Chemical maker Ashland posted a better-than-expected quarterly profit as it raised prices to counter rising raw material costs, sending its shares up more than 4% in premarket trading.
The company makes a wide range of specialty chemicals, including Valvoline oil as well as materials for the packaging and water purification industries. Its improving results offer a small hint on broader economic recovery.
The company's chief executive, James O'Brien, recently underwent surgery to fix a perforated colon. Ashland said last month that O'Brien would be away for up to three months. O'Brien is working on a limited basis after his surgery, a spokesman said on Tuesday.
For the second quarter ended on March 31, Ashland's net income came to $353 million, or $4.39 per share, including a $231 million gain from the sale of its distribution unit to private equity firm TPG Capital for $979 million cash. Excluding that and other one-time items, Ashland posted earnings of 86 cents per share. By that measure, analysts expected 77 cents, according to Thomson Reuters I/B/E/S. Year-earlier net income was $22 million, or 27 cents per share.
Revenue rose 9% to $1.56 billion. Analysts expected $1.49 billion. The cost of sales rose 14% to $1.14 billion.
Shares of Ashland were up 4.3% to $59.50 in trading before the market opened. The stock price has ranged from $42.77 to $63.69 in the past 52 weeks.
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Keywords : Ashland Ashland CEO James O'Brien Ashland James J. O’Brien AshlandQ2 2011 James O'Brien packaging industry packaging industry Ashland Q2 2011 Specialty Chemicals specialty chemicals Ashland Valvoline Ashland Valvoline Oil water purification industry water purification industry Ashland
Email requestCompany HomepageAshland
5200 Blazer Parkway
43017 Dublin, Ohio
USA
Tel: +1 614 7903333
Fax: +1 614 7903426
Web: http://www.ashland.com
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