WILMINGTON, Del. - Ashland Global Holdings Inc. (NYSE: ASH) provided an update for preliminary fiscal 2022 third-quarter financial results1 and raised its outlook for fiscal year 2022 results. Additional information regarding third-quarter fiscal 2022 earnings and full-year outlook will be shared during a conference call webcast with securities analysts on Wednesday, July 27, 2022.

Preliminary fiscal 2022 third-quarter financial results

Ashland's financial results during the quarter reflected previously communicated key drivers: Continued strong demand from resilient end-markets; Lower overall exposure to petrochemical-linked raw materials; Disciplined pricing and product mix actions more than offset additional inflation in raw-material, freight and energy costs; Consistent operating performance across the company's global network of production facilities and research and development labs; Strong financial results despite significant foreign currency headwinds resulting from the strengthening U.S. dollar.

Sales were approximately $644 million, up approximately 19 percent versus the prior-year period. Each of the company's reportable segments reported double-digit sales growth compared to the prior year, driven by strong end-market demand, enhanced pricing and improved product mix. Foreign currency negatively impacted sales by approximately $26 million, or five percent.

Ashland expects income from continuing operations during the third fiscal quarter of approximately $51 million, or approximately $0.93 per diluted share. Adjusted earnings from continuing operations excluding intangibles amortization are expected to be approximately $104 million, or $1.89 per diluted share. Net income (including discontinued operations) is expected to be approximately $36 million.

Ashland's Adjusted EBITDA is expected to be approximately $174 million, up approximately 35 percent versus prior year driven primarily by higher sales and expanded operating margins, partially offset by unfavorable foreign currency. Each of the company's reportable segments delivered strong growth in Adjusted EBITDA compared to the prior-year period. Foreign currency negatively impacted Adjusted EBITDA by approximately $14 million, or 11 percent.

The company expects that free cash flow generation will be below prior year during the third fiscal quarter due primarily to an increase in working capital levels globally as previously communicated.

Fiscal year 2022 outlook

Based on current expectations and considering external uncertainties, Ashland now expects sales in the range of $2.35 billion to $2.40 billion for fiscal year 2022, an increase of approximately three percent when compared to previous expectations. This increased outlook assumes a headwind of approximately $30 million from negative foreign currency in the fiscal fourth quarter.

In addition, the company now expects Adjusted EBITDA to be in the range of $580 million to $590 million for fiscal year 2022, an increase of approximately four percent when compared to previous expectations. This increased outlook assumes a headwind of approximately $10 million from negative foreign currency in the fiscal fourth quarter.

'Ashland is focused on the visibility we have and the things we can control,' said Guillermo Novo, chair and chief executive officer, Ashland. 'The war in Ukraine and its potential impact to the global economy, energy cost and availability in Europe impacting customer and supplier operations, the strengthening U.S. dollar, additional pandemic-related lockdowns, and continued cost-inflation pressures are the greatest areas of uncertainty currently. Our expectations regarding logistics and transportation remain pragmatic with little to no improvement expected during the fiscal year. Production levels across all of Ashland's global manufacturing facilities remain strong as we work to meet customer demand as well as rebuild global inventories.'

'We are encouraged by the resilient demand in each of our segments and the operating discipline demonstrated by the entire company,' continued Novo. 'The Ashland team is executing well on the aspects of the business that are within our control.'

'We expect underlying near-term demand to remain strong and continue to take actions to build inventories to mitigate supply-chain and shipping challenges,' continued Novo. 'Pricing and mix-improvement actions should cover current cost inflation and we are ready to take further action to recover any additional cost inflation. While there continues to be a great deal of global uncertainty, due to the resilient nature of our portfolio and the end markets we serve and the disciplined pricing actions enacted by our teams, we now expect sales and Adjusted EBITDA for the full fiscal year to be greater than our previously communicated outlook. I look forward to discussing our fiscal-third quarter financial results and outlook on our upcoming earnings call and webcast,' concluded Novo.

The information in this release is preliminary, based upon information available at the time of this news release, and actual results may differ.

About Ashland

Ashland (NYSE: ASH) is a global, consumer market-focused additives and specialty ingredients company that is responsibly solving for a better world. Through science and a conscious and proactive mindset for sustainability, we serve customers in pharmaceutical, personal care, architectural coatings, construction, energy, food, beverage, and nutraceuticals. At Ashland, we are approximately 3,800 passionate, tenacious solvers who thrive on developing practical, innovative, and elegant solutions to complex problems for customers in more than 100 countries. Visit ashland.com and ashland.com/sustainability to learn more.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Ashland has identified some of these forward-looking statements with words such as 'anticipates,' 'believes,' 'expects,' 'estimates,' 'is likely,' 'predicts,' 'projects,' 'forecasts,' 'objectives,' 'may,' 'will,' 'should,' 'plans' and 'intends' and the negative of these words or other comparable terminology. Ashland may from time to time make forward-looking statements in its annual reports, quarterly reports and other filings with the SEC, news releases and other written and oral communications. These forward-looking statements are based on Ashland's expectations and assumptions, as of the date such statements are made, regarding Ashland's future operating performance, financial condition and expected effects of the COVID-19 pandemic on Ashland's business, operating cash flow and liquidity, as well as the economy and other future events or circumstances. These statements include but may not be limited to Ashland's expectations regarding its ability to drive sales and earnings growth and manage costs.

Ashland's expectations and assumptions include, without limitation, internal forecasts and analyses of current and future market conditions and trends, management plans and strategies, operating efficiencies and economic conditions (such as prices, supply and demand, cost of raw materials, and the ability to recover raw-material cost increases through price increases), and risks and uncertainties associated with the following: the impact of acquisitions and/or divestitures Ashland has made or may make (including the possibility that Ashland may not realize the anticipated benefits from such transactions); Ashland's substantial indebtedness (including the possibility that such indebtedness and related restrictive covenants may adversely affect Ashland's future cash flows, results of operations, financial condition and its ability to repay debt); severe weather, natural disasters, public health crises (including the current COVID-19 pandemic), cyber events and legal proceedings and claims (including product recalls, environmental and asbestos matters); the effects of the COVID-19 pandemic, and the ongoing Ukraine and Russia conflict, on the geographies in which we operate, the end markets we serve and on our supply chain and customers, and without limitation, risks and uncertainties affecting Ashland that are described in Ashland's most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC, which is available on Ashland's website at http://investor.ashland.com or on the SEC's website at http://www.sec.gov. Various risks and uncertainties may cause actual results to differ materially from those stated, projected or implied by any forward-looking statements. The extent and duration of the COVID-19 pandemic on our business and operations is uncertain. Factors that will influence the impact on our business and operations include the duration and extent of the pandemic, the extent of imposed or recommended containment and mitigation measures, and the general economic consequences of the pandemic. Ashland believes its expectations and assumptions are reasonable, but there can be no assurance that the expectations reflected herein will be achieved. Unless legally required, Ashland undertakes no obligation to update any forward-looking statements made in this news release whether as a result of new information, future events or otherwise.

Financial results are preliminary until Ashland's Form 10-Q is filed with the SEC.

Trademark, Ashland or its subsidiaries, registered in various countries.

Contact:

Investor

Seth A. Mrozek

T: +1 (302) 594-5010

E: samrozek@ashland.com

Media

Carolmarie C. Brown

T: +1 (302) 995-3158

E: ccbrown@ashland.com

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