JP Morgan cuts Ashland profit estimate

25 July 2008 17:02  [Source: ICIS news]

TORONTO (ICIS news)--JP Morgan has lowered its fiscal 2009 earnings per share (EPS) estimate for the combined Ashland-Hercules chemicals company to $3.10, from $3.80 on higher-than-expected amortisation expenses, it said on Friday.

 

The expenses, estimated at $120m (€77m), related to Ashland's $3.3bn acquistion of Hercules, the analysts said.

 

Also, Ashland’s outlook for the current quarter was negative due to weakening US and European demand trends and higher raw material costs, JP Morgan said in an analysis of the company’s fiscal third quarter results.

 

But the analysts also said that Ashland had made material progress in the management of working capital and operating cash flow generation.

 

Global cost reduction efforts were beginning to bear fruit, they added.

 

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($1 = €0.64)

By: Stefan Baumgarten
+1 713 525 2653

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