Ashland Global Holdings Inc. recently announced preliminary financial results for the fourth quarter of its 2020 fiscal year, which ended September 30, 2020. Sales were approximately $609 million, flat compared to the prior-year period and 6% greater than the June quarter, driven by continued strength in Consumer Specialties and improving demand within Industrial Specialties. Ashland reports that its financial results during the quarter reflected both strong resiliency in demand and the positive impact of significant self-directed actions to reduce costs and right-size inventory levels.
“Ashland’s financial results in the fourth quarter demonstrate the strength of our specialty materials portfolio and the importance of the actions we are taking internally,” 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 we serve. Our consumer business units performed particularly well as we experienced continued strong demand by our customers in Life Sciences and Personal Care and Household. Furthermore, our industrial business units realized substantial sequential improvement as global industrial demand continued to recover throughout the quarter.
“I am pleased with the progress our team has made driving improvements to our cost structure and balance sheet. The combined benefit of selling, administrative and research and development cost reductions, plus improved product mix and lower raw-material costs in Consumer and Industrial Specialties again yielded year-over-year adjusted EBITDA growth during the quarter. In addition, we exceeded our original target for reduced inventory levels, which contributed to improved cash flow generation. I am confident that our continued internal actions will position us well for the upcoming fiscal year and beyond.”
Sales in the Industrial Specialties segment were $240 million, down 3% from the prior-year quarter, due primarily to lower industrial demand across the globe due to the impact of the COVID-19 pandemic. Sales grew sequentially by 17% compared to the June quarter, as global industrial demand continued to recover.
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