Valvoline last Thursday announced strong financial results for the fiscal first quarter ended December 31, 2016. First-quarter sales were $489 million, up 7% from $456 million in the same period last year. Net income was $72 million, up 11% from $65 million in the same quarter the prior year.

Lubricant sales volumes (gallons, millions) in the three months ended December 31, 2016 vs. 2015 were up in all three core segments: Core North America 24.1, up 2% from 23.6; Quick Lubes 5.3, up 15% from 4.6; and International* 23.0, up 13% from 20.3.
* includes volumes from unconsolidated joint ventures

Core North America operating income declined 4% to $51 million, EBITDA declined 5% to $54 million. Quick lubes operating income grew 26% to $29 million, EBITDA grew 26% to $34 million. International operating income also grew 25% to $20 million, EBITDA increased 24% to $21 million.

Valvoline implemented price increases across all channels during the first quarter of this year in order to offset the base oil cost increases announced in the latter half of fiscal year 2016.

“I am very pleased with our first quarter results, as each of our segments delivered solid year-over-year volume gains. While overall industry trends have been favorable recently, our teams continue to outperform the market,” said Chief Executive Officer Sam Mitchell. “Disciplined margin management and strong performance from our two growth engines, Quick Lubes and International, drove better-than-expected profitability for the quarter. This performance gives us a great start to our first year as a public company.”

“Our strong performance in the first quarter and our ability to manage margins give us confidence that we will deliver full-year results above our prior expectations, and as a result we are raising our full-year EPS guidance,” Mitchell said. “The business has good momentum and we are well positioned for driving faster growth.”

The company expects Ashland to distribute its 83 percent stake in Valvoline following the release of fiscal Q2 earnings by both companies, subject to market conditions and other factors.

For second-quarter fiscal 2017, Valvoline said it anticipates EBITDA from operating segments of $106-$111 million.