VIOC Sees Same-Store Sales Jump 10 Percent

Ashland Inc. recently announced results for the quarter ended June 30, 2010, the third quarter of its 2010 fiscal year.

For the quarter, Ashland reported sales of $2,362 million, operating income of $163 million and net income of $148 million. Sales increased 16 percent over the June 2009 quarter to $2,362 million.

“We delivered another quarter of solid results. All of our commercial units achieved year-over-year volume and sales increases, on a comparable basis,” said James O’Brien, Ashland’s chairman and CEO.

During the quarter, Ashland averaged 6 percent raw-material cost inflation, following a 7 percent average increase from the December 2009 to March 2010 quarters.

“We continue to implement price increases across all of our commercial units to offset our increased raw material costs,” O’Brien said. “While in the short term, the lag between cost increases and full implementation of price increases compresses margins, when raw material costs ultimately stabilize, our pricing actions should enable us to fully recover our increased costs.”

Ashland Consumer Markets, the division which includes Valvoline and Valvoline Instant Oil Change, saw sales of $463 million, an increase of 5 percent over the year-ago June quarter and 8 percent sequentially. While total lubricant volume increased by 1 percent versus the June 2009 quarter, with the onset of the summer driving season, volumes increased 6 percent sequentially. Same-store sales at Valvoline Instant Oil Change increased by 10 percent over the prior June quarter.

In the report, Ashland noted that it sold 46.2 million gallons of lubricants in the quarter, compared with 45.7 million gallons in 2009. Year to date, the company reported sales of 130.1 million gallons of lubricants, compared with 116.4 million gallons in 2009.

Further, Ashland noted that sales of “premium lubricants” rose to 30.1 percent for the quarter, compared with 29.0 percent in 2009. Year to date, the company’s premium lubricants sales were accounting for 29.4 percent of branded volume.