Ashland Inc. (NYSE: ASH) has reported its financial results for the third quarter of fiscal year 2024, which concluded on June 30, 2024. The global leader in specialty chemicals and additives posted sales of $544 million, slightly down from $546 million in the same period last year. The decline in sales was attributed to lower volumes in the Life Sciences segment and the impact of portfolio optimization initiatives.
Net income, including discontinued operations, was $6 million, or $0.12 per diluted share, compared to $50 million or $0.95 per diluted share in the prior-year quarter. Income from continuing operations was $31 million, or $0.60 per diluted share, down from $42 million or $0.79 per diluted share. Adjusted income from continuing operations, excluding intangibles amortization, increased to $75 million, or $1.49 per diluted share, from $65 million, or $1.23 per diluted share in the previous year. Adjusted EBITDA rose to $139 million, reflecting a 5% increase from $133 million in the prior-year quarter.
The company reported cash flows from operating activities of $128 million, a decrease from $137 million in the prior-year quarter. Ongoing free cash flow increased to $112 million from $97 million. Ashland repurchased 1.3 million shares during the quarter and has $770 million remaining under its existing share repurchase authorization. "Ashland delivered another quarter of sequential year-on-year momentum for sales and Adjusted EBITDA," said Guillermo Novo, Chairman and CEO of Ashland. Novo highlighted progress in several key areas, including a strong recovery in Personal Care and sustained margin momentum in Specialty Additives.
Sales for the Life Sciences segment were $195 million, an 11% decrease from the prior-year quarter. This decline was primarily due to weaker demand for vinyl pyrrolidone and derivatives (VP&D), as well as the exit of low-margin VP&D nutrition business. Adjusted EBITDA for Life Sciences fell to $59 million from $72 million.
The Personal Care segment saw a 20% increase in sales to $175 million, driven by higher volumes, particularly in skin care and hair care. Adjusted EBITDA rose to $51 million from $35 million.
Sales in the Specialty Additives segment declined by 1% to $150 million. Despite higher volumes in coatings and performance specialties, lower pricing in Asia and the impact of the CMC and MC portfolio optimization initiatives led to this decrease. Adjusted EBITDA improved to $38 million from $29 million.
Sales in the Intermediates segment dropped 16% to $36 million, with adjusted EBITDA falling to $9 million from $16 million. The Unallocated & Other expense rose to $151 million, primarily due to a non-cash impairment on the nutraceuticals business and higher environmental reserve adjustments.
Ashland anticipates sales in the range of $530 million to $540 million for the fiscal fourth quarter and adjusted EBITDA between $130 million and $140 million. For the full fiscal year, the company expects sales of approximately $2.1 billion and adjusted EBITDA between $465 million and $475 million. The company is also focused on portfolio optimization and strategic investments to enhance its long-term growth prospects. "We are confident in the quality of our business and its long-term prospects," concluded Novo.
Data source: https://investor.ashland.com/node/35526/pdf
