Cabot Corp Board Increases Share Repurchase Authorization by 10 Million Shares
Cabot (NYSE: CBT) announced its Board of Directors has authorized the repurchase of up to 10 million additional shares of common stock, bringing the total available shares for repurchase to approximately 11 million. The company plans to execute the repurchases through open market or private transactions using existing liquidity and future free cash flow.
President and CEO Sean Keohane emphasized that this authorization aligns with their 'Creating for Tomorrow' strategy, which focuses on balanced capital allocation between growth investments and shareholder returns through dividends and share repurchases. The authorization has no time limit but can be suspended or discontinued at any time.
Cabot (NYSE: CBT) ha annunciato che il suo Consiglio di Amministrazione ha autorizzato il riacquisto di fino a 10 milioni di azioni aggiuntive di azioni ordinarie, portando il totale delle azioni disponibili per il riacquisto a circa 11 milioni. L'azienda prevede di eseguire i riacquisti attraverso transazioni sul mercato aperto o transazioni private, utilizzando la liquidità esistente e il flusso di cassa libero futuro.
Il Presidente e CEO Sean Keohane ha sottolineato che questa autorizzazione è in linea con la loro strategia 'Creating for Tomorrow', che si concentra su un'allocazione equilibrata del capitale tra investimenti in crescita e rendimenti per gli azionisti attraverso dividendi e riacquisti di azioni. L'autorizzazione non ha un limite temporale, ma può essere sospesa o interrotta in qualsiasi momento.
Cabot (NYSE: CBT) anunció que su Junta Directiva ha autorizado la recompra de hasta 10 millones de acciones adicionales de acciones ordinarias, lo que eleva el total de acciones disponibles para recompra a aproximadamente 11 millones. La compañía planea ejecutar las recompras a través de transacciones en el mercado abierto o transacciones privadas utilizando la liquidez existente y el flujo de caja libre futuro.
El Presidente y CEO Sean Keohane enfatizó que esta autorización se alinea con su estrategia 'Creating for Tomorrow', que se enfoca en una asignación equilibrada de capital entre inversiones en crecimiento y retornos para los accionistas a través de dividendos y recompras de acciones. La autorización no tiene un límite de tiempo, pero puede suspenderse o discontinuarse en cualquier momento.
카봇 (NYSE: CBT)은 이사회가 총 1천만 주의 추가 보통주 매입을 승인했다고 발표했으며, 총 매입 가능한 주식 수는 약 1천1백만 주로 증가했습니다. 이 회사는 기존 유동성과 향후 자유 현금 흐름을 활용하여 공개 시장 또는 사적인 거래를 통해 매입을 실행할 계획입니다.
회장 겸 CEO인 Sean Keohane은 이 승인 사항이 'Creating for Tomorrow' 전략과 일치한다고 강조했습니다. 이 전략은 성장 투자와 배당금 및 주식 매입을 통한 주주 수익 간의 균형 잡힌 자본 할당에 중점을 둡니다. 이 승인에는 시간 제한이 없지만 언제든지 중단되거나 종료될 수 있습니다.
Cabot (NYSE: CBT) a annoncé que son Conseil d'Administration a autorisé le rachat de jusqu'à 10 millions d'actions supplémentaires d'actions ordinaires, portant le total des actions disponibles pour rachat à environ 11 millions. L'entreprise prévoit d'exécuter les rachats par le biais de transactions sur le marché ouvert ou de transactions privées en utilisant la liquidité existante et les flux de trésorerie futurs.
Le Président et CEO Sean Keohane a souligné que cette autorisation est en ligne avec leur stratégie 'Creating for Tomorrow', qui se concentre sur une allocation équilibrée du capital entre les investissements de croissance et les retours pour les actionnaires par le biais de dividendes et de rachats d'actions. L'autorisation n'a pas de limite temporelle mais peut être suspendue ou interrompue à tout moment.
Cabot (NYSE: CBT) gab bekannt, dass der Vorstand den Rückkauf von bis zu 10 Millionen zusätzlichen Aktien genehmigt hat, wodurch die insgesamt für den Rückkauf verfügbaren Aktien auf etwa 11 Millionen steigen. Das Unternehmen plant, die Rückkäufe über den offenen Markt oder private Transaktionen unter Verwendung bestehender Liquidität und künftigen freien Cashflows durchzuführen.
Präsident und CEO Sean Keohane betonte, dass diese Genehmigung im Einklang mit ihrer Strategie 'Creating for Tomorrow' steht, die sich auf eine ausgewogene Kapitalzuweisung zwischen Wachstumsinvestitionen und Renditen für die Aktionäre durch Dividenden und Aktienrückkäufe konzentriert. Die Genehmigung hat keine zeitliche Begrenzung, kann jedoch jederzeit ausgesetzt oder beendet werden.
- Board authorized additional 10 million share repurchase program
- Total shares available for repurchase increased to 11 million
- Company demonstrates confidence in future earnings and cash flow generation
- Program flexibility with no time limit
- Strong liquidity position to support repurchases
- Share repurchases may reduce available capital for business investments
- Program execution dependent on market conditions and management discretion
Insights
The 10 million share increase in buyback authorization represents a significant commitment to shareholder returns, approximately
The company's dual focus on growth investments and shareholder returns through dividends and buybacks demonstrates a balanced capital allocation strategy. With a market cap of
This buyback expansion aligns with broader market trends where companies are increasingly returning excess cash to shareholders. The flexibility in timing and execution method (open market or private transactions) provides strategic advantages in managing capital returns. The decision to retire repurchased shares rather than holding them as treasury stock indicates a permanent reduction in share count, potentially enhancing long-term EPS growth.
The announcement's timing and size suggest management views the current stock valuation as attractive. For specialty chemical companies, substantial buyback programs often indicate management's confidence in sustainable cash generation and need for major capital expenditures in the near term.
“Our ‘Creating for Tomorrow’ strategy is underpinned by a balanced capital allocation framework of investing for advantaged growth and returning cash to shareholders through a combination of dividends and share repurchases. The Board’s actions confirm our commitment to this strategy,” said Sean Keohane, president and chief executive officer. “Returning cash to our shareholders is an important component of our capital allocation framework and this authorization demonstrates our confidence in the expected earnings performance and cash flow generation of our businesses over the coming years.”
The timing and amount of any shares repurchased will be determined by Cabot’s management based on its evaluation of market conditions and other factors. Shares will be repurchased in the open market or in privately negotiated transactions using the Company’s existing sources of liquidity and free cash flow generated in the future. All shares repurchased will be retired and restored to the status of authorized but unissued shares of common stock of the Company. This authorization has no time limit and may be suspended or discontinued at any time.
About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot’s sources of cash to fund its repurchases, and Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
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Investor Contact: Steve Delahunt
(617) 342-6255
Source: Cabot Corporation
FAQ
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