Ashland Global Sees Rise In Q3 Sales, Earnings Above View; Ups FY22 Outlook

Economy

Ashland Global Holdings Inc. (ASH), a chemical company, said in preliminary report that it expects a rise in sales for the third quarter, amidst continued strong demand from resilient end-markets.

However, despite firm demand, it projects a decline in its earnings for the period, but above the Street view.

In addition, for the fiscal 2022, the Group has raised its sales and adjusted EBITDA outlook.

For the three-month period, Ashland expects its income from continuing operations to be at around $51 million or $0.93 per share, less than $87 million or $1.40 per share of previous year.

Adjusted earnings from continuing operations excluding intangibles amortization are expected to be approximately at $104 million or $1.89 per share, compared with $75 million or $1.22 per share, reported a year ago.

Ashland’s adjusted EBITDA is expected to be at around $174 million, up almost 35 percent versus 2021.

The chemical firm’s sales are estimated at $644 million for the quarter, higher than last year’s $637 million.

Eight analysts, on average, polled by Thomson-Reuters are estimating the firm to report its June-quarter earnings of $1.39 a share on sales of $598.75 million. Analysts’ estimates typically exclude one-time items.

For the full year, the company now expects its adjusted EBITDA to be in the range of $580 million – $590 million, an increase of 4 percent from its previous expectations.

Ashland now also projects full year sales of $2.35 billion to $2.40 billion, an increase of around 3 percent when compared to its previous outlook. Analysts, on average, expect the firm to post its full year sales at $2.35 billion.

Guillermo Novo, CEO of Ashland, said: “…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.”

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