Valvoline (Ashland Consumer Markets) last Monday reported that for the first quarter of its 2014 fiscal year which ended December 31, 2013, total lubricant volumes increased 4 percent, with particular strength in the international business, where volumes rose 10 percent. Company-owned, same-store sales at Valvoline Instant Oil ChangeSM grew 4.7 percent year-over-year, driven by increased oil changes per day, average ticket price and total number of oil changes. The Do-it-Yourself (DIY) business reported continued improvement in product mix, with premium lubricant sales increasing 5 percentage points versus the prior year. Consumer Markets' EBITDA rose 11 percent, to $83 million, and EBITDA as a percent of sales was 17.1 percent, an increase of 150 basis points versus the year-ago quarter. During the quarter, the commercial unit recognized $6 million of income related to a favorable arbitration ruling on a commercial contract. Excluding this, EBITDA margin would have been 15.8 percent.

Parent company, Ashland Inc. reported income from continuing operations of $111 million for the quarter on sales of $1.9 billion. For the year-ago quarter, Ashland reported income from continuing operations of $102 million on sales of $1.9 billion.

Ashland also outlined its plan to restructure the company for sustained growth and improved competitiveness. Following the planned sale of Water Technologies, Ashland will have three commercial units: Specialty Ingredients, Performance Materials and Valvoline.

Within Valvoline, the restructuring plan is focused on reducing costs and improving margins, with a goal of growing EBITDA margin from the mid-teens to the high teens.

Specialty Ingredients will be organized into two businesses: Consumer Specialties and Industrial Specialties. The former will serve the personal care, pharmaceutical, nutrition and agriculture markets. The latter will serve the coatings, construction and energy markets. In addition, adhesives will join the Industrial Specialties group, moving over from Performance Materials.

Performance Materials will comprise three businesses. These will be: 1) Composites, which will serve construction, transportation, marine and other markets; 2) Intermediates and Solvents (I&S), which will move over from Specialty Ingredients and will serve both Ashland's internal butanediol needs as well as the merchant market; and 3) Elastomers, which primarily serves the North American replacement tire market.