Global additives and specialty ingredients company Ashland expects its sales to be in the range of $2.3 billion to $2.4 billion in fiscal 2023 (FY23), reflecting weaker global demand dynamics. Furthermore, the company expects its adjusted EBITDA to be in the range of $580 million to $610 million due to weaker global end-market demand and inventory-control actions for specific product lines.

Based on current forecasting, continued customer de-stocking and external uncertainties for the second half of the fiscal, Ashland commenced actions in April to reduce inventories in certain product lines for impacted end markets. These inventory-control actions are expected to negatively impact adjusted EBITDA in the second half of the fiscal 2023 by approximately $20 million.

“Although results in our fiscal-second quarter were consistent with expectations, order-pattern dynamics in April indicate that customer de-stocking is continuing,” said Guillermo Novo, chair and chief executive officer, Ashland. “While we expected to gain more clarity on de-stocking and market dynamics during the quarter, weaker-than-expected results over the past month and in certain end markets have created greater uncertainty regarding the de-stocking dynamics.”