DOW JONES NEWSWIRES Ashland Inc.'s (ASH) fiscal second-quarter earnings soared amid income related to the sale of its distribution business as the chemical company reported sales growth across its other businesses. The results beat analysts' expectations. "Our pricing actions enabled us to maintain overall margins sequentially despite a significant increase in raw material costs," Chairman and Chief Executive James J. O'Brien's said. Ashland has benefited from a industry-wide resurgence in demand and earlier multiyear restructuring efforts. The company has raised prices as it copes with rising commodities costs. It also has been selling assets to reduce its heavy debt load in the wake of its $2.6 billion takeover of Hercules in 2008. Ashland last month completed the sale of its distribution business and in January agreed to sell its pentaerythritol business, which produces a building block for products ranging from resins to varnishes, to a subsidiary of Perstorp Holding AB. For the quarter ended March 31, Ashland reported a profit of $353 million, or $4.39 a share, up from $22 million, or 27 cents a share, a year earlier. The latest period included $3.19 in income mostly related to the sale of its distribution business, which was accounted for as discontinued operations. Excluding earnings from its discontinued Ashland Distribution unit and other charges, Ashland's profit from continuing operations rose to 86 cents a share from 84 cents. Revenue increased 9.4% to $1.56 billion and volume was up 5%. Analysts polled by Thomson Reuters most recently forecast earnings of 77 cents on revenue of $1.49 billion. Operating margin fell to 7.8% from 9.3%. Sales at the consumer business, which includes Valvoline and accounts for nearly a third of its sales, were up 14%, including 3% growth in lubricant sales. Segment earnings declined 10%. Shares closed Monday at $57.05 and were inactive premarket. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
