Valvoline continued its strong performance as improved mix and lower raw-material costs led to improved profitability and margins for the first quarter of its new fiscal year. EBITDA rose 11 percent, to $92 million, and EBITDA as a percent of sales was 18.7 percent, an increase of 160 basis points versus the prior year. Overall sales rose 1 percent, to $492 million, despite lower international sales resulting from distributor destocking and general softness in the heavy-duty market.

Valvoline's performance was driven by continued strength across the Do-It-For-Me (DIFM) channel and Valvoline Instant Oil Change, as well as a number of successful promotions in the Do-It-Yourself (DIY) channel. Within the DIFM channel, Valvoline's non-captive installer line of business posted the second consecutive quarter of mid-single-digit percentage sales growth over the prior year. Valvoline Instant Oil Change logged nearly 5 percent growth in same-store sales at company-owned sites. The quick-lube brand also added 29 stores across the network over the past year, contributing to a 7 percent overall increase in oil changes compared to a year ago. Volume within Valvoline's international channel declined 3 percent and sales fell 8 percent from the prior year. Adjusting for currency, international sales were down 2 percent. Overall mix continued to improve, with premium-branded lubricant sales volume increasing to 38.4 percent, a 260-basis-point increase from prior year.

Parent company, Ashland, reported first quarter earnings from continuing operations of $40 million on sales of nearly $1.4 billion. Excluding key items, Ashland's adjusted income from continuing operations was $102 million. For the year-ago quarter, Ashland reported income from continuing operations of $88 million on sales of more than $1.4 billion. There were no key items in the year-ago quarter.