Ashland Inc. Announces $1 Billion Share Repurchase Authorization

Ashland's Board of Directors has approved a new $1 billion stock buyback authorization


Ashland Inc., a global additives and specialty ingredients company, recently provided an update on its preliminary fiscal 2023 third-quarter financial results and shared its outlook for the fiscal year. Ashland has been impacted by customer de-stocking across various markets, leading to sales declines and reduced earnings. However, amidst these challenges, Ashland's Board of Directors has approved a new $1 billion share repurchase authorization to maximize shareholder value.

Preliminary Fiscal 2023 Third-Quarter Financial Results

Ashland's third-quarter financial results reflect the continuation and intensification of customer de-stocking in several end markets. Ashland implemented proactive internal inventory-control measures, resulting in approximately $15 million of reduced cost absorption. As a result, sales are expected to be around $545 million to $550 million, down approximately 15% compared to the prior-year period. Lower sales volumes and reduced cost absorption are also projected to impact the adjusted EBITDA, estimated to be in the range of $130 million to $135 million, down approximately 22-25% compared to the previous year.

New $1 Billion Share Repurchase Authorization

To enhance shareholder value, Ashland's Board of Directors has approved a new $1 billion evergreen share repurchase authorization. This decision replaces the previous $500 million evergreen authorization, under which $200 million remained. Since September 2022, Ashland has already repurchased approximately $300 million of its outstanding shares under the previous authorization, demonstrating its commitment to returning value to shareholders.

Fiscal Year 2023 Outlook

Given the ongoing customer de-stocking, significant macroeconomic uncertainty, and limited visibility into global consumer demand, Ashland has adjusted its financial outlook for fiscal year 2023. If the current de-stocking dynamics persist throughout the fiscal fourth quarter, Ashland expects sales to be around $2.2 billion, with adjusted EBITDA estimated in the range of $500 million.

Challenges and Future Priorities

Guillermo Novo, Chair and Chief Executive Officer of Ashland, acknowledged the unprecedented impact of customer de-stocking actions on the markets they serve. While uncertainties prevail regarding the end of de-stocking dynamics, Ashland remains focused on maximizing near-term performance, maintaining disciplined capital allocation, and capitalizing on longer-term growth opportunities, particularly in innovation-driven platforms. Ashland plans to undertake additional targeted restructuring actions to reduce costs and allocate resources strategically.

Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.

Free Trial: Signup for 1 Free Alert Per Week

Add your email to get alerts & the report.

Get 1 free alert per week via email

Upgrade if you want more or platform access

We'll also send you a free report

or Click Here to get full access now

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.