Valvoline’s operating income for the quarter ended June 30 was $26 million, down 13 percent from the year-ago quarter, attributed to lower lubricant sales volumes and higher raw material costs. Valvoline’s parent Ashland Inc. reported net income of $1.8 billion for the quarter, the third quarter of the companys fiscal year. The results include a $1.5 billion net gain on the sale of Ashlands 38 percent interest in Marathon Ashland Petroleum.
Ashlands sale to Marathon of its interest in MAP included a Catlettsburg, Ky., 6,700 barrel per day Group I base oil plant and 60 Valvoline Instant Oil Change centers. Excluding the gain from the MAP transaction, Ashlands net income for the June 2005 quarter was $231 million, or $3.09 a share, compared to $161 million, or $2.26 a share, for the same quarter last year.
The completion of the MAP transaction marked an extraordinary milestone in Ashlands history, said James J. OBrien, Ashland chairman and chief executive officer. After 81 years in the petroleum refining and marketing industry, Ashland is now focused on growth as a two-sector company with operations in chemicals and transportation.
The chemical sector includes Ashland Distribution, Valvoline and Ashland Specialty Chemical divisions. The sector as a whole reported operating income of $105 million for the quarter, a 40 percent improvement over the June 2004 quarter.
Valvolines operating income for the June 2005 quarter was $26 million, down from $30 million in the same quarter last year. The company attributed the decline to a 4 percent decrease in lubricant sales volumes in a soft motor oil market and to higher raw material costs. Valvoline International reported a record quarter, the company said, with operating income improving by 31 percent.
Valvolines lubricant sales for the quarter were 48.1 million gallons, down from 50 million in the year-ago quarter. For the nine months ended June 30, lubricant sales were 131.4 million gallons, compared to 141.3 million in the nine months ending June 30, 2004.For both the June quarter and the past nine months, 24 percent of Valvoline’s U.S. branded volumeswere premium products, such as MaxLife or SynPowera company spokesman said.