Ashlands Consumer Markets (Valvoline) segment reported sales of $430 million in the quarter ending March 31, the second quarter of the companys 2010 fiscal year, a 5.7 percent increase over the year-ago period. Valvolines operating income was $69 million, a 4.5 percent increase.

Total lubricant volumes in the quarter increased 16 percent, to 43.7 million gallons. Same-store sales at Valvoline Instant Oil Change increased 4 percent over the prior year.

Valvolines gross profit was 33 percent of sales in the March quarter, compared to 32 percent a year earlier. Selling, general and administrative expenses rose 16 percent over the year-ago quarter, because of higher pension, benefit and incentive costs, along with higher advertising expenses, the company reported. The segments earnings before interest, taxes, depreciation and amortization totaled $78 million in the quarter, compared with $75 million in the year-ago quarter and $76 million in the December 2009 quarter.

Sales at Ashland as a whole increased 13 percent from the year-ago quarter, to $2.248 billion. The companys operating income increased 13 percent to $151 million, and earnings before interest, taxes, depreciation and amortization rose 1 percent to $224 million. Profits, however, fell to $22 million in the quarter, down from $48 million intheyear-ago period.

Ashlands results reflect significant volume increases across our businesses, as well as the progress we have made in resizing our cost structure during the past two years, said James J. OBrien, Ashland chairman and CEO. All of our businesses have been implementing significant price increases to offset these escalating [raw material] costs. Once raw materials stabilize, we expect our pricing to fully recover the cost increases.

OBrien added that Consumer Markets (Valvoline) continued to deliver strong results, producing its fifth straight quarter with an EBITA margin in excess of 18 percent.