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 ...

Sales of $575 million, down five percent from the prior-year quarterNet income (including discontinued operations) of $120 million, or $2.39 per diluted shareIncome from continuing operations of $121 million, or $2.40 per diluted shareAdjusted income from continuing operations excluding intangibles amortization expense of $64 million, or $1.27 per diluted shareAdjusted EBITDA of $126 millionCash flows provided by operating activities of $54 million; ongoing free cash flow2 of $4 million WILMINGTON, Del., Ap ...

WILMINGTON, Del., April 15, 2024 (GLOBE NEWSWIRE) -- Effective today, Ashland Inc. (NYSE:ASH) has announced the appointment of Scott A. Tozier, strategic advisor to the CEO and former executive vice president and chief financial officer of Albemarle Corporation to its Board of Directors. Tozier will serve on the Board's Audit Committee and Environmental, Health, Safety and Quality Committee, each also effective April 15, 2024. Prior to Albemarle, Tozier held several leadership positions at Honeywell Interna ...