Ashland Inc. (NYSE: ASH) is a diversified chemical company comprised of four major divisions: Ashland Distribution, Ashland Performance Materials, Valvoline, and Ashland Water Technologies. ^[1] Ashland Distribution distributes chemicals and plastics in North America and Europe.^[2] The Performance Materials segment makes materials that are used in the construction and automotive industry. ^[3] Valvoline markets brand name lubricants for automobile engines.^[4] Ashland Water Technologies is a supplier of chemicals used in water treatment and mining. ^[5]

Rising oil prices have decreased profit margins for Valvoline, because many of its lubricants use oil as a major input. ^[6] They also negatively effect Ashland Distribution by increasing transportation costs. ^[7] Additionally, downturns in the automotive and housing industries affect Ashland because they account for the majority of Performance Material’s revenue.

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