Ashland Posts Profit In Q4 - Quick Facts

(RTTNews) - Ashland Inc. (ASH) reported preliminary earnings from continuing operations of $404 million, or $5.13 per share, on sales of $1.9 billion in the fourth quarter of fiscal 2013. These results included five key items that together had a net favorable impact on continuing operations of about $283 million, net of tax, or $3.59 per share. According to the company, the largest key item was a non-cash benefit of $3.98 per share related to an actuarial gain on pension as part of the company's standard year-end re-measurement. Excluding all key items, Ashland's adjusted earnings per share stood at $1.54.

Last year, the firm's loss from continuing operations was $272 million, or $3.47 per share, on sales of $2.1 billion. The year-ago results included five key items that together lowered income from continuing operations by nearly $422 million, net of tax, or $5.34 per share. Excluding these five key items, Ashland's adjusted income from continuing operations was $150 million, or $1.87 per share a year before.

Analysts polled by Thomson Reuters expected earnings per share of $1.50, on $1.93 billion in revenues for the quarter. Analysts' estimates typically exclude one-time items.

Separately, the firm announced a global restructuring program to drive growth, streamline the organization and improve accountability. The restructuring is likely to generate improved business performance and annualized cost savings of $150 million - $200 million, which should better position Ashland to achieve EBITDA margins consistent with the top quartile of its specialty chemicals peer group. The program would be implemented in fiscal 2014, with full run-rate savings expected to be achieved within 12 to 15 months.