Sales of $575 million, down five percent from the prior-year quarter Net income (including discontinued operations) of $120 million, or $2.39 per diluted share Income from continuing operations of $121 million, or $2.40 per diluted share Adjusted income from continuing operations excluding intangibles amortization expense of $64 million, or $1.27 per diluted share Adjusted EBITDA of $126 million Cash flows provided by operating activities of $54 million; ongoing free cash flow2 of $4 million WILMINGTON, Del., April 30, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE:ASH) today announced financial results1 for the second quarter of fiscal year 2024, which ended March 31, 2024, and issued its outlook for third quarter and full-year fiscal 2024. The global additives and specialty ingredients company holds leadership positions in high-quality, consumer-focused markets including pharmaceuticals, personal care and architectural coatings. Sales in the second quarter were $575 million, down five percent versus the prior-year quarter. Results during the quarter reflect market-demand dynamics and underlying business performance that were generally consistent with previously communicated expectations. Consolidated year-over-year quarterly volumes modestly increased for the first time since June 2022 as demand continues to normalize within the Personal Care and Specialty Additives segments, partially offset by unfavorable Life Sciences volumes. Overall pricing was softer in a moderately deflationary raw material environment, mainly within the Intermediates and Specialty Additives segments. Foreign currency unfavorably impacted sales by $1 million. Net income was $120 million, up from $91 million in the prior-year quarter. Income from continuing operations was $121 million, up from $92 million in the prior-year quarter, or income of $2.40 per diluted share, up from $1.68. Adjusted income from continuing operations excluding intangibles amortization expense was $64 million, down from $78 million in the prior-year quarter, or $1.27 per diluted share, down from $1.43. Adjusted EBITDA was $126 million, down 13 percent from $145 million in the prior-year quarter, driven by unfavorable Intermediates pricing and higher selling, administrative, research and development (SARD) expenses, primarily related to the reset of variable compensation, partially offset with favorable production costs and product mix. Favorable production costs were a result of generally lower spend, partially offset with lower absorption. Average diluted shares outstanding totaled 51 million in the second quarter, down from 55 million in the prior-year quarter, following the company's share repurchase activities over the past 12 months. Ashland has $900 million remaining under the existing evergreen share repurchase authorization. Cash flows provided by operating activities totaled $54 million, down from $56 million in the prior-year quarter. The second quarter of fiscal year 2024 cash flows provided by operating activities includes the favorable impact of the Accounts Receivable Sales Programs. Ongoing free cash flow2, which is not impacted by the Accounts Receivable Sales Programs, totaled $4 million compared to $37 million in the prior-year quarter. "Financial results in the March quarter yielded adjusted EBITDA which exceeds the outlook range we issued on January 30, 2024, with revenue at the mid-point," said Guillermo Novo, chair and chief executive officer, Ashland. "The improving sales trends experienced in December and January sustained for the second quarter as our volumes continue to converge with customer end market demand. While still early from a trending perspective, the breadth of our ongoing recovery as well as constructive economic and industry data, reinforces our belief that a demand normalization is underway within the Personal Care and Specialty Additives segments." "Pricing was down as we compare against our inflation recovery actions last year while the Ashland team works to strike an appropriate balance of moderating costs and increased competitive activity," continued Novo. "Ashland prudently managed production and inventory levels throughout the quarter as we monitored volume trends and seasonal demand pick-up, which ultimately came in as expected. Our portfolio optimization activities remain on track, which we anticipate will enable a stronger and more resilient foundation to efficiently support greater volumes going forward," concluded Novo. Reportable Segment PerformanceTo aid in the understanding of Ashland's ongoing business performance, the results of Ashland's reportable segments are described below on an adjusted basis. In addition, EBITDA and adjusted EBITDA are reconciled to operating income in Table 4. Free cash flow, ongoing free cash flow and adjusted operating income are reconciled in Table 6 and adjusted income from continuing operations, adjusted diluted earnings per share and adjusted diluted earnings per share excluding intangible amortization expense are reconciled in Table 7 of this news release. These adjusted results are considered non-GAAP financial measures.  For a full description of the non-GAAP financial measures used, see the "Use of Non-GAAP Measures" section that further describes these adjustments below. Life SciencesSales were $222 million, down eight percent from the prior-year quarter. Sustained cellulosics pharmaceutical demand was more than offset by the normalization of competitive dynamics in polyvinylpyrrolidone (PVP) when compared to a strong prior-year period. Volumes to the nutrition end market demonstrated moderate sequential improvement but was weaker than the prior-year. Sales of nutraceuticals products continue to demonstrate a strong recovery compared to the prior-year period. Foreign currency had a negligible impact on sales when compared to the prior-year quarter. Adjusted operating income was $50 million compared to $58 million in the prior-year quarter. Adjusted EBITDA was $66 million compared to $75 million in the prior-year quarter, primarily reflecting lower PVP sales volume, unfavorable product mix and higher SARD expenses. Foreign currency had a negligible impact on Adjusted EBITDA when compared to the prior-year quarter. Personal CareSales were $169 million, up one percent from the prior-year quarter. Higher volume in skin care, oral care and hair care was partially offset by lower volume in Avoca and lower pricing. Foreign currency unfavorably impacted sales by $1 million or one percent. Adjusted operating income was $25 million compared to $14 million in the prior-year quarter. Adjusted EBITDA was $45 million compared to $35 million in the prior-year quarter, primarily reflecting the impact of higher sales volumes, favorable product mix and production costs, partially offset with variable compensation reset. Favorable production costs were a result of lower spend and higher absorption. Foreign ...