Profits are up at Valvoline. Text from parent company Ashland’s recent announcement of its first-quarter earnings (from the quarter ended Dec. 31, 2007, the 1Q of Ashland’s fiscal year):
“Valvoline delivered record first-quarter operating income of $20.1 million as compared with income of $18.2 million in the year-ago quarter. Sales and operating revenues increased 8 percent over the December 2006 quarter to $380 million, while lubricant volume grew 4 percent. Both the Valvoline Instant Oil Change and Valvoline International units contributed to the record growth. Earnings from Valvoline Instant Oil Change more than doubled, while Valvoline International achieved a record first quarter, with a nearly four-fold increase. Earnings at Valvoline Instant Oil Change were driven by a higher average ticket, representing higher premium oil changes and ancillary services. Premium oil changes now represent more than 50 percent of all oil changes at Valvoline Instant Oil Change centers.”
VIOC has made a major commitment to push synthetic, synthetic blend and high-mileage oil changes, and it looks like it’s paying off.