WILMINGTON, DE — Ashland Inc. (NYSE: ASH) announced its third quarter fiscal year 2024 financial results, ending June 30, 2024. The company, which specializes in additives and specialty ingredients, reported sales of $544 million.
Net income, including discontinued operations, was $6 million, or $0.12 per diluted share. Income from continuing operations was $31 million, or $0.60 per diluted share. Adjusted income from continuing operations, excluding intangibles amortization expense, was $75 million, or $1.49 per diluted share. Adjusted EBITDA was $139 million, up 5% from the prior-year quarter.
“Ashland delivered another quarter of sequential year-on-year momentum for sales and Adjusted EBITDA,” said Guillermo Novo, chair and CEO. “While improving sales trends continued during most of the quarter, June was weaker-than-expected in Life Sciences and, to a lesser extent, Specialty Additives.”
Sales for Personal Care increased by 20% to $175 million. Specialty Additives sales were $150 million, down 1% from last year. Life Sciences sales dropped 11% to $195 million.
Ashland repurchased 1.3 million shares in the third quarter and has $770 million remaining under its share repurchase authorization. The company reported cash flows from operating activities of $128 million and ongoing free cash flow of $112 million.
Financial Outlook
Ashland expects fourth-quarter sales to range between $530 million and $540 million. Adjusted EBITDA is projected to be between $130 million and $140 million. For the full fiscal year, sales are expected to be around $2.1 billion, with adjusted EBITDA between $465 million and $475 million.
Buy, Sell, or Hold?
Ashland shows strong cash flow and disciplined capital allocation, highlighted by its share repurchase activities. However, softer demand in June raises some concerns. Given the balanced outlook and ongoing portfolio optimization, Ashland is a Hold. Investors should watch for future performance in Personal Care and Specialty Additives segments.
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