Ashland Provides Fiscal 2021 Financial Update
Due to supply chain and logistics factors, the company is adjusting its earnings outlook.
Ashland Global Holdings Inc. recently provided an update for its preliminary fiscal 2021 financial results. In general, economic recovery in the U.S. and other regions of the world is reportedly driving strong demand for most products in the company’s Life Sciences, Personal Care and Household, Specialty Additives, and Performance Adhesives end markets.
However, Ashland reports that continued challenges in shipping, logistics, and packaging procurement are inhibiting its ability to meet strong overall customer demand. The impact of all these factors is expected to be reflected in the company’s financial results during the fiscal fourth quarter. Specifically, accounting for on-time freight and logistics unreliability over the past few months, Ashland now anticipates fiscal year adjusted EBITDA could be up to $10 million below the low end of the previously communicated range of $570-$590 million.
“We are encouraged by the improving demand in each of our segments,” said Guillermo Novo, chairman and CEO. “As we reported early last quarter, supply-chain and logistics constraints and related costs continue to be an issue. I am pleased with the pricing and operating discipline demonstrated by our business teams to maintain margins in the face of continued challenges. While we are adjusting our outlook for earnings in the fiscal year due to these external factors, I continue to be pleased by the resilience of Ashland’s businesses and our prospects for fiscal year 2022 and beyond.”
During the fiscal fourth quarter, Ashland announced the signing of a definitive agreement to sell its Performance Adhesives business to Arkema for $1.65 billion and the establishment of a renewable annual environmental trust. Beginning with the fiscal fourth quarter, Ashland will report the results of the Performance Adhesives business as discontinued operations and any environmental-related expenses as key items.
Learn more at www.ashland.com.
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