YASTEST
Texas plant back to full
production after Hurricane Harvey, while German facility resumes
normal operations following fire last month
COVINGTON, Kentucky, September 18,
2017 - Ashland (NYSE: ASH) today announced that its manufacturing
facilities in Texas City, Texas, and Marl, Germany, have resumed
normal operations after shutting down last month due to Hurricane
Harvey in south Texas and a previously announced fire at the German
plant.
The Texas City plant - which
produces PVP linear and crosslinked homopolymers, PVP/VA copolymers
and NMP - returned to full production late last week after being
down nearly three weeks due to the impact from the hurricane. Local
staff and a supplemental team of experts from across Ashland
followed a comprehensive recovery plan to ensure all equipment was
safe and in proper working condition prior to restart. Rail service
to the plant is back online, and shipping operations have returned
to normal at the warehouse near the Texas City facility.
Ashland also has seen marked
improvements in the broader shipping, trucking and rail networks,
although some congestion remains and bulk truck capacity is tight
in Texas as plants in the area restart and work through pent-up
demand. The Port of Houston has re-opened, although some delays are
expected, and domestic shipping is improving, particularly for
packaged goods.
"This was an incredible team
effort to help the Texas City plant return to safe and responsible
operations following such a tragic event," said William A.
Wulfsohn, Ashland chairman and chief executive officer. "It's a
testament to the tremendous pride and commitment of everyone
involved, particularly our 180 colleagues in Texas City, many of
whom are facing personal hardship and property losses following the
unprecedented flooding. At the same time, teams from across our
organization - including operations, supply chain, information
technology, environmental, health and safety, and human resources -
have provided critical support and expertise."
Based on current information,
Ashland does not expect the event to have any material impact to
adjusted results in the September quarter.
Marl facility
returns to normal
The Marl plant - which produces
1.4 butanediol (BDO), tetrahydrofuran (THF) and formaldehyde - also
has restarted production ahead of schedule. The company declared a
force majeure in Europe on August 11 as a result of a fire that led
to the shutdown of the plant. Supply of those products in Europe
remains somewhat restricted in the short term as the company works
to rebuild inventory and return to normal operations. Ashland has
been working closely with affected customers to minimize the impact
to their respective businesses during the shutdown and while the
force majeure is in effect.
As a result of the
faster-than-anticipated return to production, Ashland has reduced
its expectation of the financial impact of the fire and subsequent
plant shutdown by approximately $5 million, to an expected impact
of $10-$15 million. As previously stated, given the unusual nature
of the loss, Ashland plans to include the majority of the financial
statement impact from the fire under "key items" when it releases
earnings for the September quarter, therefore having no impact to
adjusted results. However, the lost profitability associated with
any lost sales will impact adjusted results for the Intermediates
& Solvents (I&S) reportable segment. Ashland continues to
expect adjusted EBITDA for the I&S segment to be in the range
of $5-$10 million during the fiscal fourth quarter.
About
Ashland
Ashland Global Holdings Inc.
(NYSE: ASH) is a premier global specialty chemicals company serving
customers in a wide range of consumer and industrial markets,
including adhesives, architectural coatings, automotive,
construction, energy, food and beverage, personal care and
pharmaceutical. At Ashland, we are nearly 7,000 passionate,
tenacious solvers - from renowned scientists and research chemists
to talented engineers and plant operators - who thrive on
developing practical, innovative and elegant solutions to complex
problems for customers in more than 100 countries. Visit
ashland.com to learn more.
C-ASH
Forward-Looking
Statements
This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Ashland has identified
some of these forward-looking statements with words such as
"anticipates," "believes," "expects," "estimates," "is likely,"
"predicts," "projects," "forecasts," "objectives," "may," "will,"
"should," "plans" and "intends" and the negative of these words or
other comparable terminology. Ashland may from time to time make
forward-looking statements in its annual reports, quarterly reports
and other filings with the SEC, news releases and other written and
oral communications. These forward-looking statements are based on
Ashland's expectations and assumptions, as of the date such
statements are made, regarding Ashland's future operating
performance and financial condition, as well as the economy and
other future events or circumstances. Ashland's expectations and
assumptions include, without limitation, internal forecasts and
analyses of current and future market conditions and trends,
management plans and strategies, operating efficiencies and
economic conditions (such as prices, supply and demand, cost of raw
materials, and the ability to recover raw-material cost increases
through price increases), and risks and uncertainties associated
with the following: the impact to the Intermediates and Solvents
segment of the shutdown at the Marl, Germany manufacturing
facility, the impact of Hurricane Harvey at the Texas City, Texas
manufacturing facility, the impact of acquisitions and/or
divestitures Ashland has made or may make, including the
acquisition of Pharmachem (including the possibility that Ashland
may not realize the anticipated benefits from such transactions);
Ashland's substantial indebtedness (including the possibility that
such indebtedness and related restrictive covenants may adversely
affect Ashland's future cash flows, results of operations,
financial condition and its ability to repay debt); the potential
that Ashland does not realize all of the expected benefits of the
separation of its Valvoline business; and severe weather, natural
disasters, cyber events and legal proceedings and claims (including
product recalls, environmental and asbestos matters). Various risks
and uncertainties may cause actual results to differ materially
from those stated, projected or implied by any forward-looking
statements, including, without limitation, risks and uncertainties
affecting Ashland that are described in Ashland's most recent Form
10-K (including Item 1A Risk Factors) filed with the SEC, which is
available on Ashland's website at http://investor.ashland.com or on
the SEC's website at http://www.sec.gov. Ashland believes its
expectations and assumptions are reasonable, but there can be no
assurance that the expectations reflected herein will be achieved.
Unless legally required, Ashland undertakes no obligation to update
any forward-looking statements made in this news release whether as
a result of new information, future events or otherwise.
Information on Ashland's website is not incorporated into or a part
of this news release.
FOR FURTHER INFORMATION:
Investor Relations:
Seth A. Mrozek
+1 (859) 815-3527
samrozek@ashland.com
Media Relations:
Gary Rhodes
+1 (859) 815-3047
glrhodes@ashland.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
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