Ashland posts Q4 net loss on 'difficult environment'

28 October 2008 11:58  [Source: ICIS news]

LONDON (ICIS news)--Ashland has reported a fourth-quarter net loss of $10m (€7.98m), down from $32m net profits in the same period last year, due to a continued difficult economic environment and asbestos-related charges, it said on Tuesday.

The US specialty chemicals company said that its net results included a $9m loss from discontinued operations, primarily due to adjustments to asbestos-related insurance receivables.

Operating income for the period was at $28m compared with $26m in July-September last year, but excluding key items it fell to $24m from $40m.

Sales and operating revenues were 6.3% higher at $2.22bn.

Chairman and CEO James O'Brien said the difficult economic environment affected Ashland Performance Materials' composites business from a demand and raw materials cost perspective, and Ashland Water Technologies, which suffered from significant declines in gross profit percentage.

For the fiscal year ended 30 September, Ashland's sales and operating revenue totalled $8.38bn, up 8% on 2007. Operating income came in at $213m compared with $216m in the prior year.

"While the economic environment continues to present an increasing challenge to near-term performance, we are making a number of strategic moves that enable us to strengthen our profile as a specialty chemicals company,” said O’Brien.

He added that the most important strategic step was the pending acquisition of specialty chemicals firm Hercules, which would “dramatically enhance our focus and scale in specialty additives and ingredients and paper and water technologies”.

Hercules shareholders will vote on the transaction at a meeting on 5 November.

($1 = €0.80)

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By: Hilde Ovrebekk
+44 20 8652 3214

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