Leading global additives and specialty ingredients company Ashland has reported preliminary sales of approximately $525 million in the first quarter (Q1) of fiscal 2023 (FY23), up 3 per cent versus the prior-year period. The company expects income from continuing operations of approximately $42 million, or approximately $0.76 per diluted share, during Q1 FY23.

Adjusted earnings from continuing operations excluding intangibles amortisation are expected to be approximately $54 million, or $0.97 per diluted share. Net income (including discontinued operations) is estimated to be approximately $40 million, Ashland said in an update for preliminary fiscal 2023 first-quarter financial results.

The company’s sales declined in both the specialty additives and personal care segments, driven by the COVID-19 impact in China, general economic weakness in Europe, and aggressive inventory destocking by distributors in both China and Europe.

In general, ingredient and additive demand from the company’s major customers remained resilient. Destocking by customers was customer-specific with no underlying patterns in any markets. Price and mix performance remained strong across all businesses.

Ashland’s Adjusted EBITDA is expected to be approximately $108 million in Q1 FY23, up two per cent versus the prior year. Adjusted EBITDA on a constant-currency basis increased by approximately 15 per cent.

Based on current expectations and considering external uncertainties, Ashland continues to expect sales in the range of $2.5 billion to $2.7 billion for fiscal 2023, consistent with prior expectations. In addition, the company continues to expect adjusted EBITDA to be within the prior outlook range of $600 million to $650 million, with the current forecast models indicating earnings below the mid-point of that range.

“Ashland is executing its plans and priorities, focusing on high-quality resilient markets, strong price and mix management, disciplined operations, accelerating our innovation initiatives and investing in our future,” said Guillermo Novo, chair and chief executive officer, Ashland.