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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: September 15, 1995
Date of earliest event reported: September 14, 1995
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.)
1000 Ashland Drive, Russell, Kentucky 41169
(Address of principal executive offices) (Zip Code)
P.O. Box 391, Ashland, Kentucky 41114
(Mailing Address) (Zip Code)
Registrant's telephone number, including area code (606) 329-3333
Total of 6 Pages
Item 5. Other Events
On September 14, 1995, the Registrant issued a press release
announcing that it will adopt a new accounting standard, Financial
Accounting Standards (FAS) Board Statement No. 121, "Accounting For The
Improvement of Long-Lived Assets" which will result in a non-recurring
charge against earnings of approximately $90 million in the September
quarter. The Registrant also announced it will take a charge against
earnings of approximately $40 million in the September quarter for Ashland
Petroleum Company's early retirement program and unrelated reorganization
costs for Valvoline and Arch Mineral. The early retirement program and the
then estimated costs were announced in a Form 8-K filed on May 10, 1995.
Combined, the Registrant will take a one-time pre-tax charge of
approximately $130 million against its fourth quarter earnings. The
after-tax impact is expected to reduce earnings by about $1.25 per share.
The foregoing summary of the attached press release is qualified in
its entirety by the complete text of such document, a copy of which is
attached hereto.
Item 7. Financial Statements and Exhibits
(c) Exhibits
(99) Press Release
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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: September 15, 1995 /s/ Thomas L. Feazell
------------------------------------
Name: Thomas L. Feazell
Title: Senior Vice President,
General Counsel and Secretary
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Exhibit Index
Exhibit No. Page No.
99 Press Release of the Registrant dated 5
September 14, 1995
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EXHIBIT 99
[Ashland Logo]
NEWS FROM ASHLAND
FOR FURTHER INFORMATION:
Stan Lampe
(606) 329-4061
FOR IMMEDIATE RELEASE
September 14, 1995
ASHLAND INC. TO TAKE CHARGE
FOR FAS 121 AND RESTRUCTURING
Ashland, Ky. - Paul W. Chellgren, Ashland Inc. president and chief
operating officer, announced today that the company will adopt a new
accounting standard, Financial Accounting Standards (FAS) Board Statement
No. 121, "Accounting For The Impairment Of Long-Lived Assets," earlier than
its required deadline of Oct. 1, 1996. Based on this new accounting
statement, Ashland is reducing the value of certain properties in its
petroleum, exploration and chemical companies, among others, by taking an
approximately $90 million non-recurring charge in the September 1995
quarter.
In addition, the company has revised its estimate of a previously
announced charge against earnings for Ashland Petroleum's early retirement
program seeking elimination of 250 positions. When first announced on May
10, the pre-tax charge against earnings was expected to be in the range of
$25 million. On Aug. 1, a final total of 321 employees accepted the
enhanced retirement package. Based on this large number, plus $5 million in
unrelated reorganization costs announced for Valvoline and Arch Mineral, a
pre-tax charge of $40 million will be taken.
Combined, Ashland Inc. will take a one-time pre-tax charge of
approximately $130 million against its fourth quarter earnings, which are
scheduled to be released October 23. The after-tax impact is expected to
reduce earnings by about $1.25 per share.
Chellgren also said that the company anticipates consolidated reported
results to be somewhat better than break even for the fiscal year, after
the non-recurring charges. He made these announcements today at the Lehman
Brothers Energy Conference in New York.
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Chellgren told the financial analysts that fiscal year 1995 was a good
year from the perspective of long-term value creation. "Our list of
accomplishments is by no means immaterial. Among the most significant are
the completion of 17 acquisitions at a total investment of about $380
million and a 38 percent increase in capital employed in our energy and
chemical businesses," he stated.
"Looking toward the future, the refining business seems to be in
balance," Chellgren said. "A number of our other business units are larger
and stronger. We have a number of problems behind us. And the outlook for
the U.S. and world economies appears to be positive. Thus, we are
approaching the new fiscal year with confidence and cautious optimism."
Ashland Inc. is a large energy and chemical company engaged in
petroleum refining and marketing; coal; highway construction; and oil and
gas exploration and production. Ashland Chemical is the largest distributor
of chemicals and plastics in North America and a leading supplier of
specialty chemicals worldwide. Ashland's major consumer brands include
Valvoline -R- motor oils, Zerex -R- antifreeze and Pyroil -R- Performance
Products automotive chemicals. As one of the largest independent refiners
in the nation, Ashland is also a leading regional gasoline marketer, with
products marketed under the SuperAmerica -R- and Ashland -R- brand names.
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