Ashland (ASH) benefits from healthy demand in most consumer end markets, the Schulke & Mayr acquisition and its pricing and mix improvement actions. That’s a big part of that, however; because of its low volume, low operating costs and its affordability in the US, the company seems to work hard to push through a major upgrade as one of the largest changes from its initial public offering.
Last year, the company acquired the Schulke & Mayr Preferred (SBP) Preferred Plus and has already increased its stake in the company’s preferred partner. Last year, its total sales went up by 6.6%. The company has also added a $2 billion line item to its top line in the form of a $4 billion stake in the company’s preferred partner.
The new plan is part of a major development of the company’s strategy, led by CEO Kevin O’Connor, that also aims to drive the company’s stock to where it is now.