UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 333-211719 (a Delaware corporation) I.R.S. No. 81-2587835 8145 Blazer Drive Wilmington, Delaware 19808 Telephone Number (302) 995-300 ...

Ashland (ASH) came out with quarterly earnings of $1.49 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.36%. A quarter ago, it was expected that this chemical company would post earnings of $1.19 per share when it actually produced earnings of $1.27, delivering a surprise of 6.72%.Over the last four quarters, the company ha ...

Financial 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].

Investors might want to bet on Ashland (ASH) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a cha ...

Core Insights - Ashland (ASH) and Novozymes A/S (NVZMY) are both considered for investment in the Chemical - Specialty sector, with a focus on identifying which stock offers better value opportunities [1] Valuation Metrics - ASH has a forward P/E ratio of 21.12, while NVZMY has a higher forward P/E of 33.83 [2] - ASH's PEG ratio is 0.93, indicating a more favorable valuation compared to NVZMY's PEG ratio of 3.47 [2] - ASH's P/B ratio stands at 1.54, significantly lower than NVZMY's P/B ratio of 13.80 [2] Value Grades - ASH has received a Value grade of B, whereas NVZMY has been assigned a Value grade of F, indicating ASH is currently viewed as the superior value option [3]

Core Viewpoint - Investors in the Chemical - Specialty sector should consider Ashland (ASH) and Novozymes A/S (NVZMY) as potential value stocks, with ASH currently presenting a more favorable valuation based on key metrics [1][3]. Valuation Metrics - ASH has a forward P/E ratio of 20.82, while NVZMY has a significantly higher forward P/E of 33.53 [2]. - ASH's PEG ratio is 0.91, indicating a more attractive valuation relative to its expected earnings growth, compared to NVZMY's PEG ratio of 3.44 [2]. - ASH's P/B ratio stands at 1.52, which is considerably lower than NVZMY's P/B ratio of 13.68, suggesting ASH is undervalued relative to its book value [3]. Investment Outlook - Both ASH and NVZMY have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [1]. - ASH holds a Value grade of B, while NVZMY has a Value grade of F, reinforcing ASH as the superior value option based on current valuation figures [3].

WILMINGTON, Del., July 17, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE: ASH) today announced plans to issue its third-quarter earnings release at approximately 5 p.m. ET on Tuesday, August 6, 2024. The company's live webcast with securities analysts will include an executive summary and detailed remarks. The live webcast will take place at 10 a.m. ET on Wednesday, August 7. Simultaneously, the company will post a slide presentation in the Investor Relations section of its website at http://investor.ashland. ...

WILMINGTON, Del., June 18, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE:ASH) has strengthened its performance  towards environmental, social and governance (ESG) practices and a more just and equitable society through  a relationship with the Fair Wage Network (FWN) to understand living wages for the company’s 3,800 global employees. Following a rigorous and thorough process where compensation data for all employees was reviewed on an anonymous basis and steps were taken to remediate any pay gaps, Ashland ac ...

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].