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Mar 31, 2022
Ashland Q2 2022 Earnings Report
Ashland's financial results for the second quarter of fiscal year 2022 were announced, showing significant growth in sales and net income.
Key Takeaways
Ashland reported a strong second quarter with sales up 19% year-over-year, driven by disciplined pricing and improved product mix. Net income increased significantly due to a gain on the sale of the Performance Adhesives business. 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 for fiscal year 2022.
Sales increased by 19% compared to the prior-year quarter, reaching $604 million.
Net income was $786 million, which included a $732 million gain from the divestiture of the Performance Adhesives business.
Adjusted EBITDA increased by 41% to $163 million, up from $116 million in the prior-year quarter.
The company maintains its financial outlook for fiscal year 2022, with expected sales between $2.25 billion and $2.35 billion and adjusted EBITDA between $550 million and $570 million.
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.
Positive Outlook
- Underlying demand is expected to remain strong for focused ingredients and additives product portfolio.
- Continue to build inventories to mitigate supply-chain and shipping challenges.
- Pricing and mix-improvement actions should cover current cost inflation.
- The Ashland team is prepared to take further action to recover any additional cost inflation.
- Resilient nature of our portfolio and the end markets we serve.
Challenges Ahead
- War in Ukraine and its potential impact to the global economy.
- Additional pandemic-related lockdowns.
- Energy cost and availability in Europe which could impact customer and supplier operations.
- Foreign currency exchange rates.
- Continued cost-inflation pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income