Ashland Global Holdings Inc. recently provided an update for its preliminary fiscal 2020 second quarter financial results and its response to the COVID-19 pandemic. According to Ashland, its portfolio performed well during the quarter, despite the global macroeconomic uncertainty brought on by the COVID-19 pandemic. Sales were approximately $610 million, down 9% vs. the prior-year period. The legacy Pharmachem business and previously communicated prior-year business losses in oral care represented approximately half of this decline.
Ashland expects a loss from continuing operations during the second fiscal quarter of approximately $580 million, driven primarily by a goodwill impairment charge following the business unit realignment during the quarter. The net loss (including discontinued operations) is expected to be approximately $587 million. Ashland’s adjusted EBITDA is expected to be approximately $142 million.
“Ashland is well positioned to meet the operating and financial challenges of the global pandemic,” said Guillermo Novo, chairman and CEO. “Our priorities are the health and safety of our employees and the continued supply of products to customers in the critical industries which we serve. From the beginning of the crisis in January, we have implemented our global and regional incident management response plans and teams, which include significant new safety protocols throughout our operations. We are also taking broader actions designed to help further prevent the spread of the COVID-19 virus, including limiting domestic and international travel and implementing work-from-home arrangements, among others.
“We understand how critical our supply reliability is to our customers in the industries they serve, and we are considered an essential supplier by many government agencies around the world. Thanks to the rapid engagement and active management by our teams, our global manufacturing facilities and supply chain capabilities have not been significantly impacted at this point, and we are well positioned to remain a reliable technology and solutions provider to our customers.”
The rapidly evolving pandemic has created significant uncertainty around future demand and supply dynamics across the globe. Ashland reports that the extent and duration of the pandemic’s impact on its business remains uncertain. Visit www.ashland.com for additional details.