Ashland released its financial results for the second quarter of fiscal year 2024, concluding on March 31, 2024, and provided its forecasts for the third quarter and full fiscal year 2024.
In the second quarter, sales totaled $575 million, a five percent decrease compared to the same period last year. The results for the quarter align with anticipated market trends and business performance communicated previously.
Net income rose to $120 million, an increase from $91 million in the previous year’s quarter. Income from continuing operations also saw growth, reaching $121 million compared to $92 million in the prior-year quarter. This translates to earnings of $2.40 per diluted share, up from $1.68.
Quarterly volumes across all segments experienced a slight increase compared to the previous year, marking the first uptick since June 2022, driven by the normalization of demand in the Personal Care and Specialty Additives sectors, albeit partially offset by decreased volumes in Life Sciences. Pricing overall was weaker due to a moderately deflationary raw material environment, particularly affecting the Intermediates and Specialty Additives segments.
“Financial results in the March quarter yielded adjusted EBITDA which exceeds the outlook range we issued on January 30, 2024, with revenue at the mid-point,” said Guillermo Novo, chair and chief executive officer, Ashland. “The improving sales trends experienced in December and January sustained for the second quarter as our volumes continue to converge with customer end market demand. While still early from a trending perspective, the breadth of our ongoing recovery as well as constructive economic and industry data, reinforces our belief that a demand normalization is underway within the Personal Care and Specialty Additives segments.”
In the Life Sciences segment, sales amounted to $222 million, marking an eight percent decline from the previous year’s quarter. While there was continued strong demand for cellulosics pharmaceuticals, this was outweighed by the normalization of competitive conditions in polyvinylpyrrolidone (PVP) compared to a particularly robust prior-year period. Volumes to the nutrition end market showed some improvement compared to previous quarters but remained weaker compared to the same period last year.
In the Personal Care segment, sales reached $169 million, marking a one percent increase from the same period last year. Increased volume in skin care, oral care, and hair care products contributed to this growth, although it was partially offset by decreased volume in Avoca and lower pricing. Additionally, foreign currency effects resulted in a $1 million or one percent decrease in sales.
In the Specialty Additives segment, sales amounted to $157 million, indicating a two percent decrease from the same quarter last year. This decline was primarily driven by increased volumes in coatings and performance specialties, which were offset by reduced pricing, notably in the Asia Pacific region, and decreased volumes in the energy end market. Foreign currency fluctuations had minimal impact on sales compared to the prior-year quarter.
In the Intermediates segment, sales totaled $40 million, marking a 22 percent decrease from the same quarter last year. This decline was primarily attributed to reduced pricing, although it was partially mitigated by higher volumes in merchant sales.
