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Jun 30, 2022
Ashland Q3 2022 Earnings Report
Ashland reported strong financial results for the third quarter of fiscal year 2022, consistent with the previous update.
Key Takeaways
Ashland's Q3 2022 results showed strong sales growth of 19% year-over-year, driven by disciplined pricing and improved product mix. Adjusted EBITDA increased by 35% compared to the prior-year quarter. The company raised its outlook for sales and Adjusted EBITDA for the full fiscal year 2022.
Sales reached $644 million, a 19% increase from the prior-year quarter.
Net income was $36 million, or $0.65 per diluted share.
Adjusted income from continuing operations excluding intangibles amortization expense was $104 million, or $1.89 per diluted share.
Adjusted EBITDA was $174 million, up 35% from 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
Ashland expects greater sales and Adjusted EBITDA in fiscal year 2022 compared to its previous outlook. Sales are expected to be in the range of $2.35 billion to $2.40 billion, and Adjusted EBITDA is expected to be in the range of $580 million to $590 million.
Positive Outlook
- Underlying near-term demand to remain strong for our 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, both this year and beyond.
- The company has raised its outlook for sales and Adjusted EBITDA in this fiscal year due to the strong results demonstrated through the first three quarters
Challenges Ahead
- The war in Ukraine.
- The strengthening U.S. dollar and broader foreign currency headwinds.
- Energy cost and availability in Europe impacting customer and supplier operations.
- Additional pandemic-related lockdowns.
- Global supply-chain and shipping challenges and continued cost-inflation pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income