Ashland Global Holdings Inc. (NYSE: ASH) provided an update on its
expected results for fiscal year end 2021, new discontinued
operations reporting and planned earnings release date for the
fiscal-fourth quarter.
Fiscal-fourth quarter 2021 preliminary
resultsAshland expects to report sales for the fiscal year
end and fourth-fiscal quarter of 2021 of approximately $2.1 billion
and $591 million, respectively. These figures are $2.5 billion and
$697 million, respectively, on the historical-reporting basis
including Performance Adhesives.
In addition, Ashland expects to report Adjusted
EBITDA for the fiscal year end and fourth-fiscal quarter of 2021 of
approximately $495 million and $149 million, respectively. These
figures are $571 million and $165 million, respectively, on the
historical-reporting basis including Performance Adhesives as
reconciled in Table 1 of this release.
“The Ashland team executed at a high level
during the quarter despite continued challenges in global supply
chain and logistics,” said Guillermo Novo, chairman and chief
executive officer, Ashland. “Overall results for the year were
consistent with our original expectations as we made incremental
progress in successfully delivering products to our customers
during the final weeks of the quarter. As we enter fiscal year
2022, supply-chain challenges and raw-material inflation continue
to be issues for our team to actively manage. I look forward to
discussing our outlook for 2022 and beyond during both our earnings
call and virtual Investor Day presentation next week.”
Discontinued operations
accountingIn addition to the previously announced
agreement to sell the Performance Adhesives business and plans to
report the results of that business as discontinued operations
beginning with the fourth quarter results, Ashland has restated its
income statement results for fiscal years 2019 and 2020 with the
Performance Adhesives business reflected as discontinued
operations. The restated income statement will be filed today with
the SEC via a Form 8-K. Ashland currently expects the sale of the
business to close in the March quarter of 2022.
Fourth-quarter earnings release and
webcastAshland Global Holdings Inc. (NYSE: ASH) will issue
its fourth-quarter earnings release at approximately 5 p.m. ET on
Tuesday, November 9, 2021. The company’s live webcast with
securities analysts and investors will take place at 9 a.m. ET,
Wednesday, November 10, 2021 and include an executive summary and
detailed remarks. Simultaneously, the company will post a slide
presentation in the Investor Relations section of its website
http://investor.ashland.com.
Among those participating in the webcast
presentation will be:
- Guillermo Novo, chairman and chief executive officer;
- Kevin Willis, senior vice president and chief financial
officer; and
- Seth Mrozek, director of investor relations.
The webcast and supporting materials will be
accessible through the Investor Relations section of the Ashland
website at http://investor.ashland.com. Following the live
event, an archived version of the webcast and supporting materials
will be available on the website for 12 months.
Investor Day reminderAs a
reminder, Ashland will hold a virtual investor day on Friday,
November 12, 2021 beginning at 9 a.m. ET.
The presentations will outline expectations for
Ashland's future performance followed by a live question and answer
session and a virtual innovation tradeshow. The virtual tradeshow
will allow participants to experience an array of new technologies,
innovations and applications that Ashland solvers around the world
are contributing to meet customers’ needs. During the live event,
additional Ashland leaders will be available to participate in
virtual question and answer sessions.
To participate in Ashland’s virtual investor
day, please register here.
The information in this release is preliminary,
based upon information available at the time of this news release,
and actual results may differ.
Use of Non-GAAP MeasuresAshland
believes that by removing the impact of depreciation and
amortization and excluding certain non-cash charges, amounts spent
on interest and taxes and certain other charges that are highly
variable from year to year, adjusted EBITDA provides Ashland’s
investors with performance measures that reflect the impact to
operations from trends in changes in sales, margin and operating
expenses, providing a perspective not immediately apparent from net
income. The adjustments Ashland makes to derive the non-GAAP
measure of adjusted EBITDA exclude items which may cause short-term
fluctuations in net income and which Ashland does not consider to
be the fundamental attributes or primary drivers of its business.
Adjusted EBITDA provides disclosure on the same basis as that used
by Ashland’s management to evaluate financial performance on a
consolidated and reportable segment basis and provide consistency
in our financial reporting, facilitate internal and external
comparisons of Ashland’s historical operating performance and its
business units and provide continuity to investors for
comparability purposes.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier specialty
materials company with a conscious and proactive mindset for
sustainability. The company serves customers in a wide range of
consumer and industrial markets, including adhesives, architectural
coatings, automotive, construction, energy, food and beverage,
nutraceuticals, personal care and pharmaceutical. Approximately
4,200 passionate, tenacious solvers – from renowned scientists and
research chemists to talented engineers and plant operators –
thrive on developing practical, innovative and elegant solutions to
complex problems for customers in more than 100 countries.
Visit www.ashland.com and www.ashland.com/sustainability to
learn more.
Forward-Looking Statements This
news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended.
Ashland has identified some of these forward-looking statements
with words such as “anticipates,” “believes,” “expects,”
“estimates,” “is likely,” “predicts,” “projects,” “forecasts,”
“objectives,” “may,” “will,” “should,” “plans” and “intends” and
the negative of these words or other comparable terminology.
Ashland may from time to time make forward-looking statements in
its annual reports, quarterly reports and other filings with the
SEC, news releases and other written and oral communications. These
forward-looking statements are based on Ashland’s expectations and
assumptions, as of the date such statements are made, regarding
Ashland’s future operating performance, financial condition and
expected effects of the COVID-19 pandemic on Ashland’s business,
operating cash flow and liquidity, as well as the economy and other
future events or circumstances. These statements include but may
not be limited to Ashland’s expectations regarding the impact of
supply and logistics constraints on its financial results, its
outlook for FY2022 and its ability to drive sales and earnings
growth and realize further cost reductions.
Ashland’s expectations and assumptions include,
without limitation, internal forecasts and analyses of current and
future market conditions and trends, management plans and
strategies, operating efficiencies and economic conditions (such as
prices, supply and demand, cost of raw materials, and the ability
to recover raw-material cost increases through price increases),
and risks and uncertainties associated with the following: the
impact of acquisitions and/or divestitures Ashland has made or may
make (including the possibility that Ashland may not realize the
anticipated benefits from such transactions); Ashland’s substantial
indebtedness (including the possibility that such indebtedness and
related restrictive covenants may adversely affect Ashland’s future
cash flows, results of operations, financial condition and its
ability to repay debt); severe weather, natural disasters, public
health crises (including the current COVID-19 pandemic), cyber
events and legal proceedings and claims (including product recalls,
environmental and asbestos matters); the effects of the COVID-19
pandemic on the geographies in which we operate, the end markets we
serve and on our supply chain and customers, and without
limitation, risks and uncertainties affecting Ashland that are
described in Ashland’s most recent Form 10-K (including Item 1A
Risk Factors) filed with the SEC, which is available on Ashland’s
website at http://investor.ashland.com or on the SEC’s website at
http://www.sec.gov. Various risks and uncertainties may cause
actual results to differ materially from those stated, projected or
implied by any forward-looking statements. The extent and duration
of the COVID-19 pandemic on our business and operations is
uncertain. Factors that will influence the impact on our business
and operations include the duration and extent of the pandemic, the
extent of imposed or recommended containment and mitigation
measures, and the general economic consequences of the pandemic.
Ashland believes its expectations and assumptions are reasonable,
but there can be no assurance that the expectations reflected
herein will be achieved. Unless legally required, Ashland
undertakes no obligation to update any forward-looking statements
made in this news release whether as a result of new information,
future events or otherwise.
1Financial results are preliminary until
Ashland’s FY 2021 Form 10-K is filed with the SEC.
™ Trademark, Ashland or its subsidiaries,
registered in various countries.
FOR FURTHER INFORMATION:
Investor
Relations:
Media Relations:Seth A.
Mrozek
Carolmarie C. Brown+1 (302)
594-5010
+1 (302)
995-3158samrozek@ashland.com
ccbrown@ashland.com
Ashland Global Holdings Inc. and Consolidated
Subsidiaries |
|
|
Table 1 |
Reconciliation of
Non-GAAP Data - Adjusted EBITDA |
|
|
|
|
Three
months ended September 30, 2021 and the twelve months ended
September 30, 2021 |
|
|
|
|
|
|
(In millions) |
|
3 Months 9/30/21 |
|
Fiscal 2021 |
Net income
(loss) |
|
$ 43 |
|
$ 220 |
Income tax expense (benefit) |
|
(2) |
|
(38) |
Net interest and other financing expense |
|
38 |
|
56 |
Depreciation and amortization |
|
64 |
|
244 |
EBITDA |
|
143 |
|
482 |
(Income) loss from discontinued operations (net of taxes) |
|
(10) |
|
(47) |
Key items included in EBITDA: |
|
|
|
|
Environmental reserve adjustments |
|
10 |
|
43 |
Restructuring, separation and other costs |
|
— |
|
10 |
Asset Impairments |
|
3 |
|
13 |
Inventory adjustments |
|
2 |
|
4 |
Net loss (gain) on acquisitions and divestitures |
|
— |
|
(11) |
Loss (gain) on pension and other postretirement plan
remeasurements |
1 |
|
1 |
Total key items included in EBITDA |
|
16 |
|
60 |
Adjusted
EBITDA |
|
$ 149 |
|
$ 495 |
|
|
|
|
|
Total key items
included in EBITDA |
|
$ 16 |
|
$ 60 |
Accelerated
amortization of debt issuance costs |
|
1 |
|
1 |
Debt refinancing
costs |
|
16 |
|
16 |
Unrealized gain
on securities |
|
5 |
|
(21) |
Total key items,
before tax |
|
$ 38 |
|
$ 56 |
|
|
|
|
|
Historically
Adjusted EBITDA |
|
$ 165 |
|
$ 571 |
Performance
Adhesives EBITDA |
|
(22) |
|
(84) |
Stranded Costs,
net of stranded D&A |
|
(4) |
|
(14) |
Environmental
adjustment |
|
10 |
|
22 |
Adjusted
EBITDA |
|
$ 149 |
|
$ 495 |
- Q4 2021 Earnings Update_FNL_20211101
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