Ashland Q3 Profit Plunges On Raw Material Costs
Specialty chemicals company Ashland reported Thursday its third-quarter preliminary results with net income of $87 million or $1.09 per share, lower than last year's $1.85 per share. Income from continuing operations was $69 million or $0.86 per share, compared to last year's $1.46 per share.
Adjusted earnings from continuing operations fell to $0.92 per share from $1.01 per share a year ago.
On average, nine analysts polled by Thomson Reuters expected earnings of $0.84 per share. Analysts' estimates typically exclude special items.
Ashland Chairman and Chief Executive Officer James O'Brien said, "Our June quarter results were significantly affected by steep raw-material cost increases."
However, sales increased 13% to $1.67 billion. Analysts expected sales of $1.65 billion.
Looking ahead, the company noted that its principal challenge in the near term continues to be recovery of raw-material cost increases.
