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.