Ashland Inc., a global leader in specialty chemical solutions for consumer and industrial markets, announced preliminary financial results for the quarter ended June 30, 2013, the third quarter of its 2013 fiscal year.

Highlights:

- Earnings from continuing operations equal $1.47 per diluted share; adjusted EPS, excluding key items, is $1.66 per diluted share

- Results reflect a non-cash charge, after tax, of $0.16 per share related to elastomers inventory write-down

- Free cash flow estimate for fiscal 2013 raised to approximately $450 million

- Company exploring strategic options for Ashland Water Technologies, including possible sale

- Ashland initiates process to sell elastomers business

Ashland reported income from continuing operations of $117 million, or $1.47 per diluted share, on sales of $2.1 billion. These results included several key items that together reduced income from continuing operations by approximately $15 million, net of tax, or $0.19 per diluted share.

The largest key item was a $10 million after-tax charge from adjustments made to environmental reserves primarily related to legacy non-operating sites. Excluding all key items, Ashland's adjusted earnings per share declined 19 percent, to $1.66, when compared to the year-ago quarter. These adjusted results include a non-cash write-down of $17 million, or $0.16 per diluted share, on elastomers inventory within Ashland Performance Materials.

For the year-ago quarter, Ashland reported income from continuing operations of $160 million, or $2.00 per diluted share, on sales of $2.1 billion. The year-ago results included three key items that had a combined negative effect of $3 million, net of tax, or $0.04 per diluted share. Excluding these three items, adjusted income from continuing operations was $163 million, or $2.04 per diluted share.

For the remainder of this news release, financial results exclude the effect of key items in both the current and prior-year quarters. On this basis, Ashland's results as compared to the year-ago quarter were as follows:

- Volumes rose 3 percent;

- Sales declined 4 percent to $2.1 billion;

- Operating income decreased 20 percent to $220 million;

- Earnings before interest, taxes, depreciation and   amortization (EBITDA) decreased 15 percent to $325 million; and

- EBITDA as a percent of sales decreased 200 basis points to 15.8 percent.

About Ashland

In more than 100 countries, the people of Ashland Inc. provide the specialty chemicals, technologies and insights to help customers create new and improved products for today and sustainable solutions for tomorrow. Our chemistry is at work every day in a wide variety of markets and applications, including architectural coatings, automotive, construction, energy, food and beverage, personal care, pharmaceutical, tissue and towel, and water treatment.

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