1-32532 | 20-0865835 | |||
(Commission File Number) | (I.R.S. Employer Identification No.) | |||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | 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 2.02. |
Results of Operations and Financial Condition
|
Item 9.01. |
Financial Statements and Exhibits
|
|
(d)
|
Exhibits | |
99.1 | News Release dated November 8, 2011. |
ASHLAND INC.
|
|
(Registrant)
|
|
November 8, 2011 |
/s/ Lamar M. Chambers
|
Lamar M. Chambers
|
|
Senior Vice President and
Chief Financial Officer
|
99.1 |
News Release dated November 8, 2011.
|
FOR ADDITIONAL INFORMATION: | |||
Media Relations: |
Investor Relations:
|
||
Jim Vitak |
David Neuberger
|
||
(614) 790-3715 |
(859) 815-4454
|
||
jevitak@ashland.com |
daneuberger@ashland.com
|
||
FOR IMMEDIATE RELEASE
|
|||
Nov. 8, 2011
|
(in millions except per-share amounts)
|
Quarter Ended Sept. 30,
|
|||||||
2011
|
2010
|
|||||||
Operating income (loss)
|
$ | (370 | ) | $ | (180 | ) | ||
Key items*
|
507 | 285 | ||||||
Adjusted operating income*
|
$ | 137 | $ | 105 | ||||
Adjusted EBITDA*
|
$ | 221 | $ | 170 | ||||
Diluted earnings per share (EPS)
|
||||||||
From net income
|
$ | (3.38 | ) | $ | (1.79 | ) | ||
From continuing operations
|
$ | (3.50 | ) | $ | (1.53 | ) | ||
Key items*
|
4.51 | 2.37 | ||||||
Adjusted EPS from continuing operations*
|
$ | 1.01 | $ | 0.84 | ||||
Cash flows provided by operating activities
from continuing operations
|
$ | 154 | $ | 208 | ||||
Free cash flow*
|
35 | 102 | ||||||
* See Tables 5, 6 and 7 for definitions and U.S. GAAP reconciliations.
|
·
|
sales grew 8 percent to $1,641 million;
|
·
|
adjusted operating income rose 10 percent to $116 million; and
|
·
|
adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 6 percent to $181 million.
|
·
|
a $275 million ($3.51 negative EPS impact) noncash aftertax charge related to an actuarial loss on pension and other postemployment benefits, as a result of unfavorable asset returns and a reduction in the discount rate, such gains and losses now being recognized in the year they occur, consistent with the change in pension accounting method described in Ashland’s Form 8-K dated Sept. 9, 2011;
|
·
|
a $25 million (32 cents negative EPS impact) aftertax charge for severance expense primarily related to corporate cost-reduction programs and restructuring within Ashland Water Technologies;
|
·
|
an $11 million (14 cents negative EPS impact) aftertax charge for adjustments to environmental reserves and asset impairments associated with legacy sites unrelated to ongoing operations;
|
·
|
a $10 million (13 cents negative EPS impact) aftertax charge for stepped-up inventory values related to the acquisition of ISP;
|
·
|
a $21 million (27 cents negative EPS impact) aftertax charge related to acquisitions and divestitures, due to transaction costs incurred with the purchase of ISP and a tax adjustment related to the former Marathon Ashland Petroleum joint venture; and
|
·
|
a net $11 million (14 cents negative EPS impact) charge, related to various discrete tax adjustments.
|
Table 1
|
|||||||||||||||||
STATEMENTS OF CONSOLIDATED INCOME
|
|||||||||||||||||
(In millions except per share data - preliminary and unaudited)
|
|||||||||||||||||
Three months ended
|
Year ended
|
||||||||||||||||
September 30
|
September 30
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
SALES
|
$ | 1,846 | $ | 1,516 | $ | 6,502 | $ | 5,741 | |||||||||
COSTS AND EXPENSES
|
|||||||||||||||||
Cost of sales
|
1,528 | 1,198 | 4,890 | 4,124 | |||||||||||||
Selling, general and administrative expense
|
670 | 483 | 1,442 | 1,330 | |||||||||||||
Research and development expense
|
25 | 23 | 89 | 86 | |||||||||||||
2,223 | 1,704 | 6,421 | 5,540 | ||||||||||||||
EQUITY AND OTHER INCOME
|
7 | 8 | 49 | 48 | |||||||||||||
OPERATING INCOME (LOSS)
|
(370 | ) | (180 | ) | 130 | 249 | |||||||||||
Net interest and other financing expense (a)
|
(33 | ) | (27 | ) | (121 | ) | (197 | ) | |||||||||
Net (loss) gain on acquisitions and divestitures
|
(26 | ) | 4 | (5 | ) | 21 | |||||||||||
Other income (expense)
|
(1 | ) | 1 | (1 | ) | 2 | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|||||||||||||||||
BEFORE INCOME TAXES
|
(430 | ) | (202 | ) | 3 | 75 | |||||||||||
Income tax benefit
|
157 | 81 | 53 | 13 | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
(273 | ) | (121 | ) | 56 | 88 | |||||||||||
Income (loss) from discontinued operations (net of income taxes) (b)
|
10 | (20 | ) | 358 | 53 | ||||||||||||
NET INCOME (LOSS)
|
$ | (263 | ) | $ | (141 | ) | $ | 414 | $ | 141 | |||||||
DILUTED EARNINGS PER SHARE
|
|||||||||||||||||
Income (loss) from continuing operations
|
$ | (3.50 | ) | $ | (1.53 | ) | $ | .70 | $ | 1.11 | |||||||
Income (loss) from discontinued operations
|
.12 | (.26 | ) | 4.47 | .67 | ||||||||||||
Net income (loss)
|
$ | (3.38 | ) | $ | (1.79 | ) | $ | 5.17 | $ | 1.78 | |||||||
AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS
|
78 | 79 | 80 | 79 | |||||||||||||
SALES
|
|||||||||||||||||
Specialty Ingredients
|
$ | 467 | $ | 239 | $ | 1,256 | $ | 915 | |||||||||
Water Technologies
|
491 | 462 | 1,902 | 1,785 | |||||||||||||
Performance Materials
|
371 | 353 | 1,373 | 1,286 | |||||||||||||
Consumer Markets
|
517 | 462 | 1,971 | 1,755 | |||||||||||||
$ | 1,846 | $ | 1,516 | $ | 6,502 | $ | 5,741 | ||||||||||
OPERATING INCOME (LOSS)
|
|||||||||||||||||
Specialty Ingredients
|
$ | 56 | $ | 21 | $ | 171 | $ | 125 | |||||||||
Water Technologies
|
10 | 23 | 93 | 130 | |||||||||||||
Performance Materials
|
12 | - | 37 | 32 | |||||||||||||
Consumer Markets
|
29 | 54 | 213 | 270 | |||||||||||||
Unallocated and other
|
(477 | ) | (278 | ) | (384 | ) | (308 | ) | |||||||||
$ | (370 | ) | $ | (180 | ) | $ | 130 | $ | 249 | ||||||||
(a)
|
The years ended September 30, 2011 and 2010 include a $12 million and $66 million charge, respectively, related to the refinancing and significant extinguishment of debt completed during these periods.
|
||||||||||||||||
(b)
|
Includes expense of $6 million and income of $62 million for the three months and year ended September 30, 2011, respectively, and expense of $25 million and income of $22 million for the three months and year ended September 30, 2010, respectively, related to direct results of the Distribution business. Due to its sale, the direct results of this business have been presented as discontinued operations for each period presented in accordance with U.S. GAAP. In addition, the three months and year ended September 30, 2011 includes a gain of $15 million and $271 million, respectively, related to Ashland's sale of its Distribution business.
|
Ashland Inc. and Consolidated Subsidiaries
|
Table 2
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(In millions - preliminary and unaudited)
|
||||||||
September 30
|
||||||||
2011
|
2010
|
|||||||
ASSETS | ||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 737 | $ | 417 | ||||
Accounts receivable
|
1,482 | 1,115 | ||||||
Inventories
|
925 | 447 | ||||||
Deferred income taxes
|
163 | 112 | ||||||
Other assets
|
80 | 49 | ||||||
Held for sale (a)
|
- | 693 | ||||||
3,387 | 2,833 | |||||||
Noncurrent assets
|
||||||||
Goodwill
|
3,291 | 2,148 | ||||||
Intangibles
|
2,134 | 1,111 | ||||||
Asbestos insurance receivable
|
448 | 459 | ||||||
Deferred income taxes
|
11 | 335 | ||||||
Other assets
|
779 | 536 | ||||||
Held for sale (a)
|
2 | 270 | ||||||
6,665 | 4,859 | |||||||
Property, plant and equipment
|
||||||||
Cost
|
4,306 | 3,109 | ||||||
Accumulated depreciation and amortization
|
(1,392 | ) | (1,271 | ) | ||||
2,914 | 1,838 | |||||||
Total assets
|
$ | 12,966 | $ | 9,530 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities
|
||||||||
Short-term debt
|
$ | 83 | $ | 71 | ||||
Current portion of long-term debt
|
101 | 45 | ||||||
Trade and other payables
|
911 | 727 | ||||||
Accrued expenses and other liabilities
|
644 | 523 | ||||||
Held for sale (a)
|
- | 321 | ||||||
1,739 | 1,687 | |||||||
Noncurrent liabilities
|
||||||||
Long-term debt (noncurrent portion)
|
3,648 | 1,108 | ||||||
Employee benefit obligations
|
1,566 | 1,367 | ||||||
Asbestos litigation reserve (noncurrent portion)
|
783 | 841 | ||||||
Deferred income taxes
|
404 | 145 | ||||||
Other liabilities
|
691 | 575 | ||||||
7,092 | 4,036 | |||||||
Stockholders’ equity
|
4,135 | 3,807 | ||||||
Total liabilities and stockholders' equity
|
$ | 12,966 | $ | 9,530 | ||||
(a) |
September 30, 2010 primarily relates to assets and liabilities of the Distribution business that qualified for held for sale classification in accordance with U.S. GAAP.
|
Table 3
|
|||||||||
STATEMENTS OF CONSOLIDATED CASH FLOWS
|
|||||||||
(In millions - preliminary and unaudited)
|
|||||||||
Year ended
|
|||||||||
September 30
|
|||||||||
2011
|
2010
|
||||||||
CASH FLOWS (USED) PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
|
|||||||||
Net income
|
$ | 414 | $ | 141 | |||||
Income from discontinued operations (net of income taxes)
|
(358 | ) | (53 | ) | |||||
Adjustments to reconcile income from continuing operations to
|
|||||||||
cash flows from operating activities
|
|||||||||
Depreciation and amortization
|
299 | 280 | |||||||
Debt issuance cost amortization
|
26 | 81 | |||||||
Deferred income taxes
|
(57 | ) | (67 | ) | |||||
Equity income from affiliates
|
(17 | ) | (19 | ) | |||||
Distributions from equity affiliates
|
5 | 17 | |||||||
Gain from sale of property and equipment
|
(2 | ) | (4 | ) | |||||
Stock based compensation expense
|
16 | 14 | |||||||
Stock contributions to qualified savings plans
|
13 | 22 | |||||||
Net (gain) loss on acquisitions and divestitures
|
5 | (21 | ) | ||||||
Loss on early retirement of debt
|
- | 5 | |||||||
Loss (gain) on auction rate securities
|
1 | (2 | ) | ||||||
Actuarial loss on pension and postretirement plans
|
318 | 268 | |||||||
Inventory fair value adjustment related to ISP acquisition
|
16 | - | |||||||
Change in operating assets and liabilities (a)
|
(436 | ) | (111 | ) | |||||
243 | 551 | ||||||||
CASH FLOWS (USED) PROVIDED BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
|
|||||||||
Additions to property, plant and equipment
|
(201 | ) | (192 | ) | |||||
Proceeds from disposal of property, plant and equipment
|
14 | 21 | |||||||
Purchase of operations - net of cash acquired
|
(2,002 | ) | (23 | ) | |||||
Proceeds from sale of operations or equity investments
|
76 | 64 | |||||||
Proceeds from sales and maturities of available-for-sale securities
|
11 | 150 | |||||||
(2,102 | ) | 20 | |||||||
CASH FLOWS (USED) PROVIDED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
|
|||||||||
Proceeds from issuance of long-term debt
|
2,910 | 334 | |||||||
Repayment of long-term debt
|
(1,513 | ) | (780 | ) | |||||
(Repayment of)/proceeds from short-term debt
|
12 | 48 | |||||||
Repurchase of common stock
|
(71 | ) | - | ||||||
Debt issuance costs
|
(82 | ) | (13 | ) | |||||
Cash dividends paid
|
(51 | ) | (35 | ) | |||||
Proceeds from exercise of stock options
|
3 | 6 | |||||||
Excess tax benefits related to share-based payments
|
4 | 5 | |||||||
1,212 | (435 | ) | |||||||
CASH (USED) PROVIDED BY CONTINUING OPERATIONS
|
(647 | ) | 136 | ||||||
Cash (used) provided by discontinued operations
|
|||||||||
Operating cash flows
|
2 | (45 | ) | ||||||
Investing cash flows
|
955 | (16 | ) | ||||||
Effect of currency exchange rate changes on cash and cash equivalents
|
10 | (10 | ) | ||||||
INCREASE IN CASH AND CASH EQUIVALENTS
|
320 | 65 | |||||||
Cash and cash equivalents - beginning of year
|
417 | 352 | |||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$ | 737 | $ | 417 | |||||
DEPRECIATION AND AMORTIZATION
|
|||||||||
Specialty Ingredients
|
$ | 113 | $ | 99 | |||||
Water Technologies
|
85 | 88 | |||||||
Performance Materials
|
59 | 53 | |||||||
Consumer Markets
|
38 | 36 | |||||||
Unallocated and other
|
4 | 4 | |||||||
$ | 299 | $ | 280 | ||||||
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
|
|||||||||
Specialty Ingredients
|
$ | 74 | $ | 75 | |||||
Water Technologies
|
49 | 32 | |||||||
Performance Materials
|
32 | 29 | |||||||
Consumer Markets
|
34 | 39 | |||||||
Unallocated and other
|
12 | 17 | |||||||
$ | 201 | $ | 192 | ||||||
(a)
|
Excludes changes resulting from operations acquired or sold.
|
Ashland Inc. and Consolidated Subsidiaries
|
Table 4 | ||||||||||||||||
INFORMATION BY INDUSTRY SEGMENT
|
|||||||||||||||||
(In millions - preliminary and unaudited)
|
|||||||||||||||||
Three months ended
|
Year ended | ||||||||||||||||
September 30
|
September 30 | ||||||||||||||||
2011
|
2010
|
2011 | 2010 | ||||||||||||||
SPECIALTY INGREDIENTS (a) (b)
|
|||||||||||||||||
Sales per shipping day
|
$ | 4.8 | $ | 3.7 | $ | 4.3 | $ | 3.6 | |||||||||
Metric tons sold (thousands)
|
46.9 | 42.8 | 174.6 | 163.6 | |||||||||||||
Gross profit as a percent of sales | 32.5 | % | 28.7 | % | 32.9 | % | 33.7 | % | |||||||||
WATER TECHNOLOGIES (a) | |||||||||||||||||
Sales per shipping day | $ | 7.7 | $ | 7.2 | $ | 7.5 | $ | 7.1 | |||||||||
Gross profit as a percent of sales | 30.5 | % | 31.7 | % | 30.8 | % | 34.1 | % | |||||||||
PERFORMANCE MATERIALS (a) (b) | |||||||||||||||||
Sales per shipping day | $ | 5.1 | $ | 5.5 | $ | 5.2 | $ | 5.1 | |||||||||
Pounds sold per shipping day | 4.0 | 4.8 | 4.3 | 4.5 | |||||||||||||
Gross profit as a percent of sales | 12.4 | % | 12.8 | % | 13.1 | % | 16.0 | % | |||||||||
CONSUMER MARKETS (a) | |||||||||||||||||
Lubricant sales (gallons) | 41.5 | 44.2 | 171.3 | 174.3 | |||||||||||||
Premium lubricants (percent of U.S. branded volumes) | 30.1 | % | 30.2 | % | 31.3 | % | 29.6 | % | |||||||||
Gross profit as a percent of sales | 23.0 | % | 28.9 | % | 27.3 | % | 32.0 | % | |||||||||
(a)
|
Gross profit as a percent of sales is defined as sales, less cost of sales divided by sales.
|
||||||||||||||||
(b) | All information presented excludes activity related to ISP, which was acquired on August 23, 2011. |
Table 5
|
|||||||||||||||||||||||
RECONCILIATION OF NON-GAAP DATA - INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|||||||||||||||||||||||
(In millions - preliminary and unaudited)
|
|||||||||||||||||||||||
Three Months Ended September 30, 2011
|
|||||||||||||||||||||||
Specialty
|
Water
|
Performance
|
Consumer
|
Unallocated
|
|||||||||||||||||||
Ingredients
|
Technologies
|
Materials
|
Markets
|
& Other
|
Total
|
||||||||||||||||||
OPERATING INCOME (LOSS)
|
|||||||||||||||||||||||
Actuarial loss on pension and postretirement benefit plans
|
$ | - | $ | - | $ | - | $ | - | $ | (438 | ) | $ | (438 | ) | |||||||||
Severance
|
- | (9 | ) | (1 | ) | - | (26 | ) | (36 | ) | |||||||||||||
Inventory fair value adjustment
|
(16 | ) | - | - | - | - | (16 | ) | |||||||||||||||
Environmental reserve adjustment
|
- | (7 | ) | - | - | (6 | ) | (13 | ) | ||||||||||||||
Accelerated depreciation/impairment
|
- | (4 | ) | - | - | - | (4 | ) | |||||||||||||||
All other operating income
|
72 | 30 | 13 | 29 | (7 | ) | 137 | ||||||||||||||||
Operating income
|
56 | 10 | 12 | 29 | (477 | ) | (370 | ) | |||||||||||||||
NET INTEREST AND OTHER FINANCING EXPENSE
|
(33 | ) | (33 | ) | |||||||||||||||||||
NET LOSS ON ACQUISITIONS AND DIVESTITURES
|
(26 | ) | (26 | ) | |||||||||||||||||||
OTHER EXPENSE
|
(1 | ) | (1 | ) | |||||||||||||||||||
INCOME TAX (EXPENSE) BENEFIT
|
|||||||||||||||||||||||
Key items
|
169 | 169 | |||||||||||||||||||||
Tax adjustments and discrete items
|
11 | 11 | |||||||||||||||||||||
All other income tax expense
|
(23 | ) | (23 | ) | |||||||||||||||||||
157 | 157 | ||||||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
$ | 56 | $ | 10 | $ | 12 | $ | 29 | $ | (380 | ) | $ | (273 | ) | |||||||||
Three Months Ended September 30, 2010
|
|||||||||||||||||||||||
Specialty
|
Water
|
Performance
|
Consumer
|
Unallocated
|
|||||||||||||||||||
Ingredients
|
Technologies
|
Materials
|
Markets
|
& Other
|
Total
|
||||||||||||||||||
OPERATING INCOME (LOSS)
|
|||||||||||||||||||||||
Actuarial loss on pension and postretirement benefit plans
|
$ | - | $ | - | $ | - | $ | - | $ | (268 | ) | $ | (268 | ) | |||||||||
Severance
|
(11 | ) | (11 | ) | |||||||||||||||||||
Accelerated depreciation/impairment
|
- | - | (6 | ) | - | - | (6 | ) | |||||||||||||||
All other operating income
|
21 | 23 | 17 | 54 | (10 | ) | 105 | ||||||||||||||||
Operating income
|
21 | 23 | - | 54 | (278 | ) | (180 | ) | |||||||||||||||
NET INTEREST AND OTHER FINANCING EXPENSE
|
(27 | ) | (27 | ) | |||||||||||||||||||
NET GAIN ON ACQUISITIONS AND DIVESTITURES
|
4 | 4 | |||||||||||||||||||||
OTHER INCOME
|
1 | 1 | |||||||||||||||||||||
INCOME TAX BENEFIT
|
|||||||||||||||||||||||
Key Items
|
89 | 89 | |||||||||||||||||||||
Previous acquisition and divestiture adjustments
|
8 | 8 | |||||||||||||||||||||
All other income tax expense
|
(16 | ) | (16 | ) | |||||||||||||||||||
81 | 81 | ||||||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
$ | 21 | $ | 23 | $ | - | $ | 54 | $ | (219 | ) | $ | (121 | ) | |||||||||
Ashland Inc. and Consolidated Subsidiaries
|
Table 6
|
|||||||||||||||
RECONCILIATION OF NON-GAAP DATA - FREE CASH FLOW
|
||||||||||||||||
(In millions - preliminary and unaudited)
|
||||||||||||||||
Three months ended | Year ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
Free cash flow
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Total cash flows provided by operating activities
|
||||||||||||||||
from continuing operations
|
$ | 154 | $ | 208 | $ | 243 | $ | 551 | ||||||||
Less:
|
||||||||||||||||
Additions to property, plant and equipment
|
105 | 94 | 201 | 192 | ||||||||||||
Cash dividends paid
|
14 | 12 | 51 | 35 | ||||||||||||
Free cash flows
|
$ | 35 | $ | 102 | $ | (9 | ) | $ | 324 |
Ashland Inc. and Consolidated Subsidiaries
|
Table 7
|
||||||||
RECONCILIATION OF NON-GAAP DATA - ADJUSTED EBITDA
|
|||||||||
(In millions - preliminary and unaudited)
|
|||||||||
Three months ended
|
|||||||||
September 30
|
|||||||||
Adjusted EBITDA - Ashland Inc.
|
2011
|
2010
|
|||||||
Operating loss
|
$ | (370 | ) | $ | (180 | ) | |||
Add:
|
|||||||||
Depreciation and amortization (a)
|
84 | 65 | |||||||
Key items (see Table 5)
|
507 | 285 | |||||||
Adjusted EBITDA
|
$ | 221 | $ | 170 | |||||
Adjusted EBITDA - Specialty Ingredients
|
|||||||||
Operating income
|
$ | 56 | $ | 21 | |||||
Add:
|
|||||||||
Depreciation and amortization
|
42 | 24 | |||||||
Key items (see Table 5)
|
16 | - | |||||||
Adjusted EBITDA
|
$ | 114 | $ | 45 | |||||
Adjusted EBITDA - Water Technologies
|
|||||||||
Operating income
|
$ | 10 | $ | 23 | |||||
Add:
|
|||||||||
Depreciation and amortization (a)
|
20 | 21 | |||||||
Key items (see Table 5)
|
20 | - | |||||||
Adjusted EBITDA
|
$ | 50 | $ | 44 | |||||
Adjusted EBITDA - Performance Materials
|
|||||||||
Operating income
|
$ | 12 | $ | - | |||||
Add:
|
|||||||||
Depreciation and amortization (a)
|
11 | 11 | |||||||
Key items (see Table 5)
|
1 | 17 | |||||||
Adjusted EBITDA
|
$ | 24 | $ | 28 | |||||
Adjusted EBITDA - Consumer Markets
|
|||||||||
Operating income
|
$ | 29 | $ | 54 | |||||
Add:
|
|||||||||
Depreciation and amortization
|
10 | 9 | |||||||
Key items (see Table 5)
|
- | - | |||||||
Adjusted EBITDA
|
$ | 39 | $ | 63 | |||||
(a)
|
Depreciation and amortization for the three months ended September 30, 2011 and 2010 excludes $4 million (Water Technologies) and $6 million (Performance Materials) of accelerated depreciation, respectively, which is displayed as a key item within this table.
|
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