Ashland(US:ASH)2024-08-06 21:10Financial Performance - Sales for Q3 fiscal 2024 were $544 million, a slight decrease from $546 million in the prior-year quarter[2]. - Net income was $6 million, down from $50 million in the prior-year quarter, with income from continuing operations at $31 million, down from $42 million[3]. - Adjusted EBITDA was $139 million, up 5% from $133 million in the prior-year quarter, driven by higher sales and production volumes[3]. - Cash flows from operating activities totaled $128 million, down from $137 million in the prior-year quarter, while ongoing free cash flow was $112 million, up from $97 million[4]. - Year-over-year sales volume growth for Q4 is expected to be mid-single-digit, partially offset by low-single-digit pricing declines[16]. - Ashland reported sales of $544 million for the three months ended June 30, 2024, a slight decrease of 0.4% compared to $546 million for the same period in 2023[35]. - Gross profit for the same period increased to $186 million, up 4.5% from $178 million year-over-year[35]. - Operating loss for the three months ended June 30, 2024, was $(61) million, compared to an operating income of $62 million in the prior year[35]. - Net income for the three months ended June 30, 2024, was $6 million, a significant decrease from $50 million in the same period last year[35]. - Diluted earnings per share from continuing operations decreased to $0.60, down from $0.79 in the prior year[35]. - Adjusted EBITDA for the three months ended June 30, 2024, was $139 million, a slight increase of 4.5% from $133 million in the same period last year[44]. - Free cash flows for the three months ended June 2024 were $99 million, compared to $93 million for the same period in 2023, representing a 6.5% increase[51]. - Adjusted EBITDA for the nine months ended June 2024 was $336 million, compared to $385 million for the same period in 2023, reflecting a decrease of approximately 12.7%[52]. Segment Performance - Life Sciences segment sales were $195 million, down 11% year-over-year, primarily due to weaker demand in vinyl pyrrolidone and derivatives[9]. - Personal Care segment sales increased by 20% to $175 million, driven by higher volumes in skin care and hair care[10]. - Specialty Additives segment sales were $150 million, down 1% from the prior-year quarter, impacted by lower pricing in Asia[11]. - Operating income for the Life Sciences segment was $43 million, down from $49 million in the same period last year[46]. - The Specialty Additives segment reported an operating income of $10 million, an increase from $5 million in the prior year[46]. Cash Flow and Assets - Total cash flows provided by operating activities from continuing operations were $128 million, down from $137 million in the prior year[41]. - Cash and cash equivalents at the end of the period were $399 million, compared to $349 million at the end of the same period last year[41]. - Total assets as of June 30, 2024, were $5,747 million, a decrease from $5,939 million as of September 30, 2023[38]. - Current assets decreased to $1,385 million from $1,506 million in the previous period[38]. - Long-term debt increased slightly to $1,325 million from $1,314 million[38]. Strategic Initiatives - Ashland announced the signing of a definitive agreement to sell its nutraceuticals business, expected to close in Q3 2024[15]. - The company anticipates future growth opportunities and is focused on portfolio optimization activities[29]. - The company expects Q4 sales in the range of $530 million to $540 million and adjusted EBITDA between $130 million and $140 million[17]. - The company expects continued focus on operational efficiency and strategic investments in key growth areas moving forward[44]. Impairments and Adjustments - The company incurred a loss of $99 million related to the impairment of nutraceutical assets[46]. - Key items before tax included a nutraceutical impairment of $99 million for the three months ended June 2024[52]. - Environmental reserve adjustments amounted to $35 million for the three months ended June 2024, compared to $19 million in the same period of 2023[52]. - Total key items after tax for the three months ended June 2024 were $135 million, compared to $8 million in the same period of 2023, indicating a significant increase[55]. - The company reported a nutraceutical impairment of $1.94 for the three months ended June 30, 2024[59]. - Environmental reserve adjustments amounted to $0.69 for the three months ended June 30, 2024, compared to $0.36 in 2023[59]. Earnings Per Share - Diluted EPS from continuing operations for the three months ended June 30, 2024, was $0.60, down from $0.79 in the same period of 2023[59]. - Adjusted diluted EPS from continuing operations (non-GAAP) for the three months ended June 30, 2024, was $1.18, compared to $0.87 in 2023, reflecting a 35.6% increase[59]. - Adjusted diluted EPS from continuing operations excluding amortization expense for the three months ended June 30, 2024, was $1.49, up from $1.23 in 2023[59].