Ashland Global Holdings Inc
. (ASH - Free Report
) declared that it will raise the price of composite products in Europe, the Middle East and Africa (EMEA) by €100 per metric ton. The price increase will be effective from Sep 15 or as soon as possible thereafter as contracts permit.
According to Ashland, continued spike in costs of key raw materials including styrene increased led to the price hike. The move is expected to ensure effective service to customers in terms of quality and performance along with the ability to reinvest in the company’s product line.
Shares of Ashland have declined 48.2% in last six months, underperforming the industry
’s 0.9% gain.
Ashland reported a net loss from continuing operations of $16 million or 26 cents per share in third-quarter fiscal 2017 (ended Jun 30), against a net income of $24 million or 38 cents in the year-ago period. Barring one-time items, adjusted earnings were 83 cents per share which beat the Zacks Consensus Estimate of 70 cents.
According to Ashland, the Specialty Ingredients unit recorded a 7% year-over-year increase in revenues while sales of Composites grew by 20% on the back of disciplined pricing and robust volume expansion in various global end markets. Intermediates and Solvents unit also witnessed a 9% increase in sales owing to continued recovery in butanediol pricing and improving global demand.
Ashland closed the acquisition of Pharmachem Laboratories, Inc., in May 2017. The acquisition was a key contributor to Ashland’s sales in the third quarter. The company expects to achieve meaningful cost synergies from leveraging combined capabilities along with tax synergies resulting from Pharmachem integration.
Ashland Global Holdings Inc. Price and Consensus