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Dec 31, 2023
Ashland Q1 2024 Earnings Report
Ashland's financial performance in Q1 2024 reflected a decrease in sales but an increase in operating cash flow, with adjusted EBITDA exceeding expectations.
Key Takeaways
Ashland reported sales of $473 million, a 10% decrease compared to the prior-year quarter. Net income was $26 million, and income from continuing operations was $28 million, or $0.54 per diluted share. Adjusted EBITDA was $70 million. Cash flows provided by operating activities totaled $201 million, and ongoing free cash flow was $66 million.
Sales decreased by 10% year-over-year, totaling $473 million.
Net income reached $26 million, with earnings per share (EPS) at $0.51.
Adjusted EBITDA was $70 million, surpassing the previously issued outlook range.
Cash flows from operating activities significantly increased to $201 million, with ongoing free cash flow at $66 million.
Revenue by Segment
Forward Guidance
Ashland anticipates a partial return to typical margins in the second quarter, driven by increased sales and production volumes, with continued improvement expected throughout the fiscal year. For the fiscal second quarter, the company projects sales between $565 million and $585 million, and adjusted EBITDA in the range of $115 million to $125 million. For the full fiscal year, Ashland anticipates sales of $2.15 billion to $2.25 billion, and adjusted EBITDA between $460 million and $500 million.
Positive Outlook
- Improvement in recent demand trends.
- Disciplined production and inventory levels management.
- Focus on implementing strategic priorities (execute, globalize, innovate, and acquire).
- Portfolio optimization actions, including consolidation of CMC production.
- Expected increase in sales and production volumes in the second quarter.
Challenges Ahead
- Potential risks associated with demand evolution in subsequent months.
- Fluctuations in sales volume and customer end-market demand.
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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