US Ashland sees market weakness, lowers guidance

Ashland had lower-than-expected sales in personal care and certain industrial end markets within its specialty ingredients business, which will see it report weaker fiscal Q3 and full-year results, the US-based international specialty chemicals company said in a filing late on Wednesday.

In response to the demand weakness, Ashland has reduced production volumes.

For the fiscal third quarter ended 30 June, Ashland now expects to report earnings from continuing operations in the range of $22-$24m, on sales of about $641m.

Q3 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) are expected at $138m-$142m.

Ashland also said that weaker-than-expected global market conditions will affect results for the full fiscal year ending 30 September.

Ashland now expects fiscal year 2019 adjusted EBITDA for specialty ingredients to be in the range of $560m-$570m. This compares with previous guidance from 30 April of $585m-$610m

“We expect a more normalised growth environment to resume during the first half of fiscal year 2020,” it added.

Ashland’s fiscal Q3 earnings are expected to be released on 30 July.