Ashland — Nov 6, 2024 release

  Financial Outlook For fiscal year 2025, Ashland’s outlook is based on the following assumptions: • Continued geopolitical and economic uncertainty results in lower overall growth in most regions, • China’s economy will remain challenged for the fiscal year, especially the property market, • Increased competitive intensity in China and several export markets result in volume growth being partially offset by additional price erosion, • +$45 million in improved first-half absorption when compared to inventory actions in fiscal 2024, • +$20 million in realized cost reduction actions, • generally stable raw material environment, • ($30) million from reduced earnings and stranded costs from our nutraceuticals sale and other portfolio optimization actions, • ($20) million in negative price carryover from fiscal year 2024, • For Avoca, Ashland exited an unprofitable tolling operation and will sell or close the remaining sclareolide business; ($15) million year-over-year EBITDA erosion, and • ($10) million in variable incentive reset.   For fiscal year 2025, Ashland expects sales to be in the range of $1.90 billion to $2.05 billion, and Adjusted EBITDA to be in the range of $430 million to $470 million.   “Our portfolio optimization actions allow us to focus on high-value areas where we have technical and market leadership and our Globalize and Innovate initiatives will provide longer term growth catalysts,” said Guillermo Novo. “Although overall demand trends are improving, there is uncertainty around specific industry and regional dynamics, primarily related to challenging market conditions in China. In fiscal year 2025, we anticipate growing volumes to be partially offset with increased pricing competition.”   “In an environment with moderate growth and elevated uncertainty, we are increasing our focus on controllables that drive near term financial performance,” continued Novo. “Our priorities are to strengthen our core businesses