Ashland CEO Jim O'Brien told shareholders at its annual meeting that its improved financial results are better than normal seasonality would indicate and that it had exceeded its cost-cutting goals through December. Cost savings on a continuing annual basis hit $405 million by year end, better than its $400 million target, he said.

The company earned $86 million, or $1.10 per share, in the first quarter of its 2010 fiscal year. That compared with a loss of $119 million, or $1.73 per share, in the same period a year earlier.

"If there is a negative on the horizon, it would be raw materials costs," O'Brien said.

Ashland's goal, he said, is to be in a global No. 1 or strong No. 2 position in each of the markets in which it operates.