Ashland Earnings Beat Estimates on Adhesive Demand
Chemical maker Ashland posted higher-than-expected quarterly profit as it sold more adhesives and coatings.
The company makes a wide range of specialty chemicals, including Valvoline oil, as well as materials for the packaging and water purification industries.
For the second quarter ended March 31, Ashland posted net income of $88 million, or $1.10 per share, compared with $485 million, or $6.02 per share, a year earlier.
The year-ago period included a $231 million gain from the sale of Ashland's distribution unit to private equity firm TPG Capital for $979 million cash.
Excluding restructuring programs and other one-time items, Ashland earned $1.52 per share for the fiscal second quarter.
By that measure, analysts had expected earnings of $1.39 per share, according to Thomson Reuters I/B/E/S.
Sales rose 34% to $2.08 billion. Analysts had expected $2.08 billion.
Sales rose in three out of four of the company's main units.
"Our overall business continues to perform well, with increased sales, stable margins and improved cash flow during the quarter despite some market weakness in certain commercial units," Ashland Chief Executive James O'Brien said in a statement.
