William A. Wulfsohn
and into everyone, Ashland's earnings third thank calling morning you for XXXX Good quarter fiscal call. year
company. important on path our the forwards specialty team step During the the chemicals took Ashland quarter, to becoming, premier
year's on are Day. foremost, and objectives laid during delivering we financial Investor First we out the last
our Secondly, organization. competitive, create specialty a we to leaner, efforts cost in growth-oriented have great more chemicals progress made
business Germany. intended actions with many facility in to Marl, track took our Finally, BDO sale composites of the the on and we stay
deliver on key last you Investor the theme today's on Day Ashland's with The provide to conference strategic are we an will common During progressing we plans at these rapidly we outlined three update is that year. topics. call,
performance XXXX fiscal move into is delivering the on XXXX which let's to So, topic targets. year the first
Investor year's core Day, last deliverables. during recall, will financial three we you As outlined
to to Ingredients first sales. EBITDA increase of XX% The margins was Specialty XX% to
EPS rate least grow a to flow. was per was cumulative growth to by second year. compounded annual of a billion XX% cash at free $X The And the generate third of
ASI's we So, focused to beginning margin on increase four to have the to XX%, EBITDA key XX% adjusted first, areas. with
one The our is GDP to revenue targets. team-based share to growth. new an tools shift, this teams gross value. ASI directly implementing individual's revitalized deliver we plant sales metric To our from first program have shift organic ties plus incentive and a to to also profit that and by changed mix, track share We've to price end, absorption commercial dollar pricing
delivered With taking hold, a other has Ingredients or XX% actions acquisitions excluding these year-over-year on and currency. basis Specialty sales, and year-to-date X%
closer and by solutions to customer's resources Second, innovation to have profit to redesigned our by margins, improve program core we our our to problems. the technologies aligning business leveraging unit gross our provide rapid
For seeing impact example in sales for new skincare increased applications. the ingredients quarter, biofunctional are of strong enhanced from we
and also innovation. organizations drive are combined the Ashland leveraging We Pharmachem to
the introducing to our which customer, we've tablet coating experienced to tablet technologies leading a excipient recently who issue by gains. For example, business customer's has led film Pharmachem additional solve helped and performance also problem,
to tools developed raw initiatives inflation. also have enterprise-wide price through engaged material We and
and of ASI have aggressively Note In we context, inflation. $XX prices. area As part is sales improving that has mix million delivering system. new just team's approximately our on year-over-year the mentioned, incentive a this combination experienced material on raising raw I in a core basis, of of focused year-to-date this
product also put Finally, Klucel approvals. we asset comprehensive in expanding a have area while achieving utilization program. Key actions place include this in key capacity,
growth strong XX% the sales year-to-date. XX% quarter and third we have pharma climbing result, with seen a As in in
our sales to HEC of in as we also plant debottlenecking year. potential beginning is significant QX. mid-single-digit growth their business The show in profit a results realized coatings completed our improvement a are these at project of to Nanjing. our efforts percent have in XXX-basis-point We contributing the in as this gross China ASI's
Thirdly, over in the is QX, adjusted total, XX%. delivered have in moment. of allocations, structure fixed that XX are our more to a taking basis. leveraging reduction we corporate as focused accelerate business a we margins of to strategy lowering finally, SG&A the a more we percent a to speak is of million SG&A sales. Pharmachem points a hold. the was committed on percentage our margin Pharmachem are This basis as And and mix. basis will ASI's I In expansion. Since an our SG&A cost on adjusted sales down with differentiated On of efforts out EBITDA targeting before organization cost the strong roughly $XX contribution acquisition, leaning a of specifically indication
these to XX.X%, of four year-over-year a XXX points on XX result Specialty were the efforts, in quarter a year-to-date approximately and As margins basis points basis. up Ingredients basis EBITDA to
adjusted EPS second deliverable Our is the more XX%, EPS XX%. end, is XX% annually. grow up third investor by increased in and or EPS quarter this a on to To financial core year-to-date, adjusted
on-track core deliverable flow installment of is in free goal to fiscal deliver Day generate of to financial XXXX. Investor over cash billion during the third period. We this our planning The $X year remain first
intend topic get to our will year, Kevin and this going the detail more in lower have later reduced into call. forward. on it debt We fiscal levels substantially this
are Investor making So Day delivering deliverables. towards financial progress we on significant our summary, in
has journey, we structure cost Ashland great creating are the Moving Throughout to a towards team topic, second leaner, progress and multiple growth-oriented initiatives. also more managed customer-centric, the my company. successfully making transformation competitive
aggressive on the size, last of Over our process. approximately sales In details and by effort. as materials we of about we our quarter, our Relations Investor head the the last Composites people, website, our momentum savings the with roughly restructuring growing, or and – of million engage executed time ASI That than the to believe half organic delivered stated cost that XX in reduction the with programs, earnings likely night is margin count and X,XXX to seven said, plans posted organization we in team cost facility has reducing important current side achieve years, BDO the more the of provided $XXX the objectives. now Marl another and timing portion last sale and to
Our accountabilities are clear.
eliminate We objective, the or the business this the stranded BDO will XX% eliminate transfer costs will facility. the of the of To currently need million costs to distributed Composites related Marl segments. of otherwise $XX sale achieve intended to to approximately we and
XXX as direct segment that $XX to its and In upon effort, based after addition, to excluding costs. points, achieve to XX% the margins, eliminate million, we basis path this of Note or But enable sustain sales. is accelerate sales our Specialty current XX% accelerate its levels, will which would Ashland targeted Ingredients this EBITDA at Ingredients' effort and growth. amortization least be important, responsive, approximately in XX% create objective our SG&A to to organization a will leaner, Specialty of equally customer-centric more
change, referenced details deck. As the pace slide we previously outlined important and for the of in scope
In key points like to addition, are there I'd highlight. several
accelerate have of us We timing engaged Bain to help impact redesign. and our the
for additional have of the the defined a every end bringing million by place rate calendar be million path far, and including Ashland's we areas the office, have specific XXXX. those the clear annualized are to $XX Thus targets end every run rate an areas in plant, we've accountability. every We every we all and every quarter. savings annualized line, with of owners $XX December the September Furthermore, in $XX million role, savings achieve XXXX, identified of lab, to in operations, total end product of to put established run by evaluating run rate by
Finally, completed we ready $XXX early redesign achieve the to for million to and beginning expect implementation at November. in full plan least be
where key be decisions. made – administration administrative some are have We possible We'll in closing office quickly and our Lexington, Kentucky. or moving
and from addition, In relocating corporate significantly headquarters our to will Kentucky downsizing Covington be Covington, office. Delaware the we Wilmington,
are significant down will At we our today, all we much and which impact American plans a have severance operations expected opportunity and And of thoughtful Columbus November. Specialty early operation. the same reduction of by to achieve the cost for program enhancing ready designed to a fully be our towards organization ability to approach organization a redesign voluntary will redesigning be objectives we implementation in completed grow are August. Ingredients this launched while at said, Just That time, North taking also our scaling our faster. announced
facility. tie management's actions believe million cost-out the the subject, savings that align to objectives, the we you rate sale couple points. leaving opportunities. fiscal will with XXXX corporate Note the each to will reduction we accrue on quarter the final of of of Initially, a And will the time, have reductions as cost and create $XXX within those and Before effort. a go business Ingredients. costs taken these an Marl And update just to progress. identify expected of achievable related BDO to this incentive be Composites our we further stranded our finally, of will result better to challenged direct reduction same but offset cost a the at team Also, target, aggressive run compensation our Specialty year is savings will much to portion we
portfolio the becoming our specialty are Now premier it that moving evolution, company. clear to committed is to chemicals we
been has work much in area. this So done
complement time, elastomers, non-strategic Tianpu have markets Valvoline, treatment, water excipients. injectable low We the such acquisitions at to including for margin we and Fraction our Zeta Specialty made Pharmachem, portfolio and same as target the have venture, exited joint and biocides, bioabsorbable
shareholders process the shortly. balance $X sheet on returned strengthening will we as to in and approximately Kevin have billion discuss our focused addition, In are
the Now we sale and Composites are facility. on Marl focused BDO the of
sale exposure roughly on goal commodity, of Investor reducing the the will another facility, XX%. we merchant our the by I&S market Day by With Marl BDO to deliver
the actions, point of the are Specialty these of forward. our will we result essentially business a totality going become approaching Ingredients As where
driving critical over QX balance our the financially from to of delivering. the initiatives. results summary, improve additional to terms and to our for I this see Kevin our and regarding a build team our turn now portfolio is details in position. actions, to And momentum, speak and strategic you SG&A as and call So actions lower is can sheet time and will in quarter Ashland, the growth
