The Transportation Construction Sector benefited from margin improvement due to our efforts to incorporate higher material values and energy costs into our bids, as well as more favorable weather conditions in the quarter."
For the December 2005 quarter, in the Chemical Sector, robust results from Ashland Distribution and Ashland Specialty Chemical more than offset the weak performance from Valvoline. As a result, operating income for the Chemical Sector amounted to $62 million, a 27-percent improvement over the $49 million of operating income in the December 2004 quarter.
Ashland Specialty Chemical achieved record operating income for the December 2005 quarter of $27 million, up 69 percent over the $16 million of operating income in the prior-year quarter.
Ashland Distribution earned $34 million of operating income in the December 2005 quarter -- marking its eighth consecutive record quarter. Operating income increased by 70 percent compared with the prior-year quarter.
Valvoline's performance for the December 2005 quarter reflected a 6-percent decrease in total lubricant volumes in a declining US market for passenger-car lubricants, and continued high raw material costs. Sales and operating revenues were $310 million for the quarter, essentially even with $309 million of revenues in the December 2004 quarter.
The Transportation Construction Sector, commercially known as Ashland Paving And Construction Inc (APAC), reported operating income of $39 million for the December 2005 quarter, compared to $4 million in the December 2004 quarter.
marketing@alchempro.com
