Ashland Global Holdings Inc. (ASH) saw its loss widen to $276 million, or $4.46 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $55 million, or $0.82 a share. On the other hand, adjusted net income for the quarter stood at $95 million, or $1.52 a share compared with $110 million or $1.62 a share, a year ago.
Revenue during the quarter went down marginally by 2.50 percent to $1,248 million from $1,280 million in the previous year period. Gross margin for the quarter expanded 599 basis points over the previous year period to 30.21 percent. Operating margin for the quarter stood at negative 11.70 percent as compared to a negative 7.89 percent for the previous year period.
Operating loss for the quarter was $146 million, compared with an operating loss of $101 million in the previous year period.
However, the adjusted operating income for the quarter was stable at $178 million when compared with the prior year period. At the same time, adjusted operating margin improved 36 basis points in the quarter to 14.26 percent from 13.91 percent in the last year period.
"Ashland passed a significant milestone in the fourth quarter with the successful completion of Valvoline’s IPO," said William A. Wulfsohn, Ashland chairman and chief executive officer. "In addition, Ashland Specialty Ingredients returned to volume growth and Valvoline continued to perform at a high level. At the same time, we made good progress on converting earnings to cash. During the quarter Ashland generated $149 million in free cash flow, bringing our total for the fiscal year to $403 million, a 24 percent increase from last year."
Operating cash flow improves significantly
Ashland Global Holdings Inc. has generated cash of $663 million from operating activities during the year, up 98.50 percent or $329 million, when compared with the last year.
The company has spent $332 million cash to meet investing activities during the year as against cash outgo of $393 million in the last year. It has incurred net capital expenditure of $298 million on net basis during the year, up 13.74 percent or $36 million from year ago.
The company has spent $394 million cash to carry out financing activities during the year as against cash outgo of $30 million in the last year period.
Cash and cash equivalents stood at $1,188 million as on Sep. 30, 2016, down 5.49 percent or $69 million from $1,257 million on Sep. 30, 2015.
Debt comes down
Ashland Global Holdings Inc. has recorded a decline in total debt over the last one year. It stood at $3,244 million as on Sep. 30, 2016, down 13.01 percent or $485 million from $3,729 million on Sep. 30, 2015.
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