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Ashland's (ASH) Coating Lab in Singapore to Support Local Needs

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Ashland Global Holdings Inc. (ASH - Free Report) has opened a newly constructed architectural coating technical service laboratory in Singapore. This will widen the company’s reach in catering to local needs in South East Asia.

Being a top player in rheology modifiers, specifically in the additive segment, the new facility will positively impact its customer support by pacing up the response to regional needs. This investment is a testimony to Ashland’s dedicated efforts toward solving customer problems by driving innovation in specialty additives and solidifying its existing customer relationship in the region. The new lab, along with its Technical Center of Excellence in Shanghai, China, is an important futuristic investment.

Shares of Ashland have grown 40.3% in a year against the industry’s decline of 6.7%. The estimated earnings growth rate for the current fiscal year is pegged at 73.9%.



In the fiscal second quarter, the company recorded earnings of $1.05 cents per share, missing the Zacks Consensus Estimate of $1.36 per share. Sales were down around 2% year over year to $598 million, missing the Zacks Consensus Estimate of $632.6 million.

The company’s results were hurt by weather-related disruptions in the U.S. Gulf Coast and changing consumer habits amid the coronavirus pandemic. Ashland expects to recover part of the lost cost as the affected facilities work to make up for some of the lost production during the fiscal second quarter. However, it has benefited from improved industrial demand and cost-reduction actions.

 

Zacks Rank & Stocks to Consider

Currently, Ashland carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) and DAQO New Energy Corp. (DQ - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Element Solutions Inc. (ESI - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Celanese has a projected earnings growth rate of 68.3% for the current year. The company’s shares have jumped 92% in a year.

DAQO has a projected earnings growth rate of 255.2% for the current year. The company’s shares have soared to 645.6% in a year.

Element Solutions has a projected earnings growth rate of 41.7% for the current year. The company’s shares have surged 110% in a year.

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