost of sales
     1,037       (3 )     1,034  
Selling, general and administrative expense
     291       (8 )     283  
Research and development expense
     23       -       23  
      1,351       (11 )     1,340  
Equity and other income
     12       -       12  
Operating income
     139       11       150  
Net interest and other financing expense
     (26 )     -       (26 )
Net gain on acquisitions and divestitures
     23       -       23  
Other income
     -       -       -  
Income from continuing operations before income taxes
     136       11       147  
Income tax expense
     19       3       22  
Income from continuing operations
     117       8       125  
Income from discontinued operations
     31       1       32  
Net income
   $ 148     $ 9     $ 157  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 1.49       0.09     $ 1.58  
  Diluted
   $ 1.46       0.09     $ 1.55  
                         
Earnings per share from net income
                        
  Basic
   $ 1.89       0.12     $ 2.01  
  Diluted
   $ 1.85       0.11     $ 1.96  
                         
Average common shares outstanding (in millions)
                        
  Basic
     78       -       78  
  Diluted
     80       -       80  
                         
Gross profit as a percentage of sales
     29.8 %     0.2 %     30.0 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 34     $ 3     $ 37  
Water Technologies
     26       4       30  
Performance Materials
     12       3       15  
Consumer Markets
     73       2       75  
Unallocated and other
     (6 )     (1 )     (7 )
    $ 139     $ 11     $ 150  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 139     $ 11     $ 150  
  Depreciation and amortization
     68       -       68  
  EBITDA
     207       11       218  
  Severance
     -       -       -  
  Actuarial loss on pension and other postretirement plan remeasurement
     -       -       -  
  Adjusted EBITDA
   $ 207     $ 11     $ 218  


 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended March 31, 2010
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,423     $ -     $ 1,423  
Costs and expenses
                        
Cost of sales
     992       (3 )     989  
Selling, general and administrative expense
     293       (7 )     286  
Research and development expense
     20       -       20  
      1,305       (10 )     1,295  
Equity and other income
     14       -       14  
Operating income
     132       10       142  
Net interest and other financing expense
     (103 )     -       (103 )
Net gain on acquisitions and divestitures
     (5 )     -       (5 )
Other income
     -       -       -  
Income from continuing operations before income taxes
     24       10       34  
Income tax expense
     18       3       21  
Income from continuing operations
     6       7       13  
Income from discontinued operations
     16       1       17  
Net income
   $ 22     $ 8     $ 30  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 0.07       0.08     $ 0.15  
  Diluted
   $ 0.07       0.08     $ 0.15  
                         
Earnings per share from net income
                        
  Basic
   $ 0.28       0.10     $ 0.38  
  Diluted
   $ 0.27       0.10     $ 0.37  
                         
Average common shares outstanding (in millions)
                        
  Basic
     78       -       78  
  Diluted
     80       -       80  
                         
Gross profit as a percentage of sales
     30.3 %     0.2 %     30.5 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 34     $ 2     $ 36  
Water Technologies
     31       4       35  
Performance Materials
     6       3       9  
Consumer Markets
     69       2       71  
Unallocated and other
     (8 )     (1 )     (9 )
    $ 132     $ 10     $ 142  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 132     $ 10     $ 142  
  Depreciation and amortization
     67       -       67  
  EBITDA
     199       10       209  
  Severance
     -       -       -  
  Actuarial loss on pension and other postretirement plan remeasurement
     -       -       -  
  Adjusted EBITDA
   $ 199     $ 10     $ 209  
 

 
 
 
 

Ashland Inc. and Consolidated Subsidiaries
                  
Unaudited Statement of Consolidated Income
                  
Three Months Ended December 31, 2009
                  
         
Effect
        
(In millions except share and per share data)
  
As Reported
    
of Change
    
As Amended
  
                   
Sales
   $ 1,324     $ -     $ 1,324  
Costs and expenses
                        
Cost of sales
     906       (3 )     903  
Selling, general and administrative expense
     284       (7 )     277  
Research and development expense
     20       -       20  
      1,210       (10 )     1,200  
Equity and other income
     13       -       13  
Operating income
     127       10       137  
Net interest and other financing expense
     (41 )     -       (41 )
Net gain on acquisitions and divestitures
     -       -       -  
Other income
     -       -       -  
Income from continuing operations before income taxes
     86       10       96  
Income tax expense
     22       3       25  
Income from continuing operations
     64       7       71  
Income from discontinued operations
     22       2       24  
Net income
   $ 86     $ 9     $ 95  
                         
Earnings per share from continuing operations
                        
  Basic
   $ 0.84       0.09     $ 0.93  
  Diluted
   $ 0.82       0.09     $ 0.91  
                         
Earnings per share from net income
                        
  Basic
   $ 1.13       0.11     $ 1.24  
  Diluted
   $ 1.10       0.11     $ 1.21  
                         
Average common shares outstanding (in millions)
                        
  Basic
     77       -       77  
  Diluted
     78       -       78  
                         
Gross profit as a percentage of sales
     31.6 %     0.2 %     31.8 %
                         
Operating income (loss)
                        
Functional Ingredients
   $ 27     $ 3     $ 30  
Water Technologies
     39       4       43  
Performance Materials
     8       1       9  
Consumer Markets
     67       2       69  
Unallocated and other
     (14 )     -       (14 )
    $ 127     $ 10     $ 137  
                         
Key Items and Adjusted EBITDA
                        
  Operating income
   $ 127     $ 10     $ 137  
  Depreciation and amortization
     74       -       74  
  EBITDA
     201       10       211  
  Severance
     -       -       -  
  Actuarial loss on pension and other postretirement plan remeasurement
     -       -       -  
  Adjusted EBITDA
   $ 201     $ 10     $ 211