John Spector's questions to ASHLAND (ASH) leadership • Q4 2024
Question
John Spector from UBS asked for clarification on whether incremental pricing pressure is expected to offset volume growth in fiscal 2025, and if the mid-single-digit volume growth forecast implies overall organic growth.
Answer
CEO Guillermo Novo confirmed that Ashland expects overall organic growth. He distinguished between two dynamics: outside of China, the company sees strong volumes while managing price/volume trade-offs, particularly in the pharma business. The primary concern is China, where he anticipates potential price and volume pressure from a downturn in the new construction market. Dago Caceres, GM of Specialty Additives, added that any government stimulus in China is not expected to impact demand until 2026 or later, justifying a conservative 2025 forecast.