28 July 2011 11:59 [Source: ICIS news]
LONDON (ICIS)--Ashland’s unadjusted fiscal third-quarter net income fell by 41% year on year to $87m (€61m), partly due to high raw materials costs, the US specialty chemicals company said on Thursday.
Operating income was also down, by 14% to $120m, despite a 13% rise in sales revenue to $1.67bn.
“Our June quarter results were significantly affected by steep raw-material cost increases,” said chairman and CEO James O'Brien.
The cost increases were approximately double the average rise in the prior three quarters, he said.
"While we've been generally successful in recovering our raw material costs on a dollar basis, we have yet to recover margins, and as a result, gross profit as a percent of sales has declined," O’Brien added.
Diluted earnings per share also fell, decreasing to $1.09 for the quarter from $1.85 in the same period last year.
"We will remain focused on, and continue to take, appropriate pricing actions to recover our costs and ultimately restore margins," said O'Brien.
($1 = €0.70)
For more on Ashland, visit ICIS company intelligence
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