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Dec 31, 2021
Ashland Q1 2022 Earnings Report
Ashland's financial results for the first quarter of fiscal year 2022 were reported, showing increased sales but a decrease in net income compared to the prior-year quarter.
Key Takeaways
Ashland reported sales of $512 million, a 9% increase from the prior-year quarter. Net income was $48 million, down from $56 million in the prior-year quarter. The company faced global logistics challenges and cost inflation, which impacted earnings.
Sales increased by 9% year-over-year, reaching $512 million.
Net income decreased to $48 million, compared to $56 million in the prior-year quarter.
Adjusted EBITDA increased to $106 million, up from $101 million in the prior-year quarter.
The company launched eleven new products, a 20% increase compared to the prior-year quarter.
Revenue by Segment
Forward Guidance
For fiscal year 2022, the company continues to expect sales in the range of $2.25 billion to $2.35 billion and adjusted EBITDA in the range of $550 million to $570 million. Our most recent forecast projects full year Adjusted EBITDA below the midpoint of the range.
Positive Outlook
- Underlying demand is expected to remain strong.
- Pricing actions are expected to cover currently-forecasted inflation.
- Demonstrated resilience of portfolio against market conditions.
- Proactive building of inventories in key regions to mitigate supply-chain and shipping challenges.
- Focus on things that can be controlled.
Challenges Ahead
- Shipping challenges are expected to persist.
- Potential headwinds are driven by external risks outside of the company's control.
- Increased costs.
- Additional supply-chain constraints.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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