Polymerupdate Press Release – Ashland Provides First Quarter Fiscal 2022 Results Update and Maintains Fiscal 2022 Financial Outlook; sets the date for the publication of the results of the first quarter of the 2022 financial year

Ashland Global Holdings Inc. provided an update to preliminary fiscal 2022 first quarter financial results and maintained its outlook for fiscal 2022 results. Additional information regarding fiscal 2022 first quarter results 2022 will be shared on a conference call with securities analysts on Wednesday, February 2, 2022.

Preliminary financial results for the first quarter of fiscal 2022

Ashland’s financial results in the quarter reflect key drivers previously disclosed:

• Continued strong end market demand.
• Ongoing supply chain and labor availability challenges impacting on-time shipments and delivery of orders.
• Delayed impact on the recovery of cost inflation following pricing measures.

Sales were approximately $512 million, up 9% from the prior year period. However, ongoing supply chain challenges and labor shortages have inhibited the company’s ability to meet strong overall customer demand. As a result, approximately $20 million in confirmed orders were delayed to late December, with the majority shipping in early January. Additionally, the company continues to have a large backlog of unconfirmed orders that it cannot commit to supply at this time.

Ashland expects revenue from continuing operations in the fiscal first quarter of approximately $32 million, or approximately $0.55 per diluted share. Adjusted earnings from continuing operations excluding amortization of intangibles are expected to be approximately $51 million, or $0.88 per diluted share. Net income (including discontinued operations) is expected to be approximately $48 million.

Ashland’s adjusted EBITDA is expected to be approximately $106 million, up 5% year-on-year, driven by higher sales, but partially offset by price lag from recovery cost inflation and the government-imposed temporary shutdown of the Nanjing, China plant.

For the annual outlook, the company remains focused on the visibility it has and the things it can control. Ashland expects the current impact of COVID to subside, allowing for continued recovery in end-market demand. The pricing actions the company has taken and continues to take should result in margin normalization. Logistics and transportation expectations remain pragmatic with only marginal improvement expected over the course of the year. The outlook for cost inflation and the need for future pricing action remain the biggest areas of uncertainty. As such, based on current inflation and price expectations, the company’s financial outlook for sales of between $2.25 billion and $2.35 billion and adjusted EBITDA of between $550 and $570 million are unchanged.

“We are encouraged by the strong demand in each of our segments and the disciplined pricing actions demonstrated by our commercial teams,” said Guillermo Novo, president and CEO of Ashland. “The Ashland team is performing well on aspects of the business that are within our control, particularly pricing in a general inflationary environment. The combined impact of delayed orders, continued escalation in cost inflation and the government-mandated temporary closure of our factory in Nanjing, China, is expected to result in earnings for the quarter below our expectations. initials.

“We expect underlying demand to remain strong and continue to take steps to build inventory to alleviate supply chain and shipping issues,” Novo continued. “Pricing actions should cover current cost inflation and we are prepared to take further action to recoup any additional cost inflation. Assuming end market demand remains strong and we do not come under inflationary pressure increased in raw material, freight, energy and other costs, we continue to expect sales and adjusted EBITDA for the year to be within the ranges previously disclosed. costs continue to escalate and we experience further lag as a result of pricing actions, our outlook may need to be updated. I look forward to discussing our results and outlook in more detail during the upcoming conference call with securities analysts.”

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

Webcast of the conference call
Ashland expects to release its first quarter earnings release at approximately 5 p.m. ET on Tuesday, February 1, 2022. The company’s live webcast with securities analysts will include a summary and detailed remarks. The live webcast will take place at 9:00 a.m. ET on Wednesday, February 2, 2022. Simultaneously, the Company will post a slide presentation to the Investor Relations section of its website at http://investor.ashland.com.
Participants in the webcast presentation will include:

• Guillermo Novo, Chairman and Chief Executive Officer.

• Kevin Willis, Senior Vice President and Chief Financial Officer.

• Seth Mrozek, Director of Investor Relations.

The webcast and accompanying materials will be accessible through the Investor Relations section of Ashland’s website at http://investor.ashland.com. Following the live event, an archived version of the webcast and supporting material will be available on Ashland’s website for 12 months.
Use of Non-GAAP Measures
Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges which are highly variable from year to year, the ‘Adjusted EBITDA provides Ashland investors with performance measures that reflect impact to operations from trends in sales, margin and operating expenses, providing insight that is not immediately apparent from net income. The adjustments Ashland makes to derive the non-GAAP measure of Adjusted EBITDA exclude items that could cause short-term fluctuations in net income and that Ashland does not consider to be fundamental attributes or primary drivers of its activity. Adjusted EBITDA provides information on the same basis used by Ashland’s management to assess financial performance on a consolidated, reportable segment basis and to ensure consistency of our financial information, facilitate internal and external comparisons of performance operating history of Ashland and its business units, and to provide continuity to investors for comparability purposes.

Key items, which are set out in Table 2 accompanying this press release, are defined as the financial effects of material transactions which, by their nature or amount, have caused short-term fluctuations in net profit and/or net profit. exploitation, which Ashland does not understand. be deemed to most accurately reflect Ashland’s underlying business performance and trends. In addition, Ashland believes that providing additional information that excludes the financial effects of these items in the financial results will improve an investor’s ability to compare financial performance between reporting periods.

Adjusted diluted earnings per share is a performance measure used by Ashland and is defined by Ashland as profit (loss) from continuing operations, adjusted for identified key items and divided by the number of diluted common shares outstanding. Ashland believes this measure provides investors with additional insight into operating performance by providing earnings and diluted earnings per share measures that exclude the effect of identified key items and tax-specific key items.

Adjusted diluted earnings per share, excluding the measurement of intangible amortization expense, allows Ashland to demonstrate the impact of non-cash intangible amortization expense on earnings per share, in addition to the key items mentioned previously. Ashland’s management believes this presentation is helpful in illustrating the impact of previous acquisitions on results for the applicable period.

About Ashland
Ashland is a consumer-focused, global additive and specialty ingredient company that works responsibly for a better world. Through science and a conscious, proactive mindset for sustainability, we serve customers in the pharmaceutical, personal care, architectural coatings, construction, energy, food, beverages and nutraceuticals. At Ashland, we are approximately 3,800* passionate and tenacious problem solvers who thrive on developing practical, innovative and elegant solutions to complex problems for customers in over 100 countries.

Note: This story has not been edited by the Polymerupdate editorial team and is auto-generated from a syndicated feed.

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