Lubricant blender Valvoline reported record operating income of $95 million for the quarter ending June 30, a 265 percent jump from $26 million in the year-earlier period.
According to parent company Ashland, whose fiscal year ends Sept. 30, factors driving Valvolines improved quarterly performance included a combination of pricing actions that began in 2008, lower raw materials costs in the quarter, cost-savings initiatives and a continued shift in mix toward sales of premium brands.
Valvoline posted $441 million in sales and operating revenue for its third quarter, up 3 percent from $428 million in the year-earlier period.
Lubricant sales volume increased by 4 percent to 45.7 million gallons in the quarter, compared to its 2008 third quarter, which Ashland attributed primarily to increases in volumes sold through the do-it-yourself market channel. Same-store sales at Valvoline Instant Oil Change also increased 6 percent in the quarter, compared to the year-earlier period.
A New York Post article April 24 reported that Ashland began shopping the Valvoline division to pay down debt, and speculated it could fetch as much as $1 billion. Ashland has declined to comment on the report, and has made no announcements about a possible sale of the division.
Covington, Ky.-based Ashland on a whole reported third quarter operating income of $152 million on revenues of $2 billion.