Valvoline (Ashland Consumer Markets) reported a record operating income for the quarter ended March 31, the second quarter of its 2014 fiscal year. Total lubricant volumes increased 1 percent and operating income increased 3 percent year-over-year. Same-store sales at company-owned Valvoline Instant Oil ChangeSM grew 5 percent year-over-year, driven by increased oil changes per day, average ticket price and total number of oil changes. Lubricant volume from Valvoline's International business rose 9 percent. The Do-It-Yourself (DIY) channel reported continued improvement in product mix, with premium-branded lubricant sales increasing 8 percent. Overall sales increased 2 percent versus prior year to $503 million. Valvoline's EBITDA rose 2 percent, to $90 million, and EBITDA as a percent of sales was 17.9 percent, an increase of 10 basis points versus the year-ago quarter.
Parent company Ashland reported a loss from continuing operations of $61 million on sales of $1.5 billion. These results included five key items that together reduced income from continuing operations by approximately $181 million, net of tax. Among the key items were two charges related to Ashland's global restructuring: a $70 million after-tax, non-cash charge related to pension plan re-measurements, and a $61 million after-tax charge related to cost restructuring efforts. During the quarter Ashland also incurred a $29 million after-tax, non-cash impairment charge related to the recently announced divestiture of the ASK Chemicals joint venture. Excluding the five key items, Ashland's adjusted income from continuing operations was $120 million.