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Mar 31, 2023
Ashland Q2 2023 Earnings Report
Ashland's financial results for Q2 2023 were reported, with sales consistent with the prior-year quarter. The company updated its fiscal year 2023 financial outlook and announced the completion of a $200 million share repurchase.
Key Takeaways
Ashland reported sales of $603 million, consistent with the prior-year quarter. Net income was $91 million, and income from continuing operations was $92 million. The company updated its financial outlook for fiscal year 2023, expecting sales in the range of $2.3 billion to $2.4 billion and Adjusted EBITDA in the range of $580 million to $610 million.
Sales of $603 million were consistent with the prior-year quarter.
Net income was $91 million, or $1.67 per diluted share.
Income from continuing operations was $92 million, or $1.68 per diluted share.
Adjusted EBITDA was $145 million, down 11 percent from the prior-year quarter.
Revenue by Segment
Forward Guidance
Ashland updated its financial outlook for fiscal year 2023, expecting sales in the range of $2.3 billion to $2.4 billion and Adjusted EBITDA in the range of $580 million to $610 million, reflecting weaker global demand dynamics and inventory-control actions.
Positive Outlook
- Demand for pharmaceutical products is expected to remain strong through the second half of the fiscal year.
- Pricing and mix-improvement actions position the company well to cover current cost inflation.
- The company remains confident about the future.
- Customers remain resilient.
- Inventory level was consistent with the level at the close of the December quarter.
Challenges Ahead
- Customer de-stocking is continuing.
- Weaker-than-expected results over the past month and in certain end markets have created greater uncertainty regarding the de-stocking dynamics.
- Inventory destocking creates more uncertainty for Personal Care and Specialty Additives end markets.
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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