Focus on the future: Ashland Distribution strives to improve performance. (Spotlight on Ashland Distribution).

Adhesives Age, January, 2003

WHEN ASHLAND CHEMICAL Co. was broken in two to form Ashland Distribution and Ashland Specialty Chemicals in 1999, revenues from the distribution division were estimated at $2.9 billion. According to Ashland Inc.'s 2002 annual report, that figure reached $3.2 billion in 2000. In 2001 and 2002, however, the distributor's performance was less than stellar, with revenues of approximately $2.8 billion and $2.5 billion, respectively.

According to Ashland Inc.'s annual report, this downward trend in revenues reflects "weak markers and internal execution problems related to the implementation of an enterprise resource planning system." The report went on to note that, "of all of Ashland's businesses, Ashland Distribution is the most sensitive to industrial output, which...