(RTTNews) - Chemical company Ashland Inc. (ASH: News ) announced Wednesday preliminary results for the fourth quarter, reporting a profit, compared to a year-ago loss, reflecting lower expenses and a gain from the sale of its Drew Marine division. On an adjusted basis, earnings came in above analysts' estimates by 6 cents.

Net income for the quarter was $93 million or $1.22 per share, compared to a loss of $10 million or $0.15 per share last year.

Income from continuing operations was $98 million or $1.30 per share, compared with a loss of $1 million or $0.01 per share in the previous year quarter.

Excluding gains from special items totaling $0.34 per share, income from continuing operations was $0.96 per share for the quarter. On an average, 11 analysts polled by Thomson Reuters expected the company to report $0.90 per share for the quarter. Analysts' estimates typically exclude special items.

Special items for the quarter included, among other charges and gains, severance and accelerated depreciation charges of $0.20 per share and a pretax gain on the sale of Drew Marine, a division within Ashland Hercules Water Technologies, of $0.50 per share.

Sales and operating revenues for the quarter edged down to $2.11 billion from $2.22 billion in the prior-year quarter. Analysts expected revenues of $2.07 billion for the quarter.
Meanwhile, pro forma sales and operating revenue declined 25% to $2.11 billion from $2.82 billion in the year-ago quarter. Ashland completed the acquisition of Hercules Incorporated in November last year, affecting the comparability of reported results versus the same prior-year period. Hence, pro forma results adjust for the impact of special items and include Hercules' results as if the acquisition had been completed on Oct. 1, 2007.

Cost of sales and operating expenses for the quarter declined to $1.60 billion from $1.90 billion in the comparable period.

Adjusted pro forma EBITDA increased 37% to $224 million from $163 million. "Our 37-percent increase in EBITDA versus the prior-year quarter reflects the benefits of cost-reduction initiatives and successful margin management. This more than offset year-versus-year volume declines ranging from 3 percent in Ashland Consumer Markets, which is our Valvoline business, to 25 percent in Ashland Performance Materials," said Chairman and Chief Executive Officer James O'Brien.

For the full-year, net income was $71 million or $0.96 per share, down from $167 million or $2.63 per share in the same period last year. Income from continuing operations plunged to $78 million or $1.07 per share from $175 million or $2.76 per share a year ago.

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