Ashland (ASH) to Hike Product Prices in the EMEA Region

Zacks

Ashland Inc.’s ASH commercial unit, Ashland Performance Materials, has announced a price increase on its portfolio of unsaturated polyester resins, epoxy vinyl esters and gelcoats sold in Europe, the Middle East and Africa (EMEA) by €100 per ton. The hike will be effective from Jun 1, 2015, or as contracts permit.

Ashland has hiked the product prices in order to deal with the increasing costs of key raw materials and unplanned shutdowns of major suppliers. Adapting to changing market conditions enables the company continuously bring forth innovative products to its customers.

Ashland's share price rose 0.6% in the trading session last Wednesday before closing the day lower at $128.51.

In Mar 2015, Ashland announced that it is raising the price of its portfolio of unsaturated polyester resins, epoxy vinyl esters and gelcoats in the EMEA by €150 per ton. The main reason behind the increase is the rising costs of the company’s major raw materials.

Ashland offers specialty chemicals in more than 100 countries. After the sale of its Water Technologies unit last year, Ashland now has three commercial units – Specialty Ingredients, Performance Materials and Valvoline.

Ashland’s renowned brand Valvoline launched its Full Synthetic High Mileage motor oil with MaxLife technology on a wide-scale basis in Feb 2015. The lubricant provides advanced protection to engines against three major issues – heat, deposits and wear.

Ashland currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the specialty chemicals space include Ferro Corporation FOE, Flexible Solutions International Inc. FSI and Chemtura Corporation CHMT. While Ferro sports a Zacks Rank #1 (Strong Buy), Flexible Solutions and Chemtura hold a Zacks Rank #2 (Buy).

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