Ashland Inc. (NYSE: ASH) is a Fortune 500 company which operates in more than 100 countries throughout the world. Presently based in Covington, Kentucky, in the United States, the company traces its roots back to Ashland, Kentucky (for which it is named).
Ashland Inc. (Ashland) business consists of five segments: Ashland Aqualon Functional Ingredients; Ashland Hercules Water Technologies; Ashland Performance Materials; Ashland Consumer Markets (Valvoline), and Ashland Distribution. On November 5, 2010, Ashland signed a definitive agreement with TPG Accolade, LLC to sell all of the assets of its global distribution business conducted by the Ashland Distribution segment. On January 28, 2010, Ashland completed the sale of its refined wood rosin and natural wood terpenes business, formerly known as Pinova, to a company formed by TorQuest Partners. In July 2010, Ashland and Sud-Chemie AG (Sud-Chemie) reached a contractual agreement on the formation of a global joint venture to merge their business activities in the foundry chemicals sector.
ASHLAND AQUALON FUNCTIONAL INGREDIENTS
Ashland Aqualon Functional Ingredients (Functional Ingredients) offers products that are designed to modify the properties of water-based systems. Functional Ingredients’ products are sold ingredients to other manufacturers, where they are used as small-quantity additives to provide functionality, such as thickening and rheology control; water retention; adhesive strength; binding power; film formation; protective colloid, suspending and emulsifying action; foam control; and pH stability. Functional Ingredients consists of businesses, such as regulated industries, coatings additives, construction and energy and specialties solutions. Regulated Industries’ food applications include bakery, beverage, confectionary, dairy, meat, meat analogues and pet food, prepared foods and sauces, dressings and fillings. Personal care applications include cosmetics, hair care, oral care, skin care, wound care and household products. In the pharmaceutical industry, Regulated Industries’ products are used for tablet binding, coatings, modified release and liquid and semi-liquid rheology control. Coatings Additives offers a portfolio of rheology solutions. For manufacturers of paints and other waterborne coatings products, these additives help in controlling product characteristics, such as gloss, spatter, leveling and build. Construction’s product applications include tile and adhesive cements, gypsum plasters, renders, joint compounds, concrete, external insulation systems, masonry and mortar cements and self-leveling compounds. These product applications provide a range of functional properties, including thickening, water retention, sag resistance, workability and consistency, adhesion, stabilization, pumping, rheological properties and strength. Energy and Specialties Solutions offers water-soluble solutions for a variety of applications in the oil and gas industries, including completion and workover fluids, drill-in fluids, oil-well cementing slurries, solvent thickeners and stimulation and hydraulic fracturing. It also provides products to the industrial specialties market, including applications in ceramics, fire-fighting fluids, foundry, industrial cleaners, inks and printing, mining, paint removers, paper and paper coatings, suspension polymerization and welding rods.
ASHLAND HERCULES WATER TECHNOLOGIES
Ashland Hercules Water Technologies (Water Technologies) is a global service business delivering specialty chemical products to a number of industries, including the paper, pulp, chemical, commercial and institutional, food and beverage, mining and municipal industries. Water Technologies is a producer of papermaking chemicals for pulp and paper processing, tissues and towels, packaging, printing and writing papers, and virgin and deinked pulps. Water Technologies offers a range of services, including analytical and applications laboratories, customized program offerings and its StreamLink Specialty Chemicals service model. It consists of business, such as process chemistries, utility water treatment chemistries and functional chemistries. The Process Chemistries business manufactures and sells a range of deposit control agents, defoamers, biocides and other process additives for markets, including pulp and paper manufacturing, food processing, oil refining and chemical processing, general manufacturing and extraction/mining. The Utility Water Treatment Chemistries business provides specialized chemicals and consulting services for the utility water treatment market, which includes boiler water, cooling water, fuel and waste streams. This business also manufactures and sells automated equipment, including feed and control systems, monitoring devices and remote system surveillance. The Functional Chemistries business produces specialized chemicals for the paper industry that impart properties, such as strength, liquid holdout and printability to the final paper or board. Product lines include sizing agents, wet/dry strength additives and specialized products, such as crepe and release additives for tissue manufacturing.
ASHLAND PERFORMANCE MATERIALS
Ashland Performance Materials (Performance Materials) is a manufacturer and supplier of specialty chemicals and customized services to the building and construction, transportation, metal casting, packaging and converting and marine markets. It provides polyester and vinyl ester resins and gelcoats, adhesives and specialty resins, and metal casting consumables and design services. Performance Materials consists of businesses, such as Composites and Adhesives and Casting Solutions. The Composites and Adhesives business manufactures and sells a range of unsaturated polyester and vinyl ester resins, gelcoats and low-profile additives for the reinforced plastics industry. Markets include the transportation, construction, marine and infrastructure end markets. It also markets vinyl ester resins under the DERAKANE and HETRON brand names and unsaturated polyester resins under the AROPOL brand name.
The Composites and Adhesives business manufactures and sells adhesive solutions to the packaging and converting, building and construction, and transportation markets and manufactures and markets specialty coatings and adhesive solutions across multiple industries. Technologies and markets include acrylic polymers for pressure-sensitive adhesives; polyvinyl acetate emulsions; urethane adhesives for flexible packaging applications; aqueous and radiation-curable adhesives and specialty coatings for the printing and converting applications; hot-melt adhesives for various packaging applications; emulsion polymer isocyanate adhesives for structural wood bonding; elastomeric polymer adhesives and butyl rubber roofing tapes for commercial roofing applications; acrylic, polyurethane and epoxy structural adhesives for bonding fiberglass reinforced plastics, composites, thermoplastics and metals in automotive, marine, recreational and industrial applications, and specialty phenolic resins for paper impregnation and friction material bonding. Casting Solutions manufactures and sells metal casting chemicals worldwide, including sand-binding resin systems, refractory coatings, release agents, engineered sand additives and riser sleeves. This business also provides casting process modeling, core-making process modeling and prototyping services.
ASHLAND CONSUMER MARKETS
Ashland Consumer Markets (Consumer Markets) markets packaged automotive lubricants, chemicals, appearance products, antifreeze and filters, with sales in more than 100 countries. Consumer Markets markets various brands of products and services to the private passenger car, light truck and heavy duty markets: Valvoline lubricants; Valvoline Premium Blue commercial lubricants; MaxLife lubricant products for vehicles with 75,000 or more miles; Valvoline Professional Series automotive chemicals; Pyroil automotive chemicals; Eagle One automotive appearance products; Car Brite automotive reconditioning products; MaxLife and Zerex antifreeze; Tectyl industrial products, and Valvoline Instant Oil Change automotive services. Consumer Markets consists of businesses, such as do it yourself (diy), installer channels, valvoline instant oil change (vioc), commercial & industrial (c&i) and valvoline international. The DIY business sells Valvoline and other branded and private label products to consumers who perform their own auto maintenance. These products are sold through retail auto parts stores, such as AutoZone, O’Reilly’s, Advance Auto Parts, mass merchandisers, such as Wal-Mart Stores, Inc., and warehouse distributors and their affiliated jobber stores, such as NAPA and CARQUEST.
The Installer Channels business sells branded products and services to installers (such as car dealers, general repair shops and quick lubes) and to auto auctions through a network of independent distributors and company owned and operated direct market operations. This business also sells to national accounts, such as Goodyear, Monro and Sears. In addition, this business includes distribution to quick lubes branded Valvoline Express Care, which consists of 341 independently owned and operated stores. The Valvoline Instant Oil Change chain provides Consumer Markets with a presence in the installer channels segment of the passenger car and light truck motor oil market. As of September 30, 2010, the 256 company owned and 606 independently owned and operated franchise VIOC centers were operating in 41 states. The C&I business sells branded products and services to on-highway fleets, construction companies and original equipment manufacturers (OEMs) through company owned and operated direct market operations, national accounts and a network of distributors. C&I business also maintain a strategic alliance with Cummins Inc. (Cummins) to distribute heavy duty lubricants to the commercial market, as well as smaller alliances with other global OEMs. Outside of North America, Valvoline International markets Valvoline, Eagle One, Zerex and other branded products through wholly owned affiliates, joint ventures, licensees and independent distributors in more than 100 countries. Valvoline International operates joint ventures with Cummins in Argentina, Brazil, China and India.
ASHLAND DISTRIBUTION
Ashland Distribution (Distribution) distributes chemicals, plastics and composite raw materials in North America and plastics in Europe and China. Distribution also provides environmental services, including hazardous and nonhazardous waste collection, recovery, recycling and disposal, in North America. Deliveries are made in North America through a network of owned, leased and third-party warehouses, as well as rail and tank terminals. Distribution operates businesses, such as chemicals, plastics, composites and environmental services. The Chemicals business distributes specialty and industrial chemicals, additives and solvents to industrial users in North America, as well as some export operations. Markets served include the paint and coatings, personal care, inks, adhesives, polymer, rubber, industrial and institutional compounding, automotive, appliance, oil and gas and paper industries. The Plastics business distributes a range of thermoplastic resins and offers specialized technical services to processors in North America, as well as some export operations. Processors include injection molders, extruders, blow molders and rotational molders. This business provides plastic material transfer and packaging services and less-than-truckload quantities of packaged thermoplastics. It also markets a range of thermoplastics to processors in Europe and the People’s Republic of China. The Composites business distributes polyester thermoset resins, gelcoats, fiberglass and other specialty reinforcements, catalysts and allied products to customers in the cast polymer, corrosion, marine, building and construction, and other fiber-reinforced plastics industries through distribution facilities located throughout North America. The Environmental Services business, working in cooperation with chemical waste service companies, provides customers, including automobile manufacturers, with nationwide hazardous and nonhazardous waste collection, recovery, recycling and disposal services. These services are offered through a North American network of distribution centers, including several storage facilities that have been fully permitted by the United States Environmental Protection Agency (USEPA). Distribution has 63 owned or leased facilities, 68 third-party warehouses, rail terminals and tank terminals and three locations that perform contract packaging activities. Distribution of thermoplastic resins in Europe is conducted in 20 countries through 15 third-party warehouses and one leased warehouse that also operates as a compounding facility.
Ashland was optimistic for 2002 although doubtful that they would match the record results of 2001. Their optimism was based on the strength of refining and marketing operations of MAP. In 2001, MAP launched or completed several initiatives that would add considerably to their future operating income, including retail expansion in the Midwest, a new nationwide network of travel centers, and the startup of a heavy crude oil conversion unit at the Garyville, Lousiana, refinery. In an attempt to consolidate operations, Ashland Distribution closed nine facilities and conducted a "quality of business" review to focus on its most profitable accounts. E-commerce efforts accounted for 15 percent of Ashland Distribution revenues.
Ashland Specialty Chemical remained a worldwide market and technology leader supplying high-performance products and services. A leading European producer of gelcoats and polyester resins was acquired more than doubling the size of Ashland's unsaturated polyester resins business in Europe. Research and development efforts focused on new products and aggressively seeking to build new geographic markets and applications for existing product lines.
Valvoline continued to develop new products, including MaxLife motor oil, the first oil specifically formulated for higher mileage engines, and MaxLife transmission fluids and antifreeze.
Chellgren's vision for the future of Ashland is to provide solutions for customers; provide opportunity for employees to achieve and grow; provide value for shareholders; and provide commitment to shareholders. To achieve these goals, Ashland commits to the "delivery of products and services that are differentiated by our knowledge of customers' needs as well as our technical expertise. We will attract, develop and retain talented and diverse people and provide an environment that encourages innovation, demands accountability and rewards performance. We will achieve high returns on investment that result in high returns for our shareholders." Through a combination of people, technology, and customer focus, Ashland strives to be "The Who In How Things Work."
Principal Subsidiaries:Ashland International Ltd.; Ashland Petroleum Company; APAC, Inc; Ashland Distribution Company; Ashland Specialty Chemical Company; The Valvoline Company; Ashland Services B. V.; Marathon Ashland Petroleum LLC; Speedway SuperAmerica LLC.
Principal Competitors:Honeywell, Inc.; Pennzoil-Quaker State Company; Safety-Kleen Corp.; ATMI, Inc.; American International Petroleum Corporation.
OVERALL
Beta: 2.81
Market Cap (Mil.): $4,906.81
Shares Outstanding (Mil.): 79.04
Annual Dividend: 0.60
Yield (%): 0.97
FINANCIALS
ASH Industry Sector
P/E (TTM): 13.61 10.53 25.53
EPS (TTM): 51.98 -- --
ROI: 4.69 1.00 17.76
ROE: 8.88 3.01 17.73
Statistics:
Public Company
Incorporated: 1924 as Ashland Refining Company
Employees: 25,100 (2001)
Sales: $7.72 billion (2001)
Stock Exchanges: New York
Ticker Symbol: ASH
NAIC: 325211 Plastics Material & Resin Manufacturing; 325199 All Other Basic Organic Chemical Manufacturing; 32411 Petroleum Refineries
Key Dates:
1910: Swiss Drilling Company is founded by J. Fred Miles.
1916: Miles moves his operations to Kentucky.
1918: Swiss Oil Company is incorporated in Lexington, Kentucky.
1923: Paul Blazer is hired to head up Ashland Refining Company.
1930: Ashland acquires Tri-State Refining Company.
1931: Ashland buys Cumberland Pipeline Company.
1936: Swiss Oil and Ashland Refining Company merge to create Ashland Oil and Refining Company; Blazer is elected president and CEO of the new company.
1948: Ashland merges with Cleveland-based Allied Oil Company; acquires Aetna Oil Company, Frontier Oil Company, and Freedom-Valvoline Oil Company.
1956: Ashland acquires R.J. Brown Company.
1957: Blazer retires as CEO. His nephew Rex Blazer takes over the top management spot, with Everett Wells becoming the new president.
1962: Ashland acquires United Carbon Company and Humble Oil & Refining Company.
1965: Orin Atkins becomes CEO.
1966: Ashland acquires Archer Daniels Midland Chemicals Company; Ashland forms a new operating subsidiary, Ashland Chemical Company.
1970: Shareholders approve changing the company's name to Ashland Oil, Inc. Acquisitions include Union Carbide Petroleum Company and Empire State Petroleum; Ashland Oil Canada Limited is formed.
1975: Ashland Coal, Inc. is formed.
1981: Ashland acquires United States Filter Corporation and Integon Corporation; Atkins resigns his position of CEO and is replaced by John R. Hall.
1982: Scurlock Oil Company is acquired; Ashland Services Company is formed.
1994: Ashland's Valvoline division purchases Zerex; Ashland acquires Eurobase (Italy) and ACT Inc. (Pennsylvania).
1995: Company name is changed to Ashland Oil, Inc.
1996: Paul W. Chellgren succeeds Hall as chairman and CEO.
1997: Ashland consolidates operations of Arch Mineral and Ashland Coal.
1998: Marathon Oil Company and Ashland Inc. merge to form Marathon Ashland Petroleum LLC.
Name Age Since Current Position
O'Brien, James 56 2002 Chairman of the Board, Chief Executive Officer
Chambers, Lamar 56 2008 Chief Financial Officer, Senior Vice President
Hausrath, David 58 2006 Senior Vice President, General Counsel
Schumann, Anne 50 2009 Vice President, Chief Information and Administrative Services Officer
Heitman, J. William 56 2008 Vice President, Controller
Esler, Susan 49 2006 Vice President - Human Resources and Communications
Mitchell, Samuel 49 2006 Vice President, President - Ashland Consumer Markets
Harris, Theodore 45 2009 VP; President - Global Supply Chain, Environmental, Health, Safety, Performance Materials
Solomon, Walter 51 2005 Vice President, Chief Growth Officer
Craycraft, Robert 41 2008 Vice President, President - Ashland Distribution
Panichella, John 51 2008 Vice President, President - Functional Ingredients
Raymond, Paul 48 2008 Vice President, President - Water Technologies
Perry, Barry 64 2010 Lead Independent Director
Solso, Theodore 64 2010 Independent Director
Hale, Roger 67 2001 Independent Director
Ward, Michael 60 2001 Independent Director
Schaefer, George 65 2003 Independent Director
Ligocki, Kathleen 54 2004 Independent Director
Turner, John 69 2006 Independent Director
Manager, Vada 49 2008 Independent Director
Rohr, Mark 59 2008 Independent Director
Address:
50 E. River Center Boulevard
Covington, Kentucky 41012-0391
U.S.A.
Ashland Inc. (Ashland) business consists of five segments: Ashland Aqualon Functional Ingredients; Ashland Hercules Water Technologies; Ashland Performance Materials; Ashland Consumer Markets (Valvoline), and Ashland Distribution. On November 5, 2010, Ashland signed a definitive agreement with TPG Accolade, LLC to sell all of the assets of its global distribution business conducted by the Ashland Distribution segment. On January 28, 2010, Ashland completed the sale of its refined wood rosin and natural wood terpenes business, formerly known as Pinova, to a company formed by TorQuest Partners. In July 2010, Ashland and Sud-Chemie AG (Sud-Chemie) reached a contractual agreement on the formation of a global joint venture to merge their business activities in the foundry chemicals sector.
ASHLAND AQUALON FUNCTIONAL INGREDIENTS
Ashland Aqualon Functional Ingredients (Functional Ingredients) offers products that are designed to modify the properties of water-based systems. Functional Ingredients’ products are sold ingredients to other manufacturers, where they are used as small-quantity additives to provide functionality, such as thickening and rheology control; water retention; adhesive strength; binding power; film formation; protective colloid, suspending and emulsifying action; foam control; and pH stability. Functional Ingredients consists of businesses, such as regulated industries, coatings additives, construction and energy and specialties solutions. Regulated Industries’ food applications include bakery, beverage, confectionary, dairy, meat, meat analogues and pet food, prepared foods and sauces, dressings and fillings. Personal care applications include cosmetics, hair care, oral care, skin care, wound care and household products. In the pharmaceutical industry, Regulated Industries’ products are used for tablet binding, coatings, modified release and liquid and semi-liquid rheology control. Coatings Additives offers a portfolio of rheology solutions. For manufacturers of paints and other waterborne coatings products, these additives help in controlling product characteristics, such as gloss, spatter, leveling and build. Construction’s product applications include tile and adhesive cements, gypsum plasters, renders, joint compounds, concrete, external insulation systems, masonry and mortar cements and self-leveling compounds. These product applications provide a range of functional properties, including thickening, water retention, sag resistance, workability and consistency, adhesion, stabilization, pumping, rheological properties and strength. Energy and Specialties Solutions offers water-soluble solutions for a variety of applications in the oil and gas industries, including completion and workover fluids, drill-in fluids, oil-well cementing slurries, solvent thickeners and stimulation and hydraulic fracturing. It also provides products to the industrial specialties market, including applications in ceramics, fire-fighting fluids, foundry, industrial cleaners, inks and printing, mining, paint removers, paper and paper coatings, suspension polymerization and welding rods.
ASHLAND HERCULES WATER TECHNOLOGIES
Ashland Hercules Water Technologies (Water Technologies) is a global service business delivering specialty chemical products to a number of industries, including the paper, pulp, chemical, commercial and institutional, food and beverage, mining and municipal industries. Water Technologies is a producer of papermaking chemicals for pulp and paper processing, tissues and towels, packaging, printing and writing papers, and virgin and deinked pulps. Water Technologies offers a range of services, including analytical and applications laboratories, customized program offerings and its StreamLink Specialty Chemicals service model. It consists of business, such as process chemistries, utility water treatment chemistries and functional chemistries. The Process Chemistries business manufactures and sells a range of deposit control agents, defoamers, biocides and other process additives for markets, including pulp and paper manufacturing, food processing, oil refining and chemical processing, general manufacturing and extraction/mining. The Utility Water Treatment Chemistries business provides specialized chemicals and consulting services for the utility water treatment market, which includes boiler water, cooling water, fuel and waste streams. This business also manufactures and sells automated equipment, including feed and control systems, monitoring devices and remote system surveillance. The Functional Chemistries business produces specialized chemicals for the paper industry that impart properties, such as strength, liquid holdout and printability to the final paper or board. Product lines include sizing agents, wet/dry strength additives and specialized products, such as crepe and release additives for tissue manufacturing.
ASHLAND PERFORMANCE MATERIALS
Ashland Performance Materials (Performance Materials) is a manufacturer and supplier of specialty chemicals and customized services to the building and construction, transportation, metal casting, packaging and converting and marine markets. It provides polyester and vinyl ester resins and gelcoats, adhesives and specialty resins, and metal casting consumables and design services. Performance Materials consists of businesses, such as Composites and Adhesives and Casting Solutions. The Composites and Adhesives business manufactures and sells a range of unsaturated polyester and vinyl ester resins, gelcoats and low-profile additives for the reinforced plastics industry. Markets include the transportation, construction, marine and infrastructure end markets. It also markets vinyl ester resins under the DERAKANE and HETRON brand names and unsaturated polyester resins under the AROPOL brand name.
The Composites and Adhesives business manufactures and sells adhesive solutions to the packaging and converting, building and construction, and transportation markets and manufactures and markets specialty coatings and adhesive solutions across multiple industries. Technologies and markets include acrylic polymers for pressure-sensitive adhesives; polyvinyl acetate emulsions; urethane adhesives for flexible packaging applications; aqueous and radiation-curable adhesives and specialty coatings for the printing and converting applications; hot-melt adhesives for various packaging applications; emulsion polymer isocyanate adhesives for structural wood bonding; elastomeric polymer adhesives and butyl rubber roofing tapes for commercial roofing applications; acrylic, polyurethane and epoxy structural adhesives for bonding fiberglass reinforced plastics, composites, thermoplastics and metals in automotive, marine, recreational and industrial applications, and specialty phenolic resins for paper impregnation and friction material bonding. Casting Solutions manufactures and sells metal casting chemicals worldwide, including sand-binding resin systems, refractory coatings, release agents, engineered sand additives and riser sleeves. This business also provides casting process modeling, core-making process modeling and prototyping services.
ASHLAND CONSUMER MARKETS
Ashland Consumer Markets (Consumer Markets) markets packaged automotive lubricants, chemicals, appearance products, antifreeze and filters, with sales in more than 100 countries. Consumer Markets markets various brands of products and services to the private passenger car, light truck and heavy duty markets: Valvoline lubricants; Valvoline Premium Blue commercial lubricants; MaxLife lubricant products for vehicles with 75,000 or more miles; Valvoline Professional Series automotive chemicals; Pyroil automotive chemicals; Eagle One automotive appearance products; Car Brite automotive reconditioning products; MaxLife and Zerex antifreeze; Tectyl industrial products, and Valvoline Instant Oil Change automotive services. Consumer Markets consists of businesses, such as do it yourself (diy), installer channels, valvoline instant oil change (vioc), commercial & industrial (c&i) and valvoline international. The DIY business sells Valvoline and other branded and private label products to consumers who perform their own auto maintenance. These products are sold through retail auto parts stores, such as AutoZone, O’Reilly’s, Advance Auto Parts, mass merchandisers, such as Wal-Mart Stores, Inc., and warehouse distributors and their affiliated jobber stores, such as NAPA and CARQUEST.
The Installer Channels business sells branded products and services to installers (such as car dealers, general repair shops and quick lubes) and to auto auctions through a network of independent distributors and company owned and operated direct market operations. This business also sells to national accounts, such as Goodyear, Monro and Sears. In addition, this business includes distribution to quick lubes branded Valvoline Express Care, which consists of 341 independently owned and operated stores. The Valvoline Instant Oil Change chain provides Consumer Markets with a presence in the installer channels segment of the passenger car and light truck motor oil market. As of September 30, 2010, the 256 company owned and 606 independently owned and operated franchise VIOC centers were operating in 41 states. The C&I business sells branded products and services to on-highway fleets, construction companies and original equipment manufacturers (OEMs) through company owned and operated direct market operations, national accounts and a network of distributors. C&I business also maintain a strategic alliance with Cummins Inc. (Cummins) to distribute heavy duty lubricants to the commercial market, as well as smaller alliances with other global OEMs. Outside of North America, Valvoline International markets Valvoline, Eagle One, Zerex and other branded products through wholly owned affiliates, joint ventures, licensees and independent distributors in more than 100 countries. Valvoline International operates joint ventures with Cummins in Argentina, Brazil, China and India.
ASHLAND DISTRIBUTION
Ashland Distribution (Distribution) distributes chemicals, plastics and composite raw materials in North America and plastics in Europe and China. Distribution also provides environmental services, including hazardous and nonhazardous waste collection, recovery, recycling and disposal, in North America. Deliveries are made in North America through a network of owned, leased and third-party warehouses, as well as rail and tank terminals. Distribution operates businesses, such as chemicals, plastics, composites and environmental services. The Chemicals business distributes specialty and industrial chemicals, additives and solvents to industrial users in North America, as well as some export operations. Markets served include the paint and coatings, personal care, inks, adhesives, polymer, rubber, industrial and institutional compounding, automotive, appliance, oil and gas and paper industries. The Plastics business distributes a range of thermoplastic resins and offers specialized technical services to processors in North America, as well as some export operations. Processors include injection molders, extruders, blow molders and rotational molders. This business provides plastic material transfer and packaging services and less-than-truckload quantities of packaged thermoplastics. It also markets a range of thermoplastics to processors in Europe and the People’s Republic of China. The Composites business distributes polyester thermoset resins, gelcoats, fiberglass and other specialty reinforcements, catalysts and allied products to customers in the cast polymer, corrosion, marine, building and construction, and other fiber-reinforced plastics industries through distribution facilities located throughout North America. The Environmental Services business, working in cooperation with chemical waste service companies, provides customers, including automobile manufacturers, with nationwide hazardous and nonhazardous waste collection, recovery, recycling and disposal services. These services are offered through a North American network of distribution centers, including several storage facilities that have been fully permitted by the United States Environmental Protection Agency (USEPA). Distribution has 63 owned or leased facilities, 68 third-party warehouses, rail terminals and tank terminals and three locations that perform contract packaging activities. Distribution of thermoplastic resins in Europe is conducted in 20 countries through 15 third-party warehouses and one leased warehouse that also operates as a compounding facility.
Ashland was optimistic for 2002 although doubtful that they would match the record results of 2001. Their optimism was based on the strength of refining and marketing operations of MAP. In 2001, MAP launched or completed several initiatives that would add considerably to their future operating income, including retail expansion in the Midwest, a new nationwide network of travel centers, and the startup of a heavy crude oil conversion unit at the Garyville, Lousiana, refinery. In an attempt to consolidate operations, Ashland Distribution closed nine facilities and conducted a "quality of business" review to focus on its most profitable accounts. E-commerce efforts accounted for 15 percent of Ashland Distribution revenues.
Ashland Specialty Chemical remained a worldwide market and technology leader supplying high-performance products and services. A leading European producer of gelcoats and polyester resins was acquired more than doubling the size of Ashland's unsaturated polyester resins business in Europe. Research and development efforts focused on new products and aggressively seeking to build new geographic markets and applications for existing product lines.
Valvoline continued to develop new products, including MaxLife motor oil, the first oil specifically formulated for higher mileage engines, and MaxLife transmission fluids and antifreeze.
Chellgren's vision for the future of Ashland is to provide solutions for customers; provide opportunity for employees to achieve and grow; provide value for shareholders; and provide commitment to shareholders. To achieve these goals, Ashland commits to the "delivery of products and services that are differentiated by our knowledge of customers' needs as well as our technical expertise. We will attract, develop and retain talented and diverse people and provide an environment that encourages innovation, demands accountability and rewards performance. We will achieve high returns on investment that result in high returns for our shareholders." Through a combination of people, technology, and customer focus, Ashland strives to be "The Who In How Things Work."
Principal Subsidiaries:Ashland International Ltd.; Ashland Petroleum Company; APAC, Inc; Ashland Distribution Company; Ashland Specialty Chemical Company; The Valvoline Company; Ashland Services B. V.; Marathon Ashland Petroleum LLC; Speedway SuperAmerica LLC.
Principal Competitors:Honeywell, Inc.; Pennzoil-Quaker State Company; Safety-Kleen Corp.; ATMI, Inc.; American International Petroleum Corporation.
OVERALL
Beta: 2.81
Market Cap (Mil.): $4,906.81
Shares Outstanding (Mil.): 79.04
Annual Dividend: 0.60
Yield (%): 0.97
FINANCIALS
ASH Industry Sector
P/E (TTM): 13.61 10.53 25.53
EPS (TTM): 51.98 -- --
ROI: 4.69 1.00 17.76
ROE: 8.88 3.01 17.73
Statistics:
Public Company
Incorporated: 1924 as Ashland Refining Company
Employees: 25,100 (2001)
Sales: $7.72 billion (2001)
Stock Exchanges: New York
Ticker Symbol: ASH
NAIC: 325211 Plastics Material & Resin Manufacturing; 325199 All Other Basic Organic Chemical Manufacturing; 32411 Petroleum Refineries
Key Dates:
1910: Swiss Drilling Company is founded by J. Fred Miles.
1916: Miles moves his operations to Kentucky.
1918: Swiss Oil Company is incorporated in Lexington, Kentucky.
1923: Paul Blazer is hired to head up Ashland Refining Company.
1930: Ashland acquires Tri-State Refining Company.
1931: Ashland buys Cumberland Pipeline Company.
1936: Swiss Oil and Ashland Refining Company merge to create Ashland Oil and Refining Company; Blazer is elected president and CEO of the new company.
1948: Ashland merges with Cleveland-based Allied Oil Company; acquires Aetna Oil Company, Frontier Oil Company, and Freedom-Valvoline Oil Company.
1956: Ashland acquires R.J. Brown Company.
1957: Blazer retires as CEO. His nephew Rex Blazer takes over the top management spot, with Everett Wells becoming the new president.
1962: Ashland acquires United Carbon Company and Humble Oil & Refining Company.
1965: Orin Atkins becomes CEO.
1966: Ashland acquires Archer Daniels Midland Chemicals Company; Ashland forms a new operating subsidiary, Ashland Chemical Company.
1970: Shareholders approve changing the company's name to Ashland Oil, Inc. Acquisitions include Union Carbide Petroleum Company and Empire State Petroleum; Ashland Oil Canada Limited is formed.
1975: Ashland Coal, Inc. is formed.
1981: Ashland acquires United States Filter Corporation and Integon Corporation; Atkins resigns his position of CEO and is replaced by John R. Hall.
1982: Scurlock Oil Company is acquired; Ashland Services Company is formed.
1994: Ashland's Valvoline division purchases Zerex; Ashland acquires Eurobase (Italy) and ACT Inc. (Pennsylvania).
1995: Company name is changed to Ashland Oil, Inc.
1996: Paul W. Chellgren succeeds Hall as chairman and CEO.
1997: Ashland consolidates operations of Arch Mineral and Ashland Coal.
1998: Marathon Oil Company and Ashland Inc. merge to form Marathon Ashland Petroleum LLC.
Name Age Since Current Position
O'Brien, James 56 2002 Chairman of the Board, Chief Executive Officer
Chambers, Lamar 56 2008 Chief Financial Officer, Senior Vice President
Hausrath, David 58 2006 Senior Vice President, General Counsel
Schumann, Anne 50 2009 Vice President, Chief Information and Administrative Services Officer
Heitman, J. William 56 2008 Vice President, Controller
Esler, Susan 49 2006 Vice President - Human Resources and Communications
Mitchell, Samuel 49 2006 Vice President, President - Ashland Consumer Markets
Harris, Theodore 45 2009 VP; President - Global Supply Chain, Environmental, Health, Safety, Performance Materials
Solomon, Walter 51 2005 Vice President, Chief Growth Officer
Craycraft, Robert 41 2008 Vice President, President - Ashland Distribution
Panichella, John 51 2008 Vice President, President - Functional Ingredients
Raymond, Paul 48 2008 Vice President, President - Water Technologies
Perry, Barry 64 2010 Lead Independent Director
Solso, Theodore 64 2010 Independent Director
Hale, Roger 67 2001 Independent Director
Ward, Michael 60 2001 Independent Director
Schaefer, George 65 2003 Independent Director
Ligocki, Kathleen 54 2004 Independent Director
Turner, John 69 2006 Independent Director
Manager, Vada 49 2008 Independent Director
Rohr, Mark 59 2008 Independent Director
Address:
50 E. River Center Boulevard
Covington, Kentucky 41012-0391
U.S.A.