Ashland Global Holdings Inc. recently announced preliminary financial results for the first quarter of its fiscal 2020 year, ended December 31, 2019. Sales were $533 million, down 7% vs. the prior-year quarter, driven primarily by weaker demand in consumer end markets, the impact of the prior-year business loss at Pharmachem, and weaker demand in industrial end markets. Net income was $32 million, compared to a loss of $48 million in the prior-year quarter.
“As expected, results in the quarter were challenged by market weakness and the impact of business loss that occurred last year,” said Guillermo Novo, Ashland’s chairman and CEO. “The combination of actions we are taking internally plus the prospect for less global uncertainty in the coming quarters should support our momentum for steadily improving results during fiscal year 2020. We took important steps over the past few months in realigning the Specialty Ingredients business by adding new leadership, beginning the process to empower the business units to drive success in their businesses, and starting some cost-improvement activities.”
Sales in the Specialty Ingredients segment were $505 million, down 9% from the prior-year quarter, due primarily to weaker demand in consumer end markets, the impact of the prior-year business loss at Pharmachem, and weaker demand in industrial end markets. Unfavorable foreign currency reduced sales by 1%.
In Intermediates & Solvents, sales were $28 million, up 22% from the prior-year quarter. Sales in the prior-year quarter were reportedly weaker than normal.
Additional details are available at www.ashland.com.