Lubricant blender Valvolines operating income reached $29 million for the quarter ending Sept. 30, down 46.3 percent from $54 million in the year-earlier period, while sales topped $517 million, up 12 percent.
The sales increase came despite a 6 percent decline in lubricant volume from the year-earlier period to 41.5 million gallons. The quarter ending Sept. 30 is the fourth quarter of Valvoline parent company Ashlands fiscal year.
Ashland attributed the majority of Valvolines lubricant volume decline to the loss of a low-margin tolling account.
Excluding this, volume was off approximately 2 percent versus the prior-year quarter, generally in line with overall market trends, Ashland stated. These trends are likely attributable to fewer miles driven during the quarter and reduced consumer spending on routine vehicle maintenance.
As a whole, Ashland of Covington, Ky., reported an operating loss of $370 million on revenues of $1.9 billion.