SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549


                                    FORM 8-K

                                 CURRENT REPORT


                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


       Date of report (Date of earliest event reported): October 21, 2003


                                  ASHLAND INC.
             (Exact name of registrant as specified in its charter)


                                    Kentucky
                 (State or other jurisdiction of incorporation)

               1-2918                                      61-0122250
     (Commission File Number)                         (I.R.S. Employer
                                                      Identification No.)


   50 E. RiverCenter Boulevard, Covington, Kentucky         41012-0391
       (Address of principal executive offices)             (Zip Code)


  P.O.Box 391, Covington, Kentucky                          41012-0391
        (Mailing Address)                                   (Zip Code)



        Registrant's telephone number, including area code (859) 815-3333




Item 7. Financial Statements and Exhibits - ------ --------------------------------- (c) Exhibits 99.1 Press Release dated October 21, 2003 Item 9. Regulation FD Disclosure - ------- ------------------------ (Information Furnished Under Item 12 - Results of Operations and Financial Condition) On October 21, 2003, Ashland Inc. reported its fourth quarter and fiscal 2003 results, which are discussed in more detail in the press release attached hereto as Exhibit 99.1. The information, furnished under "Item 9. Regulation FD Disclosure," is intended to be furnished under "Item 12. Results of Operations and Financial Condition," in accordance with Securities and Exchange Commission Release No. 33-8216. -2-

SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ASHLAND INC. ---------------------------------------- (Registrant) Date: October 21, 2003 /s/ David L. Hausrath ---------------------------------------- Name: David L. Hausrath Title: Vice President and General Counsel -3-

EXHIBIT INDEX 99.1 Press Release dated October 21, 2003 -4-

                                                              Exhibit 99.1


                           FOR FURTHER INFORMATION:

                           Media Relations:     Investor Relations:
                           Jim Vitak            Bill Henderson
                           (859)815-5106        (859)815-4454
                           jvitak@ashland.com   wehenderson@ashland.com

                           FOR IMMEDIATE RELEASE
                           October 21, 2003


ASHLAND INC. REPORTS FOURTH QUARTER
AND FISCAL 2003 EARNINGS

Covington, Ky. - The following was issued today by Ashland Inc. (NYSE:ASH):

                        SEPTEMBER 2003 QUARTER HIGHLIGHTS

     Record  quarter  from  Valvoline  and  improvement  in both  petroleum
refining  and  chemical  distribution  more  than  offset  loss  from  road
construction and decline from specialty chemical.



                                                      Quarter ended September 30                 Year ended September 30
In millions except earnings per share                     2003              2002                    2003            2002
- ------------------------------------------------------------------------------------------------------------------------
                                                                                                      
Operating income                                        $  119             $  96                  $  266          $  321
Income from continuing operations                       $   61             $  41                  $   94          $  115
Net income                                              $  137             $  47                  $   75          $  117

Diluted earnings per share:
      Income from continuing operations                 $  .89             $ .59                  $ 1.37          $ 1.64
      Net income                                        $ 1.99             $ .68                  $ 1.10          $ 1.67

     Ashland Inc.  today  reported net income of $137  million,  or $1.99 a
share,  for the  quarter  ended  September  30, the  fourth  quarter of the
company's 2003 fiscal year.  These results  included an $81 million gain on
the  sale of its  Electronic  Chemicals  group.  Net  income  for the  2002
September  quarter  was $47  million,  or 68  cents a  share.  Income  from
continuing  operations for the 2003 quarter amounted to $61 million,  or 89
cents a share,  compared  to $41  million,  or 59  cents a  share,  for the
quarter a year ago. In the quarter  just ended,  the company  recorded  $22
million in before-tax  charges for severance and other costs related to

                                  -more-

the company's Top-Quartile Cost Structure (TQCS) program. Under this initiative, actions are underway that are expected to reduce selling, general and administrative expenses by an annual rate of approximately $75 million by the end of fiscal 2004. For the year ended September 30, 2003, Ashland reported net income of $75 million, or $1.10 a share, compared to net income of $117 million, or $1.67 a share last year. Ashland's income from continuing operations for 2003 totaled $94 million, or $1.37 a share, compared to $115 million, or $1.64 a share, for 2002. "Income from continuing operations increased 49 percent for the quarter, reflecting a record September quarter from Valvoline, a substantial rebound by Ashland Distribution and good results from our refining and marketing investment," said Ashland Chairman and Chief Executive Officer James J. O'Brien. "We were disappointed, however, by an operating loss from APAC and the drop in operating income from Ashland Specialty Chemical." O'Brien said several factors contributed to APAC's $3 million operating loss. Reserves of $12 million were established for job losses related to the Virginia Department of Transportation (VDOT) Route 288 project, reflecting weather-related cost increases and construction delays. Also in the quarter, APAC recorded a $9 million pre-tax impairment charge for goodwill associated with non-strategic assets identified for sale. Although revenues for the quarter nearly equaled those of a year ago, persistent poor weather created inefficiencies throughout the construction season, which led to much lower than expected margins. In addition, liquid asphalt costs increased by about 8 percent, compared to the 2002 quarter, while fuel costs for asphalt plants and the equipment fleet rose 25 percent and 9 percent, respectively. "While we are quite disappointed with APAC's 2003 performance, we continue to believe that APAC will benefit from its strong backlog of $1.7 billion and an improved cost structure in fiscal 2004," O'Brien said. Operating income from Ashland Specialty Chemical declined to $10 million for the quarter compared to $19 million a year ago. Several factors contributed to the decline, including a $5 million charge related to Ashland's TQCS program. In addition, prior increases in raw material costs were not completely recovered in the marketplace. "Although the quarter's performance was disappointing, most of the decline was due to charges and expenses related to initiatives that should enable us to reduce costs and improve -more- performance going forward," O'Brien said. "Additionally, Ashland Specialty Chemical has created a new solutions process to advance how it commercializes new technology. We remain optimistic about the future of this division." Ashland Distribution significantly improved its performance. Operating income for the quarter reached $5 million after a $5 million charge for staff reductions related to Ashland's TQCS program. These results compared to an operating loss of $7 million in the quarter a year ago. Operating income for the year climbed to $32 million, versus only $1 million for fiscal 2002, reflecting an 11 percent increase in sales revenues which includes a 5 percent increase in volumes. "Ashland Distribution's improvements were achieved despite a sluggish industrial economy, which demonstrates the business's success in improving service and reducing costs," O'Brien said. "We're pleased with the progress made this year. While sales and profits have not yet met our long-term expectations, the team is clearly doing the work required to improve service to customers, increase sales and grow earnings." Valvoline achieved a record September quarter; operating income rose 29 percent to $31 million, compared to $24 million in the 2002 quarter. Valvoline branded lubricant sales volumes improved on the strength of an 11 percent increase in premium product sales volumes and an increase in distributor sales volumes in the "do-it-for-me" market. Valvoline Instant Oil Change (VIOC) had a record quarter due to a 16 percent increase in revenues from transmission, cooling, fuel and air quality system services and an 11 percent increase in premium lubricant oil changes. In addition, Valvoline International had a record quarter in part due to better volumes in key markets and strengthening foreign currencies. "Valvoline's record year demonstrates the division's ability to perform at a consistently high level. Operating income for the year grew by 13 percent, as Valvoline continued to benefit from its highly successful strategy to emphasize premium products and services," O'Brien said. "Valvoline is our best example of the type of performance we are working to create in all of our businesses." -more-

Results from refining and marketing improved significantly compared to the previous year. Operating income in the quarter jumped to $118 million compared to $33 million a year ago. Strong results from Marathon Ashland Petroleum were due to improved demand in the Midwest and strong refining margins and record refinery throughput. For the fiscal year, operating income from refining and marketing rose by 84 percent over 2002 to $263 million. Including $11 million in TQCS charges, corporate costs were $42 million in the quarter versus $31 million for the prior year. "In summary, we moved forward decisively on a number of fronts in fiscal 2003," O'Brien said. "As a result, we are entering the new fiscal year with a sharper business focus, a well-defined strategy and in stronger competitive position. While we recognize there is more yet to be done, we believe the progress we've made this year has set Ashland on the right course to deliver greater future value to our shareholders and to reach our goal of consistently outperforming our competitors." Today at 5:00 p.m. (EDT), Ashland will provide a live audio webcast of its year-end meeting with securities analysts. The webcast will be accessible through Ashland's Investor Relations website, www.ashland.com/investors. Interested parties may also dial (800) 362-0571 for a listen-only broadcast. Following the live event, an archived version of the webcast will be available on the Ashland website for 12 months. Minimum requirements to listen to the webcast include the free Windows MediaPlayer software and a 28.8 Kbps connection to the Internet. Ashland Inc. (NYSE:ASH) is a Fortune 500 company providing products, services, and customer solutions throughout the world. Our businesses include road construction, specialty chemicals, lubricants, car-care products, chemical and plastics distribution and transportation fuels. Through the dedication of our employees, we are "The Who In How Things Work(TM)." Find us at www.ashland.com. - 0 - THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS, WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, WITH RESPECT TO ASHLAND'S OPERATING PERFORMANCE AND EARNINGS. THESE ESTIMATES ARE BASED UPON A NUMBER OF ASSUMPTIONS, INCLUDING THOSE MENTIONED WITHIN THIS NEWS RELEASE. SUCH ESTIMATES ARE ALSO BASED UPON INTERNAL FORECASTS AND ANALYSES OF CURRENT AND FUTURE MARKET CONDITIONS AND TRENDS, MANAGEMENT PLANS AND STRATEGIES, WEATHER, OPERATING EFFICIENCIES AND ECONOMIC CONDITIONS, SUCH AS PRICES, SUPPLY AND DEMAND, COST OF RAW MATERIALS, AND LEGAL PROCEEDINGS AND CLAIMS (INCLUDING ENVIRONMENTAL AND ASBESTOS MATTERS). ALTHOUGH ASHLAND BELIEVES ITS EXPECTATIONS ARE BASED ON REASONABLE ASSUMPTIONS, IT CANNOT ASSURE THE EXPECTATIONS REFLECTED HEREIN WILL BE ACHIEVED. THIS FORWARD-LOOKING INFORMATION MAY PROVE TO BE INACCURATE AND ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IF ONE OR MORE OF THE UNDERLYING ASSUMPTIONS OR EXPECTATIONS PROVES TO BE INACCURATE OR IS UNREALIZED OR IF OTHER UNEXPECTED CONDITIONS OR EVENTS OCCUR. OTHER FACTORS AND RISKS AFFECTING ASHLAND ARE CONTAINED IN ASHLAND'S FORM 10-K FOR THE FISCAL YEAR ENDED SEPT. 30, 2002, AS AMENDED. ASHLAND UNDERTAKES NO OBLIGATION TO SUBSEQUENTLY UPDATE OR REVISE THE FORWARD-LOOKING STATEMENTS MADE IN THIS NEWS RELEASE TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS RELEASE. (TM) Trademark, Ashland Inc.

Ashland Inc. and Consolidated Subsidiaries Page 1 STATEMENTS OF CONSOLIDATED INCOME (In millions except per share data - unaudited) Three months ended Year ended September 30 September 30 ----------------------- ------------------------ 2003 2002 2003 2002 ---------- ---------- ----------- ---------- REVENUES Sales and operating revenues $ 2,130 $ 2,033 $ 7,518 $ 7,348 Equity income 133 40 301 181 Other income 2 12 46 47 ---------- ---------- ----------- ---------- 2,265 2,085 7,865 7,576 COSTS AND EXPENSES Cost of sales and operating expenses 1,708 1,586 6,005 5,756 Selling, general and administrative expenses 386 348 1,390 1,291 Depreciation, depletion and amortization 52 55 204 208 ---------- ---------- ----------- ---------- 2,146 1,989 7,599 7,255 ---------- ---------- ----------- ---------- OPERATING INCOME 119 96 266 321 Net interest and other financial costs (32) (34) (128) (138) ---------- ---------- ----------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 87 62 138 183 Income taxes (26) (21) (44) (68) ---------- ---------- ----------- ---------- INCOME FROM CONTINUING OPERATIONS 61 41 94 115 Results from discontinued operations (net of income taxes) 81 6 (14) 13 ---------- ---------- ----------- ---------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 142 47 80 128 Cumulative effect of accounting changes (net of income taxes) (5) - (5) (11) ---------- ---------- ----------- ---------- NET INCOME $ 137 $ 47 $ 75 $ 117 ========== ========== =========== ========== DILUTED EARNINGS PER SHARE Income from continuing operations $ .89 $ .59 $ 1.37 $ 1.64 Results from discontinued operations 1.18 .09 (.19) .19 Cumulative effect of accounting changes (.08) - (.08) (.16) ---------- ---------- ----------- ---------- Net income $ 1.99 $ .68 $ 1.10 $ 1.67 ========== ========== =========== ========== AVERAGE COMMON SHARES AND ASSUMED CONVERSIONS 69 69 69 70 SALES AND OPERATING REVENUES APAC $ 785 $ 791 $ 2,400 $ 2,652 Ashland Distribution 723 660 2,804 2,535 Ashland Specialty Chemical 300 285 1,170 1,094 Valvoline 346 319 1,235 1,152 Intersegment sales (24) (22) (91) (85) ---------- ---------- ----------- ---------- $ 2,130 $ 2,033 $ 7,518 $ 7,348 ========== ========== =========== ========== OPERATING INCOME APAC $ (3) $ 58 $ (42) $ 122 Ashland Distribution 5 (7) 32 1 Ashland Specialty Chemical 10 19 31 70 Valvoline 31 24 87 77 Refining and Marketing (a) 118 33 263 143 Corporate (42) (31) (105) (92) ---------- ---------- ----------- ---------- $ 119 $ 96 $ 266 $ 321 ========== ========== =========== ========== - ---------- (a) Includes Ashland's equity income from Marathon Ashland Petroluem LLC (MAP), amortization related to Ashland's excess investment in MAP, and other activities associated with refining and marketing.

Ashland Inc. and Consolidated Subsidiaries Page 2 CONDENSED CONSOLIDATED BALANCE SHEETS (In millions - unaudited) September 30 --------------------------- 2003 2002 ----------- ------------ ASSETS Current assets Cash and cash equivalents $ 223 $ 90 Accounts receivable 1,135 1,056 Inventories 441 456 Deferred income taxes 142 119 Current assets of discontinued operations held for sale - 211 Other current assets 144 139 ----------- ------------ 2,085 2,071 Investments and other assets Investment in Marathon Ashland Petroleum LLC (MAP) 2,448 2,350 Goodwill 523 510 Asbestos insurance receivable (noncurrent portion) 399 171 Other noncurrent assets 340 329 ----------- ------------ 3,710 3,360 Property, plant and equipment Cost 2,959 2,920 Accumulated depreciation, depletion and amortization (1,748) (1,629) ----------- ------------ 1,211 1,291 ----------- ------------ $ 7,006 $ 6,722 =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Debt due within one year $ 102 $ 201 Trade and other payables 1,371 1,256 Current liabilities of discontinued operations held for sale - 39 Income taxes 11 24 ----------- ------------ 1,484 1,520 Noncurrent liabilities Long-term debt (less current portion) 1,512 1,606 Employee benefit obligations 385 509 Deferred income taxes 291 246 Reserves of captive insurance companies 168 166 Asbestos litigation reserve (noncurrent portion) 560 152 Other long-term liabilities and deferred credits 353 350 ----------- ------------ 3,269 3,029 Common stockholders' equity 2,253 2,173 ----------- ------------ $ 7,006 $ 6,722 =========== ============

Ashland Inc. and Consolidated Subsidiaries Page 3 STATEMENTS OF CONSOLIDATED CASH FLOWS (In millions - unaudited) Year ended September 30 -------------------------- 2003 2002 ----------- ----------- CASH FLOWS FROM OPERATIONS Income from continuing operations $ 94 $ 115 Expense (income) not affecting cash Depreciation, depletion and amortization (a) 204 208 Deferred income taxes 49 (121) Equity income from affiliates (301) (181) Distributions from equity affiliates 203 201 Other items 1 - Change in operating assets and liabilities (b) (8) (59) ----------- ----------- 242 163 CASH FLOWS FROM FINANCING Proceeds from issuance of long-term debt - 55 Proceeds from issuance of common stock 2 11 Repayment of long-term debt (216) (140) Repurchase of common stock - (42) Increase (decrease) in short-term debt (10) 10 Dividends paid (75) (76) ----------- ----------- (299) (182) CASH FLOWS FROM INVESTMENT Additions to property, plant and equipment (a) (110) (174) Purchase of operations - net of cash acquired (5) (15) Proceeds from sale of operations 7 - Other - net 11 27 ----------- ----------- (97) (162) ----------- ----------- CASH USED BY CONTINUING OPERATIONS (154) (181) Cash provided by discontinued operations 287 35 ----------- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 133 $ (146) =========== =========== DEPRECIATION, DEPLETION AND AMORTIZATION APAC $ 108 $ 114 Ashland Distribution 19 21 Ashland Specialty Chemical 40 38 Valvoline 26 24 Corporate 11 11 ----------- ----------- $ 204 $ 208 =========== =========== ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT APAC $ 47 $ 107 Ashland Distribution 5 12 Ashland Specialty Chemical 34 27 Valvoline 16 21 Corporate 8 7 ----------- ----------- $ 110 $ 174 =========== =========== - ---------- (a) Excludes amounts related to equity affiliates. Ashland's 38 percent share of MAP's DD&A was $139 million in 2003 and $138 million in 2002, and its share of MAP's capital expenditures was $296 million in 2003 and $199 million in 2002. (b) Excludes changes resulting from operations acquired or sold.

Ashland Inc. and Consolidated Subsidiaries Page 4 OPERATING INFORMATION BY INDUSTRY SEGMENT (Unaudited) Three months ended Year ended September 30 September 30 -------------------------- -------------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- APAC Construction backlog at September 30 (millions) (a) $ 1,745 $ 1,691 Hot-mix asphalt production (million tons) 11.5 11.4 32.5 36.7 Aggregate production (million tons) 9.0 8.8 28.7 31.0 Ready-mix concrete production (million cubic yards) 0.5 0.6 2.0 2.1 ASHLAND DISTRIBUTION (b) Sales per shipping day (millions) $ 11.3 $ 10.3 $ 11.1 $ 10.1 Gross profit as a percent of sales 15.5% 15.7% 15.3% 16.1% ASHLAND SPECIALTY CHEMICAL (b) Sales per shipping day (millions) $ 4.7 $ 4.5 $ 4.6 $ 4.3 Gross profit as a percent of sales 33.6% 36.5% 33.7% 37.0% VALVOLINE Lubricant sales (million gallons) 51.3 53.5 193.5 199.0 Premium lubricants (percent of U.S. branded volumes) 18.6% 16.9% 18.5% 16.1% REFINING AND MARKETING (c) Refinery runs (thousand barrels per day) Crude oil refined 966 931 900 930 Other charge and blend stocks 142 134 133 151 Refined product yields (thousand barrels per day) Gasoline 590 570 554 594 Distillates 290 279 278 293 Asphalt 77 80 71 73 Other 157 140 131 127 ----------- ----------- ----------- ----------- Total 1,114 1,069 1,034 1,087 Refined product sales (thousand barrels per day) (d) 1,445 1,387 1,345 1,321 Refining and wholesale marketing margin (per barrel) (e) $ 3.61 $ 1.63 $ 2.59 $ 1.82 Speedway SuperAmerica (SSA) Retail outlets at September 30 1,791 2,063 Gasoline and distillate sales (million gallons) 815 943 3,423 3,622 Gross margin - gasoline and distillates (per gallon) $ .1375 $ .1063 $ .1191 $ .1040 Merchandise sales (millions) (f) $ 586 $ 645 $ 2,281 $ 2,381 Merchandise margin (as a percent of sales) 24.7% 23.2% 24.5% 24.2% - ---------- (a) Includes APAC's proportionate share of the backlog of unconsolidated joint ventures. (b) Sales are defined as sales and operating revenues. Gross profit is defined as sales and operating revenues, less cost of sales and operating expenses, and depreciation and amortization relative to manufacturing assets. (c) Amounts represent 100% of MAP's operations, in which Ashland owns a 38% interest. (d) Total average daily volume of all refined product sales to MAP's wholesale, branded and retail (SSA) customers. (e) Sales revenue less cost of refinery inputs, purchased products and manufacturing expenses, including depreciation. (f) Effective January 1, 2003, SSA adopted EITF 02-16, "Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor," which requires rebates from vendors to be recorded as reductions to cost of sales. Rebates from vendors recorded in SSA merchandise sales for periods prior to January 1, 2003 have not been restated and included $41 million in the three months ended September 30, 2002; $46 million in the year ended September 30, 2003; and $170 million in the year ended September 30, 2002.