Ashland Inc. reported first-quarter fiscal 2025 sales of $405 million, a 14% decrease year-over-year, with portfolio optimization initiatives accounting for an $50 million reduction. The company experienced a net loss of $165 million, compared to a net income of $26 million in the prior-year quarter, primarily due to a non-cash impairment on the Avoca business. Adjusted EBITDA was $61 million, down 13% from the prior-year quarter, with portfolio optimization reducing it by approximately $8 million.
Organic sales volumes declined by one percent, mainly due to lower demand in Europe and inventory control actions by pharmaceutical customers. Despite these headwinds, Personal Care, Specialty Additives, and Intermediates segments saw organic sales volume improvement. Cash flows used by operating activities totaled $30 million, and ongoing free cash flow was negative $26 million.
Ashland reiterated its full-year fiscal 2025 outlook, projecting sales in the range of $1.90 billion to $2.05 billion and Adjusted EBITDA between $430 million and $470 million. The company emphasized its focus on accelerating cost savings and enhancing productivity initiatives to navigate uncertain markets and deliver on its commitments.
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