Chemicals and lubes giant, Ashland, has announced Q2 figures showing slight improvements on 2011, although Valvoline results were mixed as the brand heads to Russia.
Overall Ashland revealed a 2% year-on-year improvement in sales revenues at $2.1bn (adjusted) with operating income up 4% at $221m. The company stated it was pleased with a "solid performance" and its improved cash flow.
Ashland's lubes brand, Valvoline, improved on Q1 with $57m worth of operating income from 40.7m gallons sold in Q2. Although improving this year, volumes were still nine percent lower than the same time in 2011, although sales revenues of $520m were six percent higher than last year and also better than the $475m posted in Q1. Ashland said that "softness in the domestic market" was to blame for the slow start to the year.
However, income is likely to be boosted by Ashland's new deal with Russia's TNK-BP to supply Valvoline to the domestic market. The five year agreement gives TNK-BP distribution rights for quality branded engine oil to the passenger car market which is growing due to the increase in the new vehicle parc.
The deal will put Valvoline on the shelves of some 15,000 retail stores across Russia, while TNK-BP - jointly owned by BP and the AAR consortium - will gain customer service and support expertise along with the lubes product range.