Ashland Global Holdings Inc. recently provided an update on preliminary financial results for its fiscal 2021 third quarter and full year. In general, the company reports that the economic recovery in the U.S. and other regions of the world is driving strong demand for most products in its Life Sciences, Personal Care, and Household and Specialty Additives end markets.
According to Ashland, the availability of some raw materials, in addition to shipping, logistics, and packaging challenges, is offsetting the demand and continues to constrain its ability to rebuild global inventories and meet overall customer demand. In addition, supply chain inefficiencies are resulting in higher overall cost as the company works to meet customers’ needs. The impact of all these factors is expected to be reflected in the company’s financial results during the quarter.
“We are encouraged by the improving demand in each of our segments,” said Guillermo Novo, chairman and CEO. “Supply-chain constraints continue to be a challenge for us, our suppliers and our customers, and we anticipate approximately $5 million to $10 million of Adjusted EBITDA pressure in the fiscal third quarter. We expect these factors will stabilize in the fiscal fourth quarter and our Adjusted EBITDA outlook for the fiscal year 2021 of $570 million to $590 million remains unchanged.”
The company’s Performance Adhesives segment, which is under a strategic review, is largely based in the U.S. and continues to be impacted by raw material cost escalation and constrained availability. Ashland reports that this is impacting its ability to satisfy what it calls very strong customer demand. The business continues to take pricing actions to recover from the impact of raw material cost escalation.
Learn more about Ashland at www.ashland.com.