Ashland Global Holdings Inc (ASH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1 million, or $ 0.01 a share in the quarter, against a net profit of $89 million, or $1.35 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $83 million, or $1.16 a share compared with $94 million or $1.41 a share, a year ago.
Revenue during the quarter went up marginally by 2.58 percent to $1,193 million from $1,163 million in the previous year period. Gross margin for the quarter contracted 135 basis points over the previous year period to 32.36 percent. Total expenses were 88.52 percent of quarterly revenues, up from 87.02 percent for the same period last year. That has resulted in a contraction of 150 basis points in operating margin to 11.48 percent.
Operating income for the quarter was $137 million, compared with $151 million in the previous year period.
However, the adjusted operating income for the quarter stood at $160 million compared to $164 million in the prior year period. At the same time, adjusted operating margin contracted 69 basis points in the quarter to 13.41 percent from 14.10 percent in the last year period.
“We were pleased that Ashland Specialty Ingredients returned to sales, volume and adjusted earnings growth in the first quarter. This performance was primarily driven by growth across several key end markets, both in industrial and consumer, as well as good cost discipline,” said William A. Wulfsohn, Ashland chairman and chief executive officer. “In addition, Ashland Performance Materials reported earnings results that were better than expected due to strong Composites volume. Meanwhile, Valvoline kicked off its first full quarter as a public company with strong growth in lubricant gallons, sales and earnings. Overall, Ashland’s performance in the first quarter reflects a solid start to the fiscal year.”
The company has spent $41 million cash to meet investing activities during the quarter as against cash outgo of $44 million in the last year period.
The company has spent $435 million cash to carry out financing activities during the quarter as against cash outgo of $219 million in the last year period.
Cash and cash equivalents stood at $704 million as on Dec. 31, 2016, down 32.24 percent or $335 million from $1,039 million on Dec. 31, 2015.
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