ASH - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Ashland Global Holdings' Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time.

As a reminder, this conference call is being recorded. I would now like to turn the call over to Seth Mrozek, Director, Investor Relations. begin. may you Sir,

Seth A. Mrozek

Good XXXX and webcast. earnings Mrozek, Relations. is Grace. second My to quarter Seth Investor Ashland fiscal conference Director, morning, you, welcome everyone, Ashland's name Thank call and

call me Officer; X:XX March Financial XX, quarter Executive Willis, Officer. today Joining released Kevin May Eastern the are Wulfsohn, Time, results and and and Ashland's President Vice after ended preliminary XXXX PM, Bill yesterday, Senior We shortly Chief Chairman Chief X. the on for

under ashland.com, to website, Investor our a to slides posted each documents we and section these Form furnished the the have Additionally, Relations in X-K. of SEC

reflecting As such include discussed today we will forward-looking statements be reasonable assumptions by believe enhances are a be law. assure defined Bill? understanding and will may such the of as call. over that, to securities the discussing presentations Bill. is call adjusted based such accurately ongoing note term Please on performance our reminder, We also during this some I will cannot this our achieved. expectations statements under but our of any included turn that business. believe matters With that U.S. in results We more

William A. Wulfsohn

morning, everyone. and Seth, you, Thank good

in expectations the Ashland's as strong drove the exceeded second earnings growth financial results in quarter Specialty quarter. sales in our Ingredients and results

volume mix acquisitions. X% Specialty quarter. by increasingly volume fact, excluding currency the and team area, operating of gains in focus Notably, growth, X% Year-to-date, segments second in Within driving which in the our these are adjusted averaged all over organic EBITDA. Ingredients, critical three sales continues In generated we and totaled robust driven and this growth on have to gains.

initiatives. end growth from improved sales largely Ingredients X% markets by capacity Specialty XX% improved, the our leading strong increased way, utilization year-over-year. pharma All continued delivering delivered was sales product volumes, result, from in the This pricing including growth asset actions. growth driven and a with As XX% quarter, mix organic

In with biofunctional we Personal driven again Care segment, gains addition, in in growth ingredients. X%, the up continued sales saw strong by

industrial sales climbed X%, business, side sales On Energy rose of Adhesive the the and and X%. improved Construction X%, Coatings

margin. Pharmachem contributed war gap this QX of XX% with addition, adjusted At Ingredients in reduced half actions price pricing gross expected year-over-year results a in sequentially increase year. second improvement EBITDA expected aggressive growth achieve actions. EBITDA Together, basis same time, broad-based the the help to adjusted contribution the and the and made quarter. to within we point are In us These in a margin fiscal XX improved a our in increase in as Specialty strong

basis of the target XXX total, We driven across compared are declined the and a SG&A with flat, percentage flat impact as prior In of excluding achieving our sales rising initial year. organic acquisitions company SG&A keeping revenues of spending, to currency. points

currency. Next, the Within increase the delivered volume continued discipline, deliver and mix sales France. improvements and team team in from strong growth in strong favorable price contributions pricing an through we Composites acquired to from the plant sales XX% and and Solvents, Intermediates earnings

by enter guidance for delivered well adjusted of $X.XX, EPS adjusted total, year. for generating its $X.XX track adjusted points, XXX the in quarter, result, is increased by original year, on segments per the our XX%, and of grew our $X.XX sales a with momentum basis XX% As financial the EBITDA fiscal Ashland half three broad-based and Ashland is meet or above all team which share. the sales earnings summary, by we to targets of previous margins EBITDA In exceed second and the of to as their operating

initial at is year adjusted well XX% to our year of have outlined outlook last XX% fiscal for Investor increased earnings forecast that and grow product per such Day our actions and for our which and premium the being is customers. to at solving XX% always above for as by mix, we specific momentum our growth now As reinforce beginning our promise this sustain share successful This strategies XXXX, Ashland's expect a introductions above year, the result, and driven brand year. through of the new market

made of As taken want of end sales and our have initiatives these in gain selling also quarter we highlight Ingredients record continuing greater total Specialty few enhance cost quarter by a action consumer focusing for management. traction many by improved during achieved value we beginning and in and expect asset areas these mentioned, thereafter. team to the specialty on I markets. competitiveness the utilization, a progress to achievements We've to the our We third Notably, quarter. important

in customers only utilization and sales pharma improved product our continued raising five off to not highest addition, Adhesive been the one of the proud Ashland I'm years. asset we CMC, full review first taking strong start, introduction. product to our more Ashland secondly, we production Even the our with look team a as forward quarter, these position And on Ashland to as to also to of The led also in have since Composites developments work the disciplined to is sales manufacturing in a its strategic quarters. well as plan enabled new volume an it Coatings for a with months growth. more focused businesses BDO and contributions in Earlier initiated segment, Marl, cost second actions. strong the portfolio in specifically to streamlined coming and important the Ingredients, very Specialty Ingredients. reach our XX with exciting we're product we purchasing management have earnings benefit the Germany. concentrating HEC expected gains, but launches the structure. Specialty increase of finally, announced make of will And to and achievements important teams to and potential, create of few In a for price portfolio The these alternatives Klucel in in past quarterly the over sales more on by several facility actions divestiture competitive and

one, costs manufacturing program, in from: costs SG&A; corporate facility facility-related of $XX Specifically, program $XXX expected Ingredients to the to committing approximately transfers million this of three, Specialty corporate we the eliminate are to Under costs. allocated are Marl and reductions. and and Composites BDO eliminated million two, a SG&A; business to be through

to to of our change approximately global teams XX%. we XX% million leadership our of expected this and costs, speed achievement a a have of drive of organization, $XX EBITDA already addition, impact with to decision Under in In fiscal Ingredients customer-centric are addition year and work XXXX. end by target operating our and efficiency, expect redefine meaningful making, will costs underway more eliminated to be improve calendar cost to actions, are we program, across lowering together. XXXX reductions, a drive These in Actions the run accelerate improved margin Specialty fundamental and engaged in profitability our full our to rate team organization. achieve how drive savings

describe call financial will to As quarterly regular details earnings update on by quarter. from we the Kevin I Kevin, you share in now to sharing progress our updates turn calls some who QX. will over intend additional will later, beginning the on our

J. Kevin Willis

an operations up morning, share. diluted operations reported year-ago good million, and compared to reported prior you, adjusted $X.XX XX% In in On basis, $XXX from continuing the income quarter Thank of $X.XX from period. Adjusted we per everyone. share, in GAAP from the the $X.XX diluted of was we continuing Bill, quarter, EBITDA earnings the per year.

year. during prior the Ashland's amounts the $XX flow million and the $XX year include second million of costs positive second the in the were year-ago quarter, in million million $X a restructuring period. prior was Free in fiscal million cash These in restructuring capital a of $XX the negative period. quarter $XX XXXX to million in expenditures during $XX compared to quarter compared

at which our by Our adjusting effective due our the reduce geography to lower tax the led the fiscal effective and items, income below The range was X%, hundred quarter. year points. was for XXXX tax tax few quarter, beginning basis has rate key of a rate rate to mix us was for expectation after

with rate tax and made turns to of are be year leverage year. X.X the growth XX%. committed and turns We at to sheet. due delevering remain We've debt currently during half for this of year reducing EBITDA to first progress debt EBITDA a our We our the the around gross expect balance reduction We of started combination cash good to to X.X turns. X.X

Regarding business. March, the in Composites in we we and announced have Marl interest that divestiture significant received the

month. We the of offering materials end this distribute expect to initial by

leaner, Composites as To the to is the Organizational represents a an finance, walk to a be legal annually. Effectiveness and ago. regarding divestiture that program, the Out course, to of businesses to referenced through this around others, pieces. approximately clarification have also more more create on human the comments Cost $XX & the Bill we million moments Marl competitive of such allocate when additional IT, and true to these we provides end resources, continue Ashland. me The businesses will and have provide share. a like few no agreement services Cost signed provide a question would let few updates Out make calendar the you track to I Initiative And, There year. that We some corporation catalyst to by we

will managed improvement sale. costs to will transfer been that transfer be program this Rounding the out historically, allocated the case the keep remaining ASI. cost Out business and million as expect doesn't a business to $XXX this within be out need program. labeled stranded any will required cost. be from the we part a This $XX As that with has million portion of the this will is of of Cost with bearing Any

With the perfect Composites to Marl sale the time right-size facility, structure. the cost it's of a and overall likely

We value more and are profile our growth of will the streamlining create employees customers, organization, our and confident and a we customer-centric structure, but also improving our for decision-making not creating the only cost shareholders. margin enhanced company, enhance that by

committed expect. the in track updates. early with that and have we great providing will to of this stages we with We've a is look you specific of and you We done we and we We executing progress this forward as this past, success the details we results type with the quarterly many it process we times to and initiative. proven plan that providing short this long time. record have the it are on are of and driving do in done ultimately The and, again anticipate

for tax for range businesses the based a outlook guidance Turning back strengthening this briefly $X.XX to as raised for our year, adjusted as our a lower have a well share outlook rate. we fiscal per on to $X.XX XXXX earnings to of

tax adjusted $X.XX prior-year the rate of diluted share, in per expect $X.XX $X.XX we quarter, to period. in third effective the the assumes earnings This compared estimate to share range for of XX% For an quarter. the per

We fiscal also million our in free outlook more flow for cash than $XXX reiterated for XXXX.

of half As you're the generate cash free of most year. typically aware, the second in our we flow

Now, the to back over I'll call Bill. turn

William A. Wulfsohn

Thank you, Kevin.

about building questions. core the for company. Thank specialty excited in March momentum you actions your With becoming towards We Grace, Ashland. in and you. I thank are accelerate the premier believe please business our for our that, in journey say open listening the announced and for the today will interest and line

Operator

Thank you. with comes And Parkinson question first from Suisse. Credit our Christopher

(USA) line Your you. - Credit Securities S. open. LLC now Parkinson Great. is Thank Christopher Suisse

William A. Wulfsohn

further and Parkinson just to the you're also pretty still into ASI, bit pharma little about fiscal it getting Securities think benefits. challenging (USA) you the efforts, morning. but volume margin Credit consumer, talk making year ongoing, Is LLC Good about growth Suisse in of you you're that solid next? Christopher Can during more and improvement? balance they're and the safe some mix Given like gross say the S. a seems to it's in especially it pricing Thanks. inroads how how -

William A. Wulfsohn

growth for you in the are very seeing Care. Personal the of Thank pleased, question. course, the pharma Yeah. and we we're by And that

we us mix, think I year. of we end Ingredients And, and Specialty that margins the considerably items make gap QX our combination we us and across of we're between And in to seen, gross have achieve fact, fiscal a in to deliver expect One further raising to are made the really to improved asset we've which in utilization anticipate helping QX, half it's our as going QX. are all that. that and progress is raw our progress price price of we programs and in continue improved markets. closed in allowing second the

decompose your segment $XX going cuts cost actually much through went I made? need Composites on And over between mind, be just utilization So, Credit feel our S. hit just the and in the I ASI? fiscal the can sell of can little and apologize, Just over new because you. looking when and Good. with and actions, the if the bit, but So, regarding know business cadence initiatives, the reduction are Securities to the margins appreciated. for to how asset we of based also, in sell target gross other in be you EBITDA you about Thank this – went quickly roughly, little processes, that Kevin Suisse million the new million in good year-over-year. LLC cost mix, year, the on in the and you savings clarification EBITDA Parkinson that bit, just implications Marl? of this pricing further would you're considerations cost just a I you (USA) guidance the apologize a $XX Christopher what - But

William A. Wulfsohn

means been just the our to we And path processes past incurred company, we typically what this Sure. in the purchases gone which it comment but have as a take at many the numerous opportunity really have as opposed there way we looking Kevin cost second the from can restructurings, he's the very question streamlined a in and and hand view essentially clean But the from sheet and with on that we become is, as as time. to get if to over cost sale transferred. ground-up that of businesses I'll looking focused this through are take-outs, the many a built at he the sales is long been over the many approach,

of that we course, And the so, at, that's believe really reductions, achieving looking we're cost so possible.

to a addition organization. that can lab, believe footprint, we help reduce customer-centric be or whether administrative drive that, more we can In it that us or to think manufacturing and our we

execute and But actually delayering doing And the like greater the we're targets cohesion can believe and creating those teams. financial that in our to enhance in important. we so, what terms marketplace yes, of by doing very we are we have ability the between things

part And, reference I would cost the first that, as of transferred, So, your maybe you say, gets Kevin, that can typical that. answers hopefully to the question.

J. Kevin Willis

kind several buckets this. Sure, sure. And there's to of

These that it of the the you Solvents and call bears. direct of the that of which that, in are direct business is part are commercial, at If of Intermediates Marl And that bears. folks they're business look the the with there Composites facility, the they're structure, business business, technical business, and would embedded majority is the part those all the cost be expectation cost costs the load go sold. SG&A the would businesses when the

In businesses in the of results businesses. include the we million. these HR office the that finance the a that allocates and $XX addition things other each for the back about a adjusted it in two those resource with corporation $XX corporation results IT things are perspective the that, that to year million supports businesses And to and aggregate like And you all course a call that, group at legal look and and from required. if for these the or of publish,

how from with say, done that unusual it if the $XX the a and the that cost, when exactly stranded the way, could we've that. much we've still the cost become to lot determine that's $XX deal not will But to it in driving of all operating will typically this whole, the past, for and with million allocation, So, got allocated have million million we difficult cost stranded let's of of again, that these also fully that the kind And think a in of on a form think business. well portion around of costs of businesses loaded that's we're as a be allocate process that whatever we for early to cost today. less depend those transfer Presuming you and that will sale keep the But transaction wouldn't the reporting the of direct of the the we're be be $XX income of and transfer want EBITDA with of go will at remaining the businesses, and managed of the thumb, because that certainly, rule will to the and business, has perspective. more, those SG&A that a third all business. transfer transfers very out. transactions for the with more transfer Again, a does to stranded to business historically,

at And program. remainder to the clear, expect ASI not then, holistically very looking a right-size will we're LLC And cost not committing Suisse cost, improvement business the one be million what of distinct overall we manage the within the also does to that separate programs, happen. we're this but be you Parkinson and once do. so, And That's with transaction to that's Christopher much. drive Credit from of only opportunity to $XX remaining it's of S. that stranded (USA) earnings as Thank separate to helpful. part structure our the - Securities

William A. Wulfsohn

Sure.

Operator

comes next And UBS. you. Thank question our John Roberts from with

Your is now line open.

John Roberts

Thank me? hear you you. Can

William A. Wulfsohn

can. Good John. we Sure, morning,

J. Kevin Willis

John. morning, Good

John Roberts

What be Marl the I&S normal would the tax and new facility? or without rate Yeah. for Composites Ashland

J. Kevin Willis

Marl the rate would effective elusive a Still would working from perspective weighted tell this income of as a to perspective a expect business business to cause I to tax for would tax is Composites On geography rate the don't basis, the but Ashland I higher. be go transaction. remaining you through need average the mix matters. result that down about a and What be from particularly it, and that modeling we

our are Composites obviously based a down. presumes little the get portfolio we will, We expect transaction the the directionally, estimate further full-year, rate in an best once an that tax on numbers on the that and have remain provide for provide full-year But the likely this, Marl that, we'll the little But which businesses go for timeline. we'll more The the certainly clarity a we update. on pike fully they will and down update.

John Roberts

too? Okay. there, equal contributed or in partly to any related And the Was like that you I that then, have that, growth such businesses. order you patterns rate had essentially to growth nutrition anything in high and your high pharma also in think you mentioned high order there equally or growth patterns nutrition had very almost you but pharma, allowed had

William A. Wulfsohn

– in really our asset which Well, MC, utilization product I are CMC We've some forth, and also with so Klucel has into we've to the for the but would pharma. demand that's, move of programs had pattern. pent-up our and different kind dynamics on of say they're and that overlap, improved marketplace; bit a forward our if there's moved you will, output as little order more the enabled and us products,

to is focus that nutrition capacity, As the debottlenecking it now but across but also driving is – system, a quite relates the there attractive focused volume, compelling. capacity in are on and in leverage to of are program a if economics additional the also that it capacities terms that in business, our is leveraging our assets, volume that we you true area of have

So, it. I are it program the we to of as effectiveness and that asset in common theme the one The think different. the relates have is that's dynamics importance would utilization

John Roberts

Thank Okay. you.

William A. Wulfsohn

you. Thank

Operator

our next Alexander And you. from question with Jefferies. comes Thank Laurence

line is Your open. now

Laurence Alexander

the roughly of (XX:XX:XX) year coming much the about XXXX morning. cash with how restructuring is XXXX? of bridge? and in cost you divestiture it. have Did much the exiting missed program specify through how is that think Good EBITDA this might And I the

William A. Wulfsohn

Yeah.

Laurence Alexander

growth rates? versus how where effects the little you about that your and utilization demand speak Energy Construction, saw mix up can of a picking XX% end-market and secondly, for And much that you leaves volume low in bit was

J. Kevin Willis

bit I'll in I cost a answer, terms very first. take unsatisfying Laurence, piece the Yeah, think out And of process. an in but we're the perhaps early

and think would in can to past, And of this about on comes for exiting, as and remains And, Lima, tend cost, business, cost the depend, much XX% be in do terms is BDO full-year. the for a we as a that. typically will – would that And tell the range with would ultimately a range. see that $X, what of from ultimate I amount Marl same of that's the achieve to sale. And our Lima that's also have Ohio exclusively has that piece the program the managed primarily the for straightforward XX,XXX $X.XX businesses and capacity if in internally is has will production fall produce, a out facility. that, of And what the Intermediates the I And you look know, I the transferred cash standpoint $X to comes an that drive to use is to presuming is you been that out into you range after we so, facility. still I whatever out, Composites cost is is, that question. the savings. guess, the estimate XX% capacity we've would out of Composites Solvents pretty the is on be the ton expect typically, these that, And a EBITDA pretty that the Marl amount we XXX,XXX ton way which degree, to open to at plant from managed that around again, What executed programs cash that's range you historically full-year

as do really math, you The the goes any of that internally. as We So, as that to use parties. think a EBITDA much Marl likely exiting volume fully well. I can result at of arrive allocated pretty you be third don't the that exclusively would

that So, can easily. you model pretty think, I

buyer be ultimately piece what – stand-up sale in a the I of organization. of the by equation selling be buyer presuming the total other be cost buyer, be is, would that again, – and new believes what the will to terms type determined the the of in think, will "EBITDA" and

William A. Wulfsohn

also that secondly, growth then, and And around it Performance as to includes relates Specialty Construction, well. our as your Energy question

we the positive from chance with to China meet I've over demand is India, throughout And teams a markets. of variety I'd that in a and, in the travel the a had Europe last general, it's and Singapore, say environment – and quarter, there So, standpoint.

say, think that I asset better can I it's looking of absorb, fairly especially you will, profitable utilization, business, we're to be tend focused markets so, those driving again, extra And and once pieces at Energy if in business where capacity. would on Construction, but broad-based.

I think growth of signs of in So, the you're those seeing work that some coming markets spaces. in through

Laurence Alexander

great. Okay, Thanks.

William A. Wulfsohn

Thank you.

Operator

from you. And question with comes Thank your Begleiter Bank. next David Deutsche

open. is line Your now

David I. Begleiter

Thanks. Good morning.

William A. Wulfsohn

morning. Good

David I. Begleiter

you Bill, price material on ASI do to to increases announce need additional raw pricing, achieve your parity costs? with

William A. Wulfsohn

have Yeah. them. ongoing, I are mean, price increase of we we a that a variety completed efforts lot of

And the – obviously, would up context. that, come seen so, and to say very pricing relative inflation we actions we've we as contracts about we'll this up, point. the feel material to that adjustments integrate raw pricing in pricing good I

As seen a prices just few even you we've bit material weeks. around, of raw little over know, volatility move can last the

go And more out for we so, materials, we'll raw ultimately, push see have and to an again I if price. in increase think,

to don't a but I the do that this on progress good making feel think So, we come we're it. is close, about something will very

David I. Begleiter

versus year on Pharmachem, sales up ago? were And a

William A. Wulfsohn

believe here. year ago. look they, down they versus I I the we'll and So, history a But were at believe

associated with it. in really exit We And to about drive of focus we customer did trying no EBITDA that we relatively as sales, but profitable facility a the had which more some just talked mix. before, is so, on that mix, Utah, significant a

really business. so, focused mix and on earnings the of we're the And the

all. And that's so,

J. Kevin Willis

that that was bought facility, to actually part think of business, when early relative we would the on. pretty the it's to and I – do of one need Utah things we plan the And

Frankly, amount of And accounting and would done. the through that purchase goodwill which that sell likely much so, property reduce we've pretty that's that on to executed booked. we're and we've flow

William A. Wulfsohn

also moving the – I'd Klucel, which Klucel through sage, one affecting Care Personal just thing. that same our really clary it's sales of marketplace; Pharmachem the we're with add is business; And aspect being aloe, that's getting their sold that

production our some is helping with biofunctional And us growth. of their capacity

contribution major a making it's us. So, for

J. Kevin Willis

into which the and more integrated business, Ingredients overall point. more the And becoming Specialty is

David I. Begleiter

Thank good. Very you.

Operator

And you. question from comes Thank Sison next Mike KeyBanc. with our

now is line Your open.

Michael J. Sison

And terms Hey, is a ASI, look in you getting maintaining What second how half, sequentially. that second half guys, the you as do you does stronger quarter. year? bit growth the as of it the up momentum, we little – organic into picked are head head into nice think the it of

William A. Wulfsohn

in gain, sales certainly drive initiatives Well, that share we've themselves. gain, the put sustain to place

We will in how second strong of where do the the year architectural one that always see points seasonal to I we you of normal is, pattern we our this half year. have season, the that season. as increased coating a sales fiscal we say start of the see demand around time be, the And would point that good patterns

with last we'll kind quarters and mix a to so, we trying better growth. a of season And that certainly drive something few I profitable give over the through as volume more forward. as past clarity that the think, drawdown of the greater the go is on we move and But consistent, it's

Michael J. Sison

if more it's savings year. growth Okay. get growth then get early, ASI a And mentioned next little year, how EBITDA think And a then, strong outlook next you'll year I a about you cost for organic pretty add you apologize much. of I but decent bit chunk the if ASI. next to know guess, you to I

J. Kevin Willis

past Yeah, in the seen expectation cost that the be the out be growing you've with terms out the of piece. I'll would that the would of what certainly – certainly in with address it benefit early efforts line see and the year And throughout programs. we year cost our in

on also continued intent volumes things and manufacturing the and is utilization which momentum benefits our that I getting it the would it the leverage that of eliminates growth margin distraction organic better be the to get think point asset our footprint, to both can and to that and It growing more terms so, of good of from we building certainly business while possible. do obviously business, done enhanced continuing and around frankly that the And to bring. contribution fronts. the And process, as in as quickly that'd

we've been what certainly on it. doing to it would continue So, and be our grow to intent

Michael J. Sison

Great. Thank you.

J. Kevin Willis

(XX:XX:XX).

Operator

question Thank you. James comes our from And SunTrust. with Sheehan next

now open. is line Your

James Sheehan

Thank you my question. taking for

you Klucel expand that increased the the much could capacity? fill on also talk how On you to how you about expect quickly expansion, and capacity

William A. Wulfsohn

Sure.

capacity of the to roughly ultimately additional on original need some look independently. to it operate would in allow the vessels would important capacity. capacity. you the equipment investments And an might about to how terms fully investment increase that the make reactor few So, versus ancillary ancillary what enable to beginning terms XX% equipment, double to the how two capacity. of base at that in a would Basically, be us in the made of to mean order get already is with in capital And quickly, but we'd that of we're

We more couple the now been sales years in a have been where go say, capacity limited. we've not because been with team out really of and our to Klucel for go push for we've able situation sales

so, course increase, the rate to months. the the of, of I'll next going And over I to nine find we're the think say, six

James Sheehan

businesses thoughts your back shares of still lower that's before valued that the think that and valuation And due Thank to pretty some the doing more your and you're I at relative divestitures? commodity just of here, to probably some you. What about share fact buying are your price here attractively looking your multiple. peers the

J. Kevin Willis

accretive authorization what's the sides the terms look at have And about certainly business about fits been in sure, the in But, of it. is more really we share of from of to to the idea and of overall process, Well, the $X that the so. on worth as We've think something keen equation repurchase going do in past. years we're strategy. done past several what billion it both we've to for the the we

not shy we're our are space shares believe strongly we something other about lot upside companies certainly that undervalued. the and correct, compared of doing. the of it's to understand in you're certainly a so stock. And And in the And

James Sheehan

Thank you.

J. Kevin Willis

Sure.

Operator

you. question Longbow Research. comes next Silversteyn from Thank And with our Dmitry

open. Your line is now

Dmitry Silversteyn

call under Good belt. getting and for morning. Thank congratulations taking on another you your nice quarter my

William A. Wulfsohn

morning. good and you Thank

Dmitry Silversteyn

A question follow-up. a and

back-end of had that on some excess does what's an look understand made on in cellulosic First the to for of all, with can you you getting difficulty the update Have get up? pricing efforts capacity. I going because how market any year? that it us the was of your or area progress pricing you

William A. Wulfsohn

sure. be competitive Sure, product pricing little other value as the additional functionality, regions think do we identified, the are those comments, in a we that, allows add to is more really referenced where talk of portion move earlier front. in ability what additional into where right appropriately. during that that a us the as areas that, be premium just really fits But my And I marketplace which bit on some a value parts we're more to also customer where In significant a can have little what work the to to to I you some point. we supply-demand consider we've adding we at proposition we the the but getting market, with seems it's competitors, mentioned, to to of general bit seen other tighter about

progress. that we a do. There's good we're pushing feel more we've always think progress So, and and about I of lot made to

Dmitry Silversteyn

just for kind of for and and April the results the an is then, And helpful. that lot see step environment, at coming end and not disappointment in first here macro European people of a strong what year. quarter growth a that terms some as kind were the business? some looking back concern European products for the taking as into in Obviously, That's implies There maybe of you How expected. for Okay. and outlook you of premier your geographies do your go area. important European it's about market

look at the of seeing the you can do you're for economic now year? balance the European that what and the landscape, of how in talk and what you see you as quarter you saw So, sort about

William A. Wulfsohn

growth products. region for and where obviously area us a an that area that's value we significant sell been has Well,

being So, it's remainder would of don't problematic, And actually a will been area. expect economic we fundamental we a the anticipate very in unless to so. growth year nice see that, change, there's through the that we'll region, grow it as grow the continue we we that with

Dmitry Silversteyn

Okay.

your may whatever versus basically, own slowdown expectations? should initiatives So, we there see overcome slight

J. Kevin Willis

really the to a the continuing through I has the well. first of year, balance into that be future and applaud overall initiatives results. of And obviously but not they've really executing stronger execution around the has Yeah. as done contributor very the nice European of the that for work them only throughout year specific a the team mean, strong I the to done half job plans and

Dmitry Silversteyn

Thank you. Okay.

Operator

turn any like not I'd I'm to time. you. showing Thank for this now at Seth Mrozek further questions back to the call further any remarks.

Seth A. Mrozek

Thank interest to your Ashland. in forward morning Thank this look speaking for you. with and you, all your you We Grace. time

Operator

today's concludes in gentlemen, you conference. This program. for participating today's Ladies thank and

You Everyone day a great may disconnect. all have

Seth A. Mrozek	Ashland Global Holdings, Inc.
William A. Wulfsohn	Ashland Global Holdings, Inc.
J. Kevin Willis	Ashland Global Holdings, Inc.
Christopher S. Parkinson	Credit Suisse Securities (NYSE:USA) LLC
John Roberts	UBS Securities LLC
Laurence Alexander	Jefferies LLC
David I. Begleiter	Deutsche Bank Securities, Inc.
Michael J. Sison	KeyBanc Capital Markets, Inc.
James Sheehan	SunTrust Robinson Humphrey, Inc.
Dmitry Silversteyn	Longbow Research LLC

Ashland (ASH) 2 May 182018 Q2 Earnings call transcript