Ashland reports 4th-quarter profit

COVINGTON, Ky. (AP) — Chemical maker Ashland Inc. on Wednesday reported a fiscal fourth-quarter profit, as the company cut costs to offset a sales decline.

Profit for the quarter ended Sept. 30 totaled $93 million, or $1.22 per share, compared with a loss of $10 million, or 15 cents per share, last year. Adjusted to exclude one-time charges related to severance and retiring some loans, plus benefits from an insurance adjustment and the sale of a unit, net income from continuing operations totaled 96 cents per share.

Revenue fell 5 percent to $2.11 billion from $2.22 billion a year ago.

Analysts polled by Thomson Reuters, on average, predicted a profit of 90 cents per share on revenue of $2.07 billion. Analyst estimates typically exclude one-time items.

The company bought specialty chemical business Hercules Inc. in November 2008, which affects the comparability of the results with the prior year period, the company said. On a pro forma basis, assuming the transaction had occurred in 2007, Ashland said sales fell 25 percent while operating income slid 78 percent.

For the year, profit fell 58 percent to $71 million, or 96 cents per share, from $167 million, or $2.63 per share, a year ago.

Revenue fell 3 percent to $8.11 billion from $8.38 billion a year ago.

The company said it has cut about $355 million in costs of a total of $400 million it plans to cut.

"Demand appears to be showing some signs of growth in many end markets," said James J. O'Brien, chairman and CEO. "We will continue to manage our pricing and control our costs in order to create operating leverage that will support both increased profitability and growth as the economy improves."

In midday trading, Ashland shares fell $5.56, or 14 percent, to $33.80. The stock has more than tripled in the year to date.