Loading...
•
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.
Ashland
Ashland
Ashland Revenue by Segment
Revenue by Segment
Life Sciences Revenue
CapyFin.comPersonal Care Revenue
CapyFin.comSpecialty Additives Revenue
CapyFin.comIntermediates Revenue
CapyFin.com 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.
- Temporary government-mandated shutdown of our facility in Nanjing, China resulted in earnings for the quarter that were below our original expectations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income