Core Insights - Ashland Inc. has appointed Ashish K. Kulkarni to its Board of Directors, effective May 6, 2024, to enhance its leadership in technology and innovation [1][2][3] - The Board size has increased to 11 members in anticipation of potential retirements, reflecting a proactive approach to governance [2] Group 1: Appointment Details - Ashish K. Kulkarni is the CEO of Kebotix, a startup focused on AI methods for new material commercialization, and has held significant roles in major companies like GAF, Avantor, and Celanese [1][2] - Kulkarni will serve on the Board's Environmental, Health, Safety and Quality, and Compensation Committees, bringing extensive experience in building innovation cultures [1][2] Group 2: Strategic Implications - The addition of Kulkarni is expected to provide unique perspectives that will aid Ashland in executing its strategy for portfolio growth and scalable advancements [3] - The company emphasizes its commitment to innovation and customer loyalty, aiming for increased market share and profitability through enhanced leadership [2][3] Group 3: Company Overview - Ashland Inc. operates as a global additives and specialty ingredients company, serving diverse markets including construction, energy, and pharmaceuticals [4] - The company employs approximately 3,800 professionals dedicated to developing innovative solutions for complex customer challenges across more than 100 countries [4]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Style Scores [1][4] - The Zacks Style Scores categorize stocks into Value, Growth, Momentum, and VGM Scores, helping investors identify stocks with the best potential for market outperformance [2][3] Zacks Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - **Growth Score**: Evaluates a company's financial health and future growth potential based on earnings and sales projections [2] - **Momentum Score**: Assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [2] - **VGM Score**: Combines the three Style Scores to highlight stocks with attractive value, growth, and momentum characteristics [3] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [4] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [5] Company Spotlight: Ashland Global Holdings Inc. (ASH) - Ashland is a leading specialty chemicals company with a diverse portfolio serving various markets, including automotive and pharmaceuticals [6] - ASH currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of A [6] - The stock has seen a 1.1% increase over the past four weeks, and earnings estimates for fiscal 2024 have been revised upwards by four analysts, increasing the consensus estimate by $0.14 to $4.47 per share [6][7]

Company Overview - Ashland (ASH) is currently ranked 2 in the Zacks Sector Rank for Basic Materials, indicating strong performance relative to its peers [1] - The Zacks Rank system highlights stocks with favorable earnings estimates and revisions, with Ashland holding a Zacks Rank of 2 (Buy) [1] Earnings Performance - The Zacks Consensus Estimate for Ashland's full-year earnings has increased by 5.2% in the past quarter, reflecting improved analyst sentiment [2] - Year-to-date, Ashland's stock has gained approximately 13.7%, while the average loss for Basic Materials stocks is 2.5%, showcasing Ashland's outperformance [2] Industry Comparison - Ashland is part of the Chemical - Specialty industry, which has seen an average loss of 21.4% this year, further emphasizing Ashland's strong performance [3] - In contrast, Buenaventura (BVN), another outperforming stock in the Basic Materials sector, belongs to the Mining - Silver industry, which has gained 10.2% this year [3]

Core Insights - Ashland Global Holdings Inc. reported second-quarter fiscal 2024 profits of $120 million or $2.39 per share, an increase from $91 million or $1.67 in the prior-year quarter. Adjusted earnings were $1.27 per share, down from $1.43 year-over-year, but exceeded the Zacks Consensus Estimate of $1.19 [1] - Sales decreased by 4.6% year-over-year to $575 million, slightly surpassing the Zacks Consensus Estimate of $574.2 million, primarily due to softer pricing [1] Segment Highlights - **Life Sciences**: Sales fell 7.5% year-over-year to $222 million, below the Zacks Consensus Estimate of $238.1 million. Nutrition end market volumes showed modest growth but were lower than the previous year [2] - **Personal Care**: Sales increased by 1.2% year-over-year to $169 million, exceeding the Zacks Consensus Estimate of $159.3 million, driven by higher volumes in skin care, oral care, and hair care [2] - **Specialty Additives**: Sales declined 2.5% year-over-year to $157 million, surpassing the Zacks Consensus Estimate of $149.5 million, with higher volumes in coatings offset by lower pricing [3] - **Intermediates**: Sales dropped 21.5% year-over-year to $40 million, slightly beating the consensus estimate of $39 million, primarily due to lower prices [3] Financials - Cash and cash equivalents were $439 million at the end of the quarter, a 10% increase from the previous year. Long-term debt remained flat at $1,328 million [4] - Operating cash flows were $54 million, a slight decrease from $56 million in the prior-year quarter [4] Outlook - For the fiscal third quarter, Ashland expects sales to be in the range of $560-$580 million and adjusted EBITDA to be between $138-$148 million. For the full fiscal year, sales are projected to be $2,150-$2,225 million with adjusted EBITDA of $470-$500 million [5] Price Performance - Ashland's shares have increased by 4.7% over the past year, contrasting with a 9.3% decline in the industry [6]

Group 1 - Ashland reported earnings of $1.27 per share on revenue of $575 million for its fiscal second quarter, exceeding Wall Street's earnings estimate of $1.14 per share [2] - Revenue decreased by 5% year over year, with positive trends in personal care and specialty additives, while life sciences ingredient volumes were lighter [2] - The company narrowed its full-year revenue guidance to a range of $2.15 billion to $2.23 billion, down from $2.15 billion to $2.25 billion [2] Group 2 - Ashland forecasts flat to slightly increased demand in 2024, indicating signs of normalization after pandemic-related disruptions [3] - The company is focusing on higher-end products and has announced the closure of a production unit in Belgium, which will lead to volume declines but is aimed at reducing exposure to lower-margin markets [3] - Ashland's stock is trading at levels similar to three years ago, with potential for growth if end markets normalize as anticipated [3]

Financial Data and Key Metrics Changes - Overall sales declined 5% from the prior quarter to $570 million, with adjusted EBITDA for the quarter decreasing 13% to $126 million, and adjusted EPS down 11% to $1.27 [8][10][18] - Gross profit margin increased 20 basis points to 32.9%, while adjusted EBITDA margin decreased to 21.9% from 24% in the prior year [17][18] - Cash on hand was $439 million, with total available liquidity of roughly $1 billion and net debt at $889 million, representing about 2.2 turns of leverage [22] Business Line Data and Key Metrics Changes - Life Sciences sales declined by 8% to $222 million, with adjusted EBITDA decreasing by 12% to $66 million [19] - Personal Care sales increased by 1% to $169 million, with adjusted EBITDA increasing 29% to $45 million, reflecting improved sales volumes and favorable product mix [20] - Specialty Additives sales declined by 2% to $157 million, with adjusted EBITDA down 21% to $27 million [21] - Intermediates reported sales of $40 million, down 22% compared to the prior year, with adjusted EBITDA of $12 million [22] Market Data and Key Metrics Changes - Personal Care sales turned positive for the first time since Q4 fiscal year '22, with momentum in several end markets and regions [10] - Stronger demand in Personal Care was noted in the APAC region and Europe, while Life Sciences faced challenges due to normalized competitive dynamics [19][20] - Overall sales volume increased 30% sequentially, indicating a recovery trend [10] Company Strategy and Development Direction - The company focuses on executing, globalizing, innovating, and acquiring to drive profitable growth over the coming decade [14][31] - Strategic priorities include improving core businesses through productivity and innovation, and expanding into high-value segments [14][31] - Portfolio optimization activities are expected to generate 200 to 250 basis points of adjusted EBITDA margin expansion by fiscal '25 and '26 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year outlook, citing stable customer demand and early signs of demand normalization [15][29] - The company anticipates high single digits to low double digits revenue growth in the second half of the fiscal year, excluding portfolio optimization actions [29] - Management highlighted the importance of innovation and customer engagement in driving future growth [36][67] Other Important Information - The company has a progressive dividend policy, having grown its annual dividend every year since 2009, compounding at 18% per year [24] - Inventory levels decreased by $180 million compared to the prior year quarter, indicating prudent management of production and inventory [22][24] Q&A Session Summary Question: Thoughts on second half run rate and EBITDA margin growth into 2025 - Management indicated that normalization will be the biggest driver of performance, with expectations for increased revenue and gross profit as demand stabilizes [39] Question: Strategic plan for Avoca business challenges - Management acknowledged ongoing challenges and indicated a focus on assessing opportunities for improvement in the Avoca business line [42] Question: Customer inventory adjustments and restock cycles - Management noted that destocking is over and emphasized the focus on demand normalization rather than immediate restocking [44] Question: Pricing trends in Specialty Additives - Management expects near-term pricing pressure due to competitive dynamics but anticipates normalization trends to maintain margins in the long term [50] Question: Expected volume growth in Q3 - Management expects mid-single-digit volume growth across all businesses in Q3, with significant improvements in production volumes compared to the previous year [54]

Financial Performance - Sales for the three months ended March 31, 2024, were $575 million, a decrease of 4.6% compared to $603 million for the same period in 2023[5]. - Gross profit for the three months ended March 31, 2024, was $161 million, down 18.3% from $197 million in the prior year[5]. - Operating income decreased significantly to $21 million for the three months ended March 31, 2024, compared to $83 million for the same period in 2023, representing a decline of 74.7%[5]. - Net income for the three months ended March 31, 2024, was $120 million, an increase of 31.9% from $91 million in the same period last year[5]. - Basic earnings per share from continuing operations increased to $2.43 for the three months ended March 31, 2024, compared to $1.71 in the prior year, reflecting a growth of 42.3%[5]. - Net income for the six months ended March 31, 2024, was $147 million, an increase from $132 million in the same period of 2023, representing an increase of approximately 11.36%[9]. - Total revenue for the three months ended March 31, 2024, was $222 million, a decrease of 7.5% from $240 million in the same period of 2023[104]. - For the six months ending March 31, 2024, Ashland's total consolidated sales were $1,048 million, a decrease of 7.1% from $1,128 million in the same period of 2023[116]. Assets and Liabilities - Total current assets decreased to $1,427 million as of March 31, 2024, from $1,506 million as of September 30, 2023, a decline of 5.2%[6]. - Total assets remained relatively stable at $5,948 million as of March 31, 2024, compared to $5,939 million as of September 30, 2023[6]. - Long-term debt increased slightly to $1,328 million as of March 31, 2024, from $1,314 million as of September 30, 2023[6]. - Stockholders' equity rose to $3,134 million as of March 31, 2024, compared to $3,097 million as of September 30, 2023, indicating a growth of 1.2%[6]. - Total liabilities at fair value remained stable at $5 million as of both reporting dates[26]. Cash Flow - Total cash flows provided by operating activities from continuing operations amounted to $255 million, significantly up from $27 million in the prior year, indicating a substantial improvement in operational cash generation[9]. - Cash and cash equivalents at the end of the period increased to $439 million from $399 million, reflecting a growth of approximately 10.03%[9]. - The company reported a total cash flow provided by continuing operations of $47 million, a recovery from $(206) million in the same period last year[9]. - Free cash flow for the three months ended March 31, 2024, was $74 million, down from $140 million in the same period of 2023, indicating a decrease of 47.14%[178]. Expenses - Research and development expenses increased to $14 million for the three months ended March 31, 2024, compared to $12 million in the same period last year, reflecting a growth of 16.7%[5]. - Selling, general and administrative expenses increased by $27 million in the current quarter, totaling $106 million, with expenses as a percentage of sales rising to 18.4% from 13.1%[144]. - Year-to-date selling, general and administrative expenses increased by $17 million, totaling $189 million, with expenses as a percentage of sales increasing to 18.0% from 15.2%[145]. - The company incurred $27 million and $49 million in accelerated depreciation for product line optimization activities during the three and six months ended March 31, 2024, respectively[22]. Segment Performance - Life Sciences segment sales for the three months ended March 31, 2024, were $222 million, down from $240 million in the same period of 2023, representing a decline of 7.5%[116]. - North America sales in the Life Sciences segment increased to $73 million for the three months ended March 31, 2024, up from $61 million in the same period of 2023, representing a 19.7% increase[104]. - Personal Care segment sales increased to $169 million in Q1 2024 from $167 million in Q1 2023, showing a slight growth of 1.2%[116]. - Specialty Additives segment sales decreased to $157 million in Q1 2024 from $161 million in Q1 2023, reflecting a decline of 2.5%[116]. - Intermediates segment sales dropped to $40 million in Q1 2024 from $51 million in Q1 2023, a decrease of 21.6%[116]. Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2024, was a benefit of 612%, influenced by a net $102 million from favorable tax discrete items, while the six-month rate was a benefit of 610% with a net $126 million from similar items[60]. - The company expects a decrease in the amount of accrual for uncertain tax positions of between $4 million and $5 million for continuing operations in the next twelve months[63]. Stock and Shareholder Returns - The company repurchased $100 million of common stock during the period, down from $142 million in the previous year, reflecting a reduction in share buyback activity[9]. - Ashland's board authorized a new $1 billion stock repurchase program in June 2023, with $900 million remaining available for repurchase as of March 31, 2024[92]. - Cash dividends declared per common share increased to $0.385 for the first and second quarters of fiscal 2024, compared to $0.335 for the same quarters in fiscal 2023, marking a 14.9% increase[95]. Environmental and Legal Matters - Ashland's asbestos reserve decreased to $263 million at March 31, 2024, from $281 million at September 30, 2023, reflecting a reserve adjustment of $9 million[71]. - The company recorded a total of 42 open asbestos claims at the end of the six months ended March 31, 2024, unchanged from the beginning of the year[70]. - Ashland has identified 53 sites under Superfund or similar laws requiring environmental remediation efforts[83].

Core Insights - Ashland reported revenue of $575 million for the quarter ended March 2024, a decrease of 4.6% year-over-year, with EPS at $1.27 compared to $1.43 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $574.25 million by 0.13%, while the EPS surpassed the consensus estimate of $1.19 by 6.72% [1] Revenue Performance by Segment - Revenue from Intermediates was $40 million, exceeding the average estimate of $38.99 million, but reflecting a year-over-year decline of 21.6% [2] - Life Sciences revenue was reported at $222 million, below the average estimate of $238.11 million, with a year-over-year decrease of 7.5% [2] - Personal Care revenue reached $169 million, surpassing the average estimate of $159.30 million, marking a year-over-year increase of 1.2% [2] - Specialty Additives revenue was $157 million, exceeding the average estimate of $149.50 million, but showing a decline of 2.5% year-over-year [2] - Intersegment sales were reported at -$13 million, better than the estimated -$14.50 million, with an 18.8% decline compared to the previous year [2] Adjusted EBITDA Performance - Adjusted EBITDA for Intermediates was $12 million, exceeding the average estimate of $9.59 million [2] - Personal Care adjusted EBITDA was $45 million, surpassing the average estimate of $35.85 million [2] - Life Sciences adjusted EBITDA was reported at $66 million, slightly above the average estimate of $65.27 million [2] - Unallocated and other adjusted EBITDA was -$45 million, worse than the average estimate of -$23 million [2] - Specialty Additives adjusted EBITDA was $27 million, below the average estimate of $30.50 million [2] Stock Performance - Ashland's shares returned -0.2% over the past month, compared to a -2.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Ashland (ASH) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.72%. A quarter ago, it was expected that this chemical company would post earnings of $0.21 per share when it actually produced earnings of $0.45, delivering a surprise of 114.29%.Over the last four quarters, the company ...

Exhibit 99.1 Ashland reports financial results1for second quarter fiscal 2024; issues outlook for third quarter and full-year fiscal 2024 • Sales of $575 million, down five percent from the prior-year quarter • Net income (including discontinued operations) of $120 million, or $2.39 per diluted share • Income from continuing operations of $121 million, or $2.40 per diluted share • Adjusted income from continuing operations excluding intangibles amortization expense of $64 million, or $1.27 per diluted share ...