Ashland (ASH) Raises Prices of Composites Products in India

Zacks

Ashland Global Holdings Inc. ASH is raising the prices of its all composites products in India. The price hike action is effective Jan 3, 2019, or as contracts permit.

The company is hiking prices of composites products by $65 per ton. The price rise action is mainly due to increase in costs of key raw materials. Ashland intends to provide customer services with the utmost quality and performance as well as is committed to reinvest in product line.

In a year’s time, shares of Ashland have declined 1.2% compared with the industry’s fall of 10.5%.

In December 2018, Ashland provided fiscal 2019 financial view and reaffirmed business outlook. The latest projections reflect the adoption of discontinued operations accounting for the Composites unit and butanediol manufacturing facility in Germany due to the pending divestiture to INEOS Enterprises in a deal valued at roughly $1.1 billion.

The company projects adjusted earnings per share (EPS) for fiscal 2019 in the range of $3.10-$3.40, down from the prior view of $4.20-$4.40.

Adjusted EBITDA expectations for the Specialty Ingredients unit are unchanged at $610-$635 million and the same for the Composites business is not applicable. For the Intermediates & Solvents business, adjusted EBITDA is projected to be $20-$30 million, down from previous expectation of $55-$65 million.

Adjusted EPS for first quarter of fiscal 2019 is projected in the band of 5-15 cents, down from 55-65 cents expected earlier.

Ashland Global Holdings Inc. Price and Consensus

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the basic materials space are Verso Corporation VRS, Ingevity Corporation NGVT and Cameco Corporation CCJ.

Verso has an expected earnings growth rate of 63.5% for 2019 and a Zacks Rank #1 (Strong Buy). The company’s shares have surged 34.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected earnings growth rate of 21.5% for 2019 and a Zacks Rank #1. The stock has rallied 15.4% in a year.

Cameco has an expected earnings growth rate of 20% for 2019 and a Zacks Rank of 2 (Buy). Its shares have gained 21% in a year’s time.

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