my Thank that XX. we and the others I'd minutes you, to to our on face are during to Kevin. XXXX. few Please a providing take likely spend like turn industry in challenges Slide
perspective, on macro X drivers. me a From let comment
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is in when front end question for The of companies most will of industry. destocking mind our
Given end be continues end regarding there the of of of to normalization. expectations, demand customer destocking the the the uncertainty the and year recovery back timing
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Please our we plans, Slide analyzed numerous To scenarios. XX. build turn to
As with outlook variable. are the impacting volume being demand and margins, I biggest the big indicated, variables demand
a scenarios significant demand demand during all March the From scenarios during year, scenarios volume insights actions Each the delayed in are the of the greatest for we timing recovery X into provided on is take. No impact outcomes. that quarter. demand perspective, these demand the Primary should results the recovery, and of variation quarter, and demand they recovery June the yield discrete normalization.
midpoint to performance. them cannot You a average
pursue Our position maximize to actions Ashland that objective resilience each to across of these best performance and scenarios. build is
we day, actions, our model innovation investments strategic recent will a drive out and expectations. our At business profitable priorities that XX. growth laid Slide to turn and Please the
segments disciplined underperforming to businesses, and and core that First, have market or investing market high-value and needed technology the address we core leadership, strength where portfolio where those execution not take have our the them technology in to for business are do and across actions not we of leadership. growth
our of some high-value is Second businesses. globalize growth
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our And M&A fourth, and augment leverage our to pharma, capabilities businesses: personal bolt-on to coatings. growth big for care X
cutting costs to turn with In this environment, Let we Please not build execute. the focus resilience will area, me need. Slide start first just XX. the
take volatility targeted performance We reduce risk. more will actions to and
to recovery. more position the -- core businesses will volume reliable operations be to eventual leverage for more our We also
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an From X businesses our our our we businesses. have underperforming that MC-Industrial identified, side, and we've MC, Avoca
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finally, consolidate HEC our rebalance third, our follows: CMC as and business; network. our and is global our MC-Industrial consolidate plan Our first, divest business, business; optimize optimize production second, nutraceutical and
nutraceuticals align model business with a actions business our The is X first and good priorities. business. strategic The
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core we initiatives. assets take to we these our leverage growth opportunities to actions, As will exploring be and these repurpose support
XX. Please turn revenue, completed. EBITDA not portfolio actions to impact impact we're expect The do taking but Slide them to will once we
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$XXX The $XXX sales expected are to million and by be between million. reduced
gross lower which CMC With have Industrial, profit margin. $XX We low million than profit higher, nutraceutical XX% expect impact margins. roughly MC a approximately margin being or very of and gross
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reduced All impact assets basis being to we in As portfolio from sale, XXX and businesses. gross nutraceutical core additional cash increased to assets no actions, offset CapEx, increased working adjusted EBITDA expanded Ashland's flow profit complete resources expect XXX support the our and the this margins from better points, of and we equal, with to capital the to negative XXX result of to points, our XXX return net leverage EBITDA. ability basis free stranded on costs else will and to capital
expect of to We portfolio the end by complete XXXX. the year calendar optimization
XX. Slide to turn Please
and me in at Day: We're As that not profitably in focus lie I ahead, commented, innovate the of [ about and the the Innovation that strategy do area we'll priorities about to and confident to Ashland. need the we excitement near-term grow our acquire business addressed, core future. of but invest challenges be our model second and to discussed they future, our our opportunities which strategic the globalize, ] change brings
win Please our turn Slide to urgency. commitment XX. of these to are passion Each sense a strategy to great invest, of a of to and linked our components
higher-growth, dose pharmaceutical bifunctionals, our of film investing to preservatives, core higher-margin We and injectables, oral globalize solid are businesses, namely coatings.
growth year increase $X these commercial year lines these 'XX across investment in and We expect 'XX. and are and to globe and million product this support adding to efforts our to fiscal than resources invest will in more the technical accelerate in
in pipeline. innovation also We're our investing
markets scalable, accelerate as keen And new core our focus platforms opportunities opportunities. investing of we're as hands in faster. on a accelerate high-impact high-value, commercial both into existing we're within to getting -- For to markets. our by can expand our technologies products the well These markets equally, addressable technologies, customers new commercialization technology end the keeping across market
to more but And to to commercial will pursue the by invest pharma, continuing organically acquiring growth and new grow to we of maintain businesses than personal resources we and opportunities. platforms. technical care our we as in allocation drive enhanced within enhance strategy big bolt-on will million X are capital those core discipline our coatings, pursue new We technology technologies $X
clear. to I want be
we please Now these also to Slide clear, that challenging opportunities our to want ahead. turn be for times we lie but recognize XX. I are recognize the industry, that
future. urgency We commitment to of the and will the to a both, maintain address the the balance moment,
Please turn to XX. Slide
the fiscal I all at bridging to Given dynamics would to high-level provide XXXX. play, like year some items
items. discrete for First,
approximately incentives, year, we and During which merit compensation million. including expense, total will will both $XX the reset
and We managing the commented, impact have performance of scenarios biggest portfolio variables we year, more accelerating actions plant during and plans demand loading and recovery our the the timing the across around optimization performance creating the margin the resilient resulting built previously being of actions.
Slide to turn XX. Please
based is the on likely following: outlook to into of fiscal is half of back-end be year. second business loaded the Our recovery the core
and that we of expect our the be We 'XX into in portfolio pricing layered this models with fiscal Intermediates, will engage impact of year lower in actions stakeholders. as all our
tends Given outlook the prudent of 'XX. overall seasonally fiscal year to a issue our QX quarter. Fiscal year this formal not soft it's uncertainty, feel we be to first do
adjusted our slightly is $XX million. range sales Our stronger EBITDA results the be with for of potential expectations, building the up per risk actions with of in QX in customer expectations, demand, our November $XXX million for than to weaker December. in destocking by million to of This $XX is million, driven range outlook $XXX the year-end outlook and and to October
pricing. Intermediates volumes, quarter impact inventory including carryover some lower production will Lower the and actions,
model, is expect seasonality. we QX prepare to adjusted muted take, the performance. year. above we on scenarios, to full demand demand remain be of the taking given Based a we performance perform so $XXX for could there below scenarios can anticipate across to the range can that given a If sooner can driving earnings 'XX, the color anticipated, are we just range need to actions EBITDA fiscal that that fiscal provide margins across year all is than compensation the recovery this fiscal year, lot that that scenarios what's to occurs If the no scenarios. actions drive we which the reset. drive 'XX, For we recovery million wide we be and is year -- of in demand, these year There's we're that
that to year Intermediates important meaningfully for next be note market earnings likely while core is the It volumes are to perform our to up regionally and well. do pricing, segment down expected lower to are businesses due
updated for provide earnings our We full an year at will the first outlook quarter fiscal call.
XX. our our for Build action to turn closing, approach Please is face by of in Slide year In the uncertainty. on focusing resilience straightforward. of clarity fiscal
appropriate We to operating 'XX allocation fiscal maintain optimizing to will actions This on invest on and more continuing stay perhaps, portfolio, focusing long-term our take our discipline maximize growth to includes strategy our businesses, on and year capital strategy. importantly, performance. core
remain serve your businesses we for leadership of resilience these environment, and Q&A. and our their we of Thank and uncertain if ownership the in the challenging markets Abigail, the Ashland want Despite move to And confident quality thank their could times. again in the for we future. attention. you to team proactive I
