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
Sales were approximately
Ashland expects income from continuing operations during the third fiscal quarter of approximately
Ashland's Adjusted EBITDA is expected to be approximately
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
In addition, the company now expects Adjusted EBITDA to be in the range of
'Ashland is focused on the visibility we have and the things we can control,' said
'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
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
Financial results are preliminary until Ashland's Form 10-Q is filed with the
Trademark, Ashland or its subsidiaries, registered in various countries.
Contact:
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