Ashland Inc announced that earnings for its fiscal first quarter, ended Dec. 31, 2005, are expected to be higher than analyst estimates, which currently range from $0.41 to $0.71 per share.
Strong performances by the Ashland Paving And Construction Inc (APAC), Ashland Distribution and Ashland Specialty Chemical businesses are expected to drive the quarter's results.
In Ashland's Transportation Construction Sector, APAC is expected to report much stronger earnings as a result of improved profit margins, in spite of losses on hedges of diesel fuel purchases.
In addition, APAC is expected to record a gain of $10 million on the transfer of a shop/office facility that was subject to eminent domain.
In the Chemical Sector, Ashland Distribution and Ashland Specialty Chemical continue to report excellent profit growth, which will more than offset a very weak performance from Valvoline.
Beginning with the December quarter, Ashland will allocate substantially all corporate expenses to Ashland's four operating divisions, with the exception of certain legacy costs or items clearly not associated with the operating divisions.
Results for previously reported periods will be reclassified to conform with the new allocation methodology.
Ashland will report preliminary results for its fiscal first quarter at 8 a.m., EST, on Jan 25 and will follow with a conference call and webcast at 10 a.m., EST.
Ashland Inc is a Fortune 500 chemical and transportation construction company providing products, services and customer solutions throughout the world.
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