Specialty chemicals firm Ashland Inc. (ASH) Tuesday reported a profit for the first quarter, helped by a rise in revenues and lower costs.
The Covington, Kentucky-based company reported net income of $86 million or $1.10 per share for the quarter, compared to a net loss of $119 million or $1.73 per share in the prior year.
In the latest quarter, discrete income tax effects resulted in a net benefit to earnings of $6 million, or $0.08 per share. In the year-ago quarter, key items negatively affected earnings by $1.98 per share.
The latest results also included non-cash intangible amortization expense of $0.15 per share, compared to $0.12 per share negative impact in the previous year.
Income from continuing operations for the quarter was $76 million or $0.97 per share, compared to a loss of $119 million or $1.73 per share in the year-ago period.
On average, 9 analysts polled by Thomson Reuters expected the company to earn $0.72 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter improved to $2.020 billion from $1.966 billion in the prior year. Pro forma sales declined 10% to $2.020 billion from $2.233 billion. Analysts estimated revenues of $2.00 billion for the quarter.
Segment-wise, Functional Ingredients generated $210 million during the period, up from last year's $119 million. Water Technologies' sales increased to $443 million from $318 million in the previous year. In Performance Materials, quarterly sales slipped to $271 million from last year's $324 million. Consumer Markets brought in $400 million to total revenues, compared to $388 million last year. In Distribution segment, quarterly revenues slipped to $729 million from $853 million.
Operating income for the quarter was $146 million, in comparison with an operating loss of $7 million last year.
Costs and expenses for the quarter dropped to $1.888 billion from last year's $1.985 billion.
ASH closed Monday's regular trade at $39.63, up from the previous close of $38.71, on 985,000 shares.
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