Cabot Corp Reports Fourth Quarter and Fiscal Year 2024 Results
Cabot (NYSE: CBT) reported strong fourth quarter and fiscal year 2024 results. Q4 Diluted EPS reached $2.43 with Adjusted EPS of $1.80, representing a 9% increase year-over-year. Fiscal year 2024 showed impressive performance with Diluted EPS of $6.72 and Adjusted EPS of $7.06, marking a 31% increase from the previous year. The company generated $692 million in operating cash flow, enabling $241 million in capital investments, $93 million in dividends, and $172 million in share repurchases. Notable achievements include reaching the top end of their 2021 Investor Day target for Adjusted EPS CAGR and securing a $50 million DOE award for a battery-grade carbon nanotubes facility.
Cabot (NYSE: CBT) ha riportato risultati robusti per il quarto trimestre e per l'anno fiscale 2024. L'EPS diluito del Q4 ha raggiunto $2.43, con un EPS rettificato di $1.80, che rappresenta un incremento del 9% rispetto all'anno precedente. L'anno fiscale 2024 ha mostrato una performance impressionante con un EPS diluito di $6.72 e un EPS rettificato di $7.06, segnando un aumento del 31% rispetto all'anno scorso. L'azienda ha generato $692 milioni in flusso di cassa operativo, permettendo investimenti in capitale pari a $241 milioni, dividendi per $93 milioni e riacquisti di azioni per $172 milioni. Tra i traguardi notevoli vi è il raggiungimento del target massimo per la crescita annuale composta dell'EPS rettificato fissato nel 2021 durante il Investor Day e l'assegnazione di un premio di $50 milioni dal DOE per una struttura di nanotubi di carbonio di grado batteria.
Cabot (NYSE: CBT) informó resultados sólidos para el cuarto trimestre y el año fiscal 2024. El EPS diluido del cuarto trimestre alcanzó $2.43 con un EPS ajustado de $1.80, lo que representa un aumento del 9% interanual. El año fiscal 2024 mostró un desempeño impresionante con un EPS diluido de $6.72 y un EPS ajustado de $7.06, marcando un incremento del 31% respecto al año anterior. La empresa generó $692 millones en flujo de caja operativo, lo que permitió $241 millones en inversiones de capital, $93 millones en dividendos y $172 millones en recompras de acciones. Los logros notables incluyen alcanzar el extremo superior de su objetivo de CAGR de EPS ajustado para el Día del Inversor de 2021 y asegurar un premio de $50 millones del DOE para una instalación de nanotubos de carbono de grado batería.
Cabot (NYSE: CBT)는 2024년 4분기와 회계 연도에 대한 강력한 실적을 보고했습니다. 4분기 희석주당순이익(EPS)은 $2.43에 도달했으며, 조정주당순이익은 $1.80로, 전년 대비 9% 증가했습니다. 2024 회계 연도는 희석 EPS가 $6.72, 조정 EPS가 $7.06을 기록하며 전년 대비 31% 증가하는 인상적인 성과를 보였습니다. 회사는 $692 백만 달러의 운영 현금 흐름을 창출하여 $241 백만 달러의 자본 투자, $93 백만 달러의 배당금 및 $172 백만 달러의 자사주 매입을 가능하게 했습니다. 주요 성과로는 2021 투자자 회의에서 설정한 조정 EPS CAGR 목표 상한에 도달한 것과 배터리 급 탄소 나노튜브 시설을 위한 $50 백만 달러의 DOE 보조금을 확보한 것이 있습니다.
Cabot (NYSE: CBT) a annoncé de solides résultats pour le quatrième trimestre et l'exercice fiscal 2024. Le BPA dilué du Q4 a atteint 2,43 $, avec un BPA ajusté de 1,80 $, représentant une augmentation de 9 % par rapport à l'année précédente. L'exercice fiscal 2024 a affiché des performances impressionnantes avec un BPA dilué de 6,72 $ et un BPA ajusté de 7,06 $, marquant une hausse de 31 % par rapport à l'année précédente. L'entreprise a généré 692 millions de dollars de flux de trésorerie opérationnel, permettant ainsi 241 millions de dollars d'investissements en capital, 93 millions de dollars de dividendes et 172 millions de dollars de rachats d'actions. Parmi les réalisations notables, citons l'atteinte du plafond de leur objectif de croissance annuelle composée (CAGR) du BPA ajusté pour la journée des investisseurs de 2021 et l'obtention d'une subvention de 50 millions de dollars du DOE pour une installation de nanotubes de carbone de qualité batterie.
Cabot (NYSE: CBT) hat starke Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 vorgelegt. Der verwässerte Gewinn je Aktie (EPS) des Q4 erreichte $2,43, während der bereinigte EPS bei $1,80 lag, was einem Anstieg von 9 % im Vergleich zum Vorjahr entspricht. Im Geschäftsjahr 2024 zeigte das Unternehmen eine beeindruckende Leistung mit einem verwässerten EPS von $6,72 und einem bereinigten EPS von $7,06, was einem Anstieg von 31 % gegenüber dem Vorjahr entspricht. Das Unternehmen generierte $692 Millionen an operativem Cashflow, was $241 Millionen für Investitionen, $93 Millionen an Dividenden und $172 Millionen für Aktienrückkäufe ermöglichte. Zu den bemerkenswerten Errungenschaften gehört das Erreichen der oberen Zielmarke für die CAGR des bereinigten EPS von ihrem Investorentag 2021 und die Sicherung eines Preises in Höhe von $50 Millionen vom DOE für eine Anlage zur Herstellung von batteriefähigen Kohlenstoffnanoröhren.
- 31% increase in FY2024 Adjusted EPS to $7.06
- Strong operating cash flow of $692 million in FY2024
- Segment EBIT growth: 11% in Reinforcement Materials, 31% in Performance Chemicals
- Secured $50 million DOE award for CNT facility
- Achieved 12% Adjusted EPS CAGR, reaching top of target range
- Generated $1.2 billion in Discretionary Free Cash Flow over 3 years
- Q4 Reinforcement Materials EBIT decreased by $11 million
- Lower volumes in Americas due to weather-related events
- Decreased production levels due to higher tire imports from Asia
Insights
Strong financial performance showcased in Cabot's Q4 and FY2024 results with
The
The geographical performance data reveals strategic challenges and opportunities. While Asia Pacific and EMEA regions showed positive volume growth at
The Performance Chemicals segment's improved results, driven by automotive and electronics demand, indicates successful market positioning in high-value sectors. The upcoming commercial-scale CNT facility positions Cabot advantageously in the growing EV supply chain.
Fourth Quarter 2024 Diluted earnings per share (“EPS”) of
Fiscal Year 2024 Diluted EPS of
Fiscal Year Highlights
-
Fiscal year Diluted EPS of
and Adjusted EPS of$6.72 , which represents a$7.06 31% increase in Adjusted EPS year over year, driven by EBIT growth in both segments -
Fiscal year segment EBIT increased
11% in Reinforcement Materials and31% in Performance Chemicals year-over-year -
Fiscal year 2024 Cash Flows from Operations of
enabled capital investments of$692 million and the payment of$241 million in dividends and$93 million in share repurchases during the fiscal year$172 million - Achieved the top end of our 2021 Investor Day target range for Adjusted EPS CAGR and exceeded cumulative Discretionary Free Cash Flow (DFCF) target
Fourth Quarter Highlights
-
Fourth Quarter Diluted EPS of
and Adjusted EPS of$2.43 , which represents a$1.80 9% increase in Adjusted EPS compared to the same quarter in the prior year and includes a benefit from a lower operating tax rate -
Cash Flows from Operations of
in the fiscal fourth quarter supported the return of$204 million of cash to shareholders in the quarter through a combination of share repurchases and dividends$90 million -
Selected by the
U.S. Department of Energy (DOE) for a award to build the first commercial-scale facility for battery-grade carbon nanotubes (CNTs) and conductive additive dispersions in the$50 million U.S. ; final terms expected to be negotiated by January 2025
(In millions, except per share amounts) |
Three Months Ended |
Twelve Months Ended |
|||||||
|
9/30/24 |
9/30/23 |
9/30/24 |
9/30/23 |
|||||
|
|||||||||
Net sales and other operating revenues |
$ |
1,001 |
$ |
965 |
$ |
3,994 |
|
$ |
3,931 |
Net income (loss) attributable to Cabot Corporation |
$ |
137 |
$ |
234 |
$ |
380 |
|
$ |
445 |
|
|
|
|
|
|||||
Net earnings (loss) per share attributable to Cabot Corporation |
$ |
2.43 |
$ |
4.10 |
$ |
6.72 |
|
$ |
7.73 |
Less: Certain items after tax per share |
$ |
0.63 |
$ |
2.45 |
$ |
(0.34 |
) |
$ |
2.35 |
Adjusted EPS |
$ |
1.80 |
$ |
1.65 |
$ |
7.06 |
|
$ |
5.38 |
Sean Keohane, Cabot President and Chief Executive Officer commented: "I am pleased to end the fiscal year with a solid fourth quarter with Adjusted EPS of
Keohane continued, “In addition, we successfully achieved our 3-year corporate financial targets that were set at our 2021 Investor Day, which were an Adjusted EPS CAGR of
Financial Detail
For the fourth quarter of fiscal 2024, net income attributable to Cabot Corporation was
Segment Results
Reinforcement Materials – Fourth quarter fiscal 2024 EBIT in Reinforcement Materials decreased by
Global and regional volume changes for Reinforcement Materials for the fourth quarter of fiscal 2024 as compared to the same quarter of the prior year are set forth in the table below:
|
Fourth Quarter Year-over-Year Change |
||
Global Reinforcement Materials Volumes |
( |
||
|
|
||
|
|
||
|
( |
Performance Chemicals – Fourth quarter fiscal 2024 EBIT in Performance Chemicals increased by
Cash Performance – The Company ended the fourth quarter of fiscal 2024 with a cash balance of
Taxes – During the fourth quarter of fiscal 2024, the Company recorded a tax benefit of
Outlook
Commenting on the outlook for the Company, Keohane said, “Looking ahead to fiscal 2025, we expect Adjusted EPS to be in the range of
Keohane concluded, “We believe our global scale, broad geographic footprint, and foundation of operational excellence will continue to drive earnings growth and strong cash flow generation. We will continue our track record of employing a disciplined and balanced approach to capital allocation and remain committed to our investment grade credit rating. We look forward to sharing more about our company strategy, key growth initiatives, sustainability leadership and our next set of long-term financial targets at our upcoming Investor Day on December 4, 2024, in
Earnings Call
The Company will host a conference call with industry analysts at 8:00 a.m. Eastern time on Tuesday, November 5, 2024. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com
About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in
Forward-Looking Statements – This earnings release contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2025, including our expectations for growth in our businesses and for Adjusted earnings per share for fiscal 2025, our expectations for capital allocation and operating cash flow and discretionary free cash flow for fiscal 2025, our expectations for finalizing the terms of our DOE award, and our expected operating tax rate for fiscal 2025 are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, industry capacity utilization and competition from other specialty chemical companies; safety, health and environmental requirements and related constraints imposed on our business; regulatory and financial risks related to climate change developments; volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of
Use of Non-GAAP Financial Measures
To supplement Cabot’s consolidated financial statements presented on a generally accepted accounting principle (“GAAP”) basis, the preceding discussion of our results and the accompanying financial tables report Adjusted EPS, Total Segment EBIT, Total Segment EBITDA, Adjusted EBITDA, our operating tax rate, Free Cash Flow and Discretionary Free Cash Flow, all of which are non-GAAP financial measures. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP, and the definitions of these measures may not be comparable to those used by other companies. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Total Segment EBIT, Total Segment EBITDA, and Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow provided by (used in) operating activities, the most directly comparable GAAP financial measure, are provided in the tables titled “Cabot Corporation Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate” and “Cabot Corporation Reconciliation of Non-GAAP Financial Measures.”
Management believes these non-GAAP measures provide investors with greater transparency to the information used by Cabot management in its financial and operational decision-making, allow investors to see Cabot’s results through the eyes of management, and better enable Cabot’s investors to understand Cabot’s operating performance and financial condition.
Adjusted EPS. In calculating Adjusted EPS, we exclude from our net income (loss) attributable to Cabot Corporation items of expense and income that management does not consider representative of the Company’s business operations. Accordingly, reporting earnings on an adjusted basis supplements the GAAP measure of performance and provides additional information related to the underlying performance of the business. For example, certain of the items we exclude are items that we are required by GAAP to recognize in one period that relate to activities extending over several periods or relate to single events that management considers to be unusual and infrequent, although not necessarily non-recurring. We refer to these items as “certain items.” Management believes excluding these items facilitates operating performance comparisons from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis and evaluates the Company’s operating performance without the impact of these costs or benefits. Management also uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes.
The items of income and expense that we exclude from our calculations of Adjusted EPS but that are included in our GAAP net income (loss) per share, as applicable in a particular reporting period, include, but are not limited to, the following:
-
Argentina controlled currency devaluation loss related to the foreign exchange loss from government-controlled currency devaluations on our net monetary assets denominated in the Argentine peso and investment losses related to the utilization of government bond programs established for the settlement of certain foreign payables. - Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations.
- Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business.
- Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes.
- Asset impairment charges, which primarily include charges associated with an impairment of goodwill, other long-lived assets or assets held for sale.
- Charges related to the divestiture of our Purification Solutions business, which include accelerated costs associated with the change in control and employee incentive compensation.
- Benefit from the settlement of a royalty arrangement entered into in connection with the divestiture of our former Specialty Fluids business.
- Gains (losses) on sale of a business.
- Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan.
- Gain associated with the bargain purchase of a business.
Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.
Total Segment EBIT. Total Segment EBIT reflects the sum of EBIT from our two reportable segments. In calculating Total Segment EBIT we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies, certain items and items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to corporate projects and initiatives.
Total Segment EBITDA. Total Segment EBITDA is equal to Total Segment EBIT (as defined above), but further adjusted for depreciation and amortization.
Adjusted EBITDA. Adjusted EBITDA reflects Total Segment EBITDA and is further adjusted for unallocated corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to corporate projects and initiatives.
Free Cash Flow. To calculate “Free Cash Flow” we deduct Additions to property, plant and equipment from cash flow provided by (used in) operating activities.
Discretionary Free Cash Flow. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow provided by (used in) operating activities.
Operating Tax Rate. Our “operating tax rate” is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.
Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.
Explanation of Terms Used
Product Mix. The term “product mix” refers to the mix of types and grade of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business or segment.
Net Working Capital. The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses.
CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | |||||||||||||
Dollars in millions, except per share amounts (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
Net sales and other operating revenues | $ |
1,001 |
|
$ |
965 |
|
$ |
3,994 |
|
$ |
3,931 |
|
|||
Cost of sales |
|
761 |
|
|
740 |
|
|
3,034 |
|
|
3,092 |
|
|||
Gross profit |
|
240 |
|
|
225 |
|
|
960 |
|
|
839 |
|
|||
Selling and administrative expenses |
|
73 |
|
|
69 |
|
|
283 |
|
|
253 |
|
|||
Research and technical expenses |
|
17 |
|
|
14 |
|
|
63 |
|
|
57 |
|
|||
Loss on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|||
Income (loss) from operations |
|
150 |
|
|
142 |
|
|
614 |
|
|
526 |
|
|||
Other income (expense) | |||||||||||||||
Interest and dividend income |
|
7 |
|
|
9 |
|
|
32 |
|
|
31 |
|
|||
Interest expense |
|
(19 |
) |
|
(21 |
) |
|
(81 |
) |
|
(90 |
) |
|||
Other income (expense) |
|
(3 |
) |
|
(3 |
) |
|
(36 |
) |
|
(16 |
) |
|||
Total other income (expense) |
|
(15 |
) |
|
(15 |
) |
|
(85 |
) |
|
(75 |
) |
|||
Income (loss) from operations before income taxes and equity in | |||||||||||||||
earnings of affiliated companies |
|
135 |
|
|
127 |
|
|
529 |
|
|
451 |
|
|||
(Provision) benefit for income taxes |
|
10 |
|
|
118 |
|
|
(111 |
) |
|
28 |
|
|||
Equity in earnings of affiliated companies, net of tax |
|
1 |
|
|
1 |
|
|
6 |
|
|
5 |
|
|||
Net income (loss) |
|
146 |
|
|
246 |
|
|
424 |
|
|
484 |
|
|||
Net income (loss) attributable to noncontrolling interests, net of tax |
|
9 |
|
|
12 |
|
|
44 |
|
|
39 |
|
|||
Net income (loss) attributable to Cabot Corporation | $ |
137 |
|
$ |
234 |
|
$ |
380 |
|
$ |
445 |
|
|||
Diluted earnings (loss) per share of common stock | |||||||||||||||
attributable to Cabot Corporation | $ |
2.43 |
|
$ |
4.10 |
|
$ |
6.72 |
|
$ |
7.73 |
|
|||
Diluted weighted average common shares outstanding |
|
55.2 |
|
|
56.1 |
|
|
55.7 |
|
|
56.5 |
|
CABOT CORPORATION SUMMARY RESULTS BY SEGMENT | ||||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | ||||||||||||||
Dollars in millions, except per share amounts (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Sales | ||||||||||||||||
Reinforcement Materials | $ |
644 |
|
$ |
624 |
|
$ |
2,610 |
|
$ |
2,563 |
|
||||
Performance Chemicals |
|
322 |
|
|
306 |
|
|
1,250 |
|
|
1,225 |
|
||||
Segment sales |
|
966 |
|
|
930 |
|
|
3,860 |
|
|
3,788 |
|
||||
Unallocated and other (A) |
|
35 |
|
|
35 |
|
|
134 |
|
|
143 |
|
||||
Net sales and other operating revenues | $ |
1,001 |
|
$ |
965 |
|
$ |
3,994 |
|
$ |
3,931 |
|
||||
Segment Earnings Before Interest and Taxes (B) | ||||||||||||||||
Reinforcement Materials | $ |
123 |
|
$ |
134 |
|
$ |
537 |
|
$ |
482 |
|
||||
Performance Chemicals |
|
44 |
|
|
36 |
|
|
164 |
|
|
125 |
|
||||
Total Segment Earnings Before Interest and Taxes |
|
167 |
|
|
170 |
|
|
701 |
|
|
607 |
|
||||
Unallocated and Other | ||||||||||||||||
Interest expense |
|
(19 |
) |
|
(21 |
) |
|
(81 |
) |
|
(90 |
) |
||||
Certain items (C) |
|
(3 |
) |
|
(22 |
) |
|
(59 |
) |
|
(29 |
) |
||||
Unallocated corporate costs |
|
(17 |
) |
|
(12 |
) |
|
(68 |
) |
|
(54 |
) |
||||
General unallocated income (expense) (D) |
|
8 |
|
|
13 |
|
|
42 |
|
|
22 |
|
||||
Less: Equity in earnings of affiliated companies, net of tax |
|
1 |
|
|
1 |
|
|
6 |
|
|
5 |
|
||||
Income (loss) from operations before income taxes and equity in | ||||||||||||||||
earnings of affiliated companies |
|
135 |
|
|
127 |
|
|
529 |
|
|
451 |
|
||||
(Provision) benefit for income taxes (including tax certain items) |
|
10 |
|
|
118 |
|
|
(111 |
) |
|
28 |
|
||||
Equity in earnings of affiliated companies, net of tax |
|
1 |
|
|
1 |
|
|
6 |
|
|
5 |
|
||||
Net income (loss) |
|
146 |
|
|
246 |
|
|
424 |
|
|
484 |
|
||||
Net income (loss) attributable to noncontrolling interests, net of tax |
|
9 |
|
|
12 |
|
|
44 |
|
|
39 |
|
||||
Net income (loss) attributable to Cabot Corporation | $ |
137 |
|
$ |
234 |
|
$ |
380 |
|
$ |
445 |
|
||||
Diluted earnings (loss) per share of common stock | ||||||||||||||||
attributable to Cabot Corporation | $ |
2.43 |
|
$ |
4.10 |
|
$ |
6.72 |
|
$ |
7.73 |
|
||||
Adjusted earnings (loss) per share (E) | $ |
1.80 |
|
$ |
1.65 |
|
$ |
7.06 |
|
$ |
5.38 |
|
||||
Diluted weighted average common shares outstanding |
|
55.2 |
|
|
56.1 |
|
|
55.7 |
|
|
56.5 |
|
(A) |
Unallocated and other reflects external shipping and handling fees, royalties, the impact of unearned revenue, discounting charges for certain Notes receivable, and other by-product revenue. | ||
(B) |
Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, royalties, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable. | ||
(C) |
Details of Certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | ||
(D) |
General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items. | ||
(E) |
Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. |
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
September 30, | September 30, | ||||||
Dollars in millions (unaudited) |
|
2024 |
|
|
2023 |
|
|
Current assets: | |||||||
Cash and cash equivalents | $ |
223 |
|
$ |
238 |
|
|
Accounts and notes receivable, net of reserve for doubtful accounts of |
|
733 |
|
|
695 |
|
|
Inventories: | |||||||
Raw materials |
|
150 |
|
|
148 |
|
|
Finished goods |
|
333 |
|
|
374 |
|
|
Other |
|
69 |
|
|
63 |
|
|
Total inventories |
|
552 |
|
|
585 |
|
|
Prepaid expenses and other current assets |
|
97 |
|
|
108 |
|
|
Total current assets |
|
1,605 |
|
|
1,626 |
|
|
Property, plant and equipment |
|
4,082 |
|
|
3,827 |
|
|
Accumulated Depreciation |
|
(2,548 |
) |
|
(2,415 |
) |
|
Net property, plant and equipment |
|
1,534 |
|
|
1,412 |
|
|
Goodwill |
|
133 |
|
|
134 |
|
|
Equity affiliates |
|
23 |
|
|
20 |
|
|
Intangible assets, net |
|
53 |
|
|
60 |
|
|
Deferred income taxes |
|
216 |
|
|
180 |
|
|
Other assets |
|
172 |
|
|
172 |
|
|
Total assets | $ |
3,736 |
|
$ |
3,604 |
|
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
September 30, | September 30, | ||||||
Dollars in millions, except share and per share amounts (unaudited) |
|
2024 |
|
|
2023 |
|
|
Current liabilities: | |||||||
Short-term borrowings | $ |
45 |
|
$ |
174 |
|
|
Accounts payable and accrued liabilities |
|
676 |
|
|
600 |
|
|
Income taxes payable |
|
43 |
|
|
40 |
|
|
Current portion of long-term debt |
|
8 |
|
|
8 |
|
|
Total current liabilities |
|
772 |
|
|
822 |
|
|
Long-term debt |
|
1,087 |
|
|
1,094 |
|
|
Deferred income taxes |
|
42 |
|
|
50 |
|
|
Other liabilities |
|
245 |
|
|
231 |
|
|
Stockholders' equity: | |||||||
Preferred stock: | |||||||
Authorized: 2,000,000 shares of |
|||||||
Issued and Outstanding: None and none |
|
— |
|
|
— |
|
|
Common stock: | |||||||
Authorized: 200,000,000 shares of Issued: 54,430,316 and 55,379,636 shares Outstanding: 54,297,251 and 55,243,804 shares |
|
54 |
|
|
55 |
|
|
Less cost of 133,065 and 135,832 shares of common treasury stock |
|
(3 |
) |
|
(3 |
) |
|
Additional paid-in capital |
|
— |
|
|
— |
|
|
Retained earnings |
|
1,734 |
|
|
1,574 |
|
|
Accumulated other comprehensive income (loss) |
|
(360 |
) |
|
(362 |
) |
|
Total Cabot Corporation stockholders' equity |
|
1,425 |
|
|
1,264 |
|
|
Noncontrolling interests |
|
165 |
|
|
143 |
|
|
Total stockholders' equity |
|
1,590 |
|
|
1,407 |
|
|
Total liabilities and stockholders' equity | $ |
3,736 |
|
$ |
3,604 |
|
CABOT CORPORATION QUARTERLY RESULTS BY SEGMENT | |||||||||||||||||||||||||||||||
Fiscal 2023 | Fiscal 2024 | ||||||||||||||||||||||||||||||
Dollars in millions, | |||||||||||||||||||||||||||||||
except per share amounts (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY | Dec. Q | Mar. Q | June Q | Sept. Q | FY | |||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||
Reinforcement Materials | $ |
643 |
|
$ |
672 |
|
$ |
624 |
|
$ |
624 |
|
$ |
2,563 |
|
$ |
641 |
|
$ |
676 |
|
$ |
649 |
|
$ |
644 |
|
$ |
2,610 |
|
|
Performance Chemicals |
|
286 |
|
|
326 |
|
|
307 |
|
|
306 |
|
|
1,225 |
|
|
285 |
|
|
311 |
|
|
332 |
|
|
322 |
|
|
1,250 |
|
|
Segment sales |
|
929 |
|
|
998 |
|
|
931 |
|
|
930 |
|
|
3,788 |
|
|
926 |
|
|
987 |
|
|
981 |
|
|
966 |
|
|
3,860 |
|
|
Unallocated and other (A) |
|
36 |
|
|
35 |
|
|
37 |
|
|
35 |
|
|
143 |
|
|
32 |
|
|
32 |
|
|
35 |
|
|
35 |
|
|
134 |
|
|
Net sales and other operating revenues | $ |
965 |
|
$ |
1,033 |
|
$ |
968 |
|
$ |
965 |
|
$ |
3,931 |
|
$ |
958 |
|
$ |
1,019 |
|
$ |
1,016 |
|
$ |
1,001 |
|
$ |
3,994 |
|
|
Segment Earnings Before Interest and Taxes (B) | |||||||||||||||||||||||||||||||
Reinforcement Materials | $ |
94 |
|
$ |
122 |
|
$ |
132 |
|
$ |
134 |
|
$ |
482 |
|
$ |
129 |
|
$ |
149 |
|
$ |
136 |
|
$ |
123 |
|
$ |
537 |
|
|
Performance Chemicals |
|
29 |
|
|
28 |
|
|
32 |
|
|
36 |
|
|
125 |
|
|
34 |
|
|
31 |
|
|
55 |
|
|
44 |
|
|
164 |
|
|
Total Segment Earnings Before Interest and Taxes |
|
123 |
|
|
150 |
|
|
164 |
|
|
170 |
|
|
607 |
|
|
163 |
|
|
180 |
|
|
191 |
|
|
167 |
|
|
701 |
|
|
Unallocated and Other | |||||||||||||||||||||||||||||||
Interest expense |
|
(22 |
) |
|
(23 |
) |
|
(24 |
) |
|
(21 |
) |
|
(90 |
) |
|
(22 |
) |
|
(21 |
) |
|
(19 |
) |
|
(19 |
) |
|
(81 |
) |
|
Certain items (C) |
|
(4 |
) |
|
(2 |
) |
|
(1 |
) |
|
(22 |
) |
|
(29 |
) |
|
(42 |
) |
|
(12 |
) |
|
(2 |
) |
|
(3 |
) |
|
(59 |
) |
|
Unallocated corporate costs |
|
(15 |
) |
|
(16 |
) |
|
(11 |
) |
|
(12 |
) |
|
(54 |
) |
|
(17 |
) |
|
(18 |
) |
|
(16 |
) |
|
(17 |
) |
|
(68 |
) |
|
General unallocated income (expense) (D) |
|
4 |
|
|
2 |
|
|
3 |
|
|
13 |
|
|
22 |
|
|
13 |
|
|
15 |
|
|
6 |
|
|
8 |
|
|
42 |
|
|
Less: Equity in earnings of affiliated companies, net of tax |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
5 |
|
|
1 |
|
|
2 |
|
|
2 |
|
|
1 |
|
|
6 |
|
|
Income (loss) from operations before income taxes and | |||||||||||||||||||||||||||||||
equity in earnings of affiliated companies |
|
84 |
|
|
110 |
|
|
130 |
|
|
127 |
|
|
451 |
|
|
94 |
|
|
142 |
|
|
158 |
|
|
135 |
|
|
529 |
|
|
(Provision) benefit for income taxes (including tax certain items) |
|
(20 |
) |
|
(29 |
) |
|
(41 |
) |
|
118 |
|
|
28 |
|
|
(34 |
) |
|
(47 |
) |
|
(40 |
) |
|
10 |
|
|
(111 |
) |
|
Equity in earnings of affiliated companies, net of tax. |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
5 |
|
|
1 |
|
|
2 |
|
|
2 |
|
|
1 |
|
|
6 |
|
|
Net income (loss) |
|
66 |
|
|
82 |
|
|
90 |
|
|
246 |
|
|
484 |
|
|
61 |
|
|
97 |
|
|
120 |
|
|
146 |
|
|
424 |
|
|
Net income (loss) attributable to noncontrolling interests, net of tax |
|
12 |
|
|
7 |
|
|
8 |
|
|
12 |
|
|
39 |
|
|
11 |
|
|
13 |
|
|
11 |
|
|
9 |
|
|
44 |
|
|
Net income (loss) attributable to Cabot Corporation |
$ |
54 |
|
$ |
75 |
|
$ |
82 |
|
$ |
234 |
|
$ |
445 |
|
$ |
50 |
|
$ |
84 |
|
$ |
109 |
|
$ |
137 |
|
$ |
380 |
|
|
Diluted earnings (loss) per share of common stock | |||||||||||||||||||||||||||||||
attributable to Cabot Corporation | $ |
0.93 |
|
$ |
1.29 |
|
$ |
1.43 |
|
$ |
4.10 |
|
$ |
7.73 |
|
$ |
0.88 |
|
$ |
1.49 |
|
$ |
1.94 |
|
$ |
2.43 |
|
$ |
6.72 |
|
|
Adjusted earnings (loss) per share (E) | $ |
0.98 |
|
$ |
1.33 |
|
$ |
1.42 |
|
$ |
1.65 |
|
$ |
5.38 |
|
$ |
1.56 |
|
$ |
1.78 |
|
$ |
1.92 |
|
$ |
1.80 |
|
$ |
7.06 |
|
|
Diluted weighted average common shares outstanding |
|
56.7 |
|
|
56.8 |
|
|
56.5 |
|
|
56.1 |
|
|
56.5 |
|
|
55.8 |
|
|
55.8 |
|
|
55.7 |
|
|
55.2 |
|
|
55.7 |
|
(A) |
Unallocated and other reflects external shipping and handling fees, royalties, the impact of unearned revenue, discounting charges for certain Notes receivable, and other by-product revenue. | ||
|
|||
(B) |
Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, royalties, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable. | ||
|
|||
(C) |
Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | ||
|
|||
(D) |
General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items. | ||
|
|||
(E) |
Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. |
CABOT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | |||||||||||||
Dollars in millions (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
Cash Flows from Operating Activities: | |||||||||||||||
Net income (loss) | $ |
146 |
|
$ |
246 |
|
$ |
424 |
|
$ |
484 |
|
|||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation and amortization |
|
37 |
|
|
37 |
|
|
151 |
|
|
144 |
|
|||
Other non-cash charges (gains), net |
|
(36 |
) |
|
(149 |
) |
|
45 |
|
|
(135 |
) |
|||
Cash dividends received from equity affiliates |
|
1 |
|
|
— |
|
|
2 |
|
|
2 |
|
|||
Changes in assets and liabilities: | |||||||||||||||
Changes in net working capital (A) |
|
39 |
|
|
1 |
|
|
57 |
|
|
97 |
|
|||
Changes in other assets and liabilities, net |
|
17 |
|
|
3 |
|
|
13 |
|
|
3 |
|
|||
Cash provided by (used in) operating activities |
|
204 |
|
|
138 |
|
|
692 |
|
|
595 |
|
|||
Cash Flows from Investing Activities: | |||||||||||||||
Additions to property, plant and equipment |
|
(92 |
) |
|
(78 |
) |
|
(241 |
) |
|
(244 |
) |
|||
Proceeds from sale of business |
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
|||
Other investing activities, net |
|
3 |
|
|
3 |
|
|
6 |
|
|
24 |
|
|||
Cash provided by (used in) investing activities |
|
(89 |
) |
|
(75 |
) |
|
(235 |
) |
|
(214 |
) |
|||
Cash Flows from Financing Activities: | |||||||||||||||
Change in debt, net |
|
(4 |
) |
|
42 |
|
|
(143 |
) |
|
(179 |
) |
|||
Cash dividends paid to common stockholders |
|
(24 |
) |
|
(23 |
) |
|
(93 |
) |
|
(88 |
) |
|||
Other financing activities, net |
|
(61 |
) |
|
(51 |
) |
|
(179 |
) |
|
(136 |
) |
|||
Cash provided by (used in) financing activities |
|
(89 |
) |
|
(32 |
) |
|
(415 |
) |
|
(403 |
) |
|||
Effect of exchange rate changes on cash |
|
— |
|
|
(13 |
) |
|
(57 |
) |
|
54 |
|
|||
Increase (decrease) in cash and cash equivalents |
|
26 |
|
|
18 |
|
|
(15 |
) |
|
32 |
|
|||
Cash and cash equivalents at beginning of period |
|
197 |
|
|
220 |
|
|
238 |
|
|
206 |
|
|||
Cash and cash equivalents at end of period | $ |
223 |
|
$ |
238 |
|
$ |
223 |
|
$ |
238 |
|
(A) |
Includes Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities. |
CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS AND OPERATING TAX RATE | |||||||||||||||
TABLE 1: DETAIL OF CERTAIN ITEMS | |||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | |||||||||||||
Dollars in millions, except per share amounts (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
Certain items before and after income taxes | |||||||||||||||
$ |
— |
|
$ |
(7 |
) |
$ |
(43 |
) |
$ |
(7 |
) |
||||
Global restructuring activities |
|
— |
|
|
(4 |
) |
|
(13 |
) |
|
(4 |
) |
|||
Legal and environmental matters and reserves |
|
(1 |
) |
|
(8 |
) |
|
(2 |
) |
|
(10 |
) |
|||
Acquisition and integration-related charges |
|
— |
|
|
(2 |
) |
|
— |
|
|
(4 |
) |
|||
Gain on sale of land |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|||
Loss on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|||
Other Certain Items |
|
(2 |
) |
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
|||
Total certain items, pre-tax |
|
(3 |
) |
|
(22 |
) |
|
(59 |
) |
|
(29 |
) |
|||
Non-GAAP tax adjustments(A) |
|
37 |
|
|
158 |
|
|
40 |
|
|
161 |
|
|||
Total certain items after tax | $ |
34 |
|
$ |
136 |
|
$ |
(19 |
) |
$ |
132 |
|
|||
Total certain items after tax per share | $ |
0.63 |
|
$ |
2.45 |
|
$ |
(0.34 |
) |
$ |
2.35 |
|
|||
TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM | |||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | |||||||||||||
Dollars in millions, Pre-Tax (unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
Statement of Operations Line Item (B) | |||||||||||||||
Cost of sales | $ |
(3 |
) |
$ |
(6 |
) |
$ |
(15 |
) |
$ |
(10 |
) |
|||
Selling and administrative expenses |
|
— |
|
|
(8 |
) |
|
(1 |
) |
|
(8 |
) |
|||
Other income (expense) |
|
— |
|
|
(8 |
) |
|
(43 |
) |
|
(8 |
) |
|||
Loss on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|||
Total certain items | $ |
(3 |
) |
$ |
(22 |
) |
$ |
(59 |
) |
$ |
(29 |
) |
|||
TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE | |||||||||||||||
Three months September 30 | 2024 |
|
2023 |
|
|||||||||||
Dollars in millions (unaudited) | (Provision) / Benefit for Income Taxes | Rate | (Provision) / Benefit for Income Taxes | Rate | |||||||||||
Effective Tax Rate | $ |
10 |
|
|
-7 |
% |
$ |
118 |
|
|
-93 |
% |
|||
Less: Non-GAAP tax adjustments(A) |
|
37 |
|
|
158 |
|
|||||||||
Operating tax rate (C) (D) | $ |
(27 |
) |
|
20 |
% |
$ |
(40 |
) |
|
27 |
% |
|||
Twelve months ended September 30 | 2024 |
|
2023 |
|
|||||||||||
Dollars in millions (unaudited) | (Provision) / Benefit for Income Taxes | Rate | (Provision) / Benefit for Income Taxes | Rate | |||||||||||
Effective Tax Rate | $ |
(111 |
) |
|
21 |
% |
$ |
28 |
|
|
-6 |
% |
|||
Less: Non-GAAP tax adjustments(A) |
|
40 |
|
|
161 |
|
|||||||||
Operating tax rate (C) (D) | $ |
(151 |
) |
|
26 |
% |
$ |
(133 |
) |
|
28 |
% |
|||
TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FOR FISCAL 2024 and FISCAL 2023 | |||||||||||||||
Fiscal 2024 (E) | |||||||||||||||
Periods ended (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | ||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | |||||||||||||||
Net income (loss) per share attributable to Cabot Corporation | $ |
0.88 |
|
$ |
1.49 |
|
$ |
1.94 |
|
$ |
2.43 |
|
$ |
6.72 |
|
Less: Certain items after tax per share |
|
(0.68 |
) |
|
(0.29 |
) |
|
0.02 |
|
|
0.63 |
|
|
(0.34 |
) |
Adjusted earnings (loss) per share | $ |
1.56 |
|
$ |
1.78 |
|
$ |
1.92 |
|
$ |
1.80 |
|
$ |
7.06 |
|
Fiscal 2023 (E) | |||||||||||||||
Periods ended (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2023 | ||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | |||||||||||||||
Net income (loss) per share attributable to Cabot Corporation | $ |
0.93 |
|
$ |
1.29 |
|
$ |
1.43 |
|
$ |
4.10 |
|
$ |
7.73 |
|
Less: Certain items after tax per share |
|
(0.05 |
) |
|
(0.04 |
) |
|
0.01 |
|
|
2.45 |
|
|
2.35 |
|
Adjusted earnings (loss) per share | $ |
0.98 |
|
$ |
1.33 |
|
$ |
1.42 |
|
$ |
1.65 |
|
$ |
5.38 |
|
(A) |
Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. | ||
|
|||
(B) |
This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations. | ||
|
|||
(C) |
The operating tax rate is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. | ||
|
|||
(D) |
Our operating tax rate for fiscal 2025 is expected to be in the range of |
||
|
|||
(E) |
Per share amounts are calculated after tax. |
CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
Fiscal 2024 (A) | ||||||||||||||||
Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | ||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||
Net income (loss) per share attributable to Cabot Corporation | $ |
0.88 |
|
$ |
1.49 |
|
$ |
1.94 |
|
$ |
2.43 |
|
$ |
6.72 |
|
|
Less: Certain items after tax per share |
|
(0.68 |
) |
|
(0.29 |
) |
|
0.02 |
|
|
0.63 |
|
|
(0.34 |
) |
|
Adjusted earnings (loss) per share | $ |
1.56 |
|
$ |
1.78 |
|
$ |
1.92 |
|
$ |
1.80 |
|
$ |
7.06 |
|
|
Fiscal 2023 (A) | ||||||||||||||||
Dec. Q | Mar. Q | June Q | Sept. Q | FY 2023 | ||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||
Net income (loss) per share attributable to Cabot Corporation | $ |
0.93 |
|
$ |
1.29 |
|
$ |
1.43 |
|
$ |
4.10 |
|
$ |
7.73 |
|
|
Less: Certain items after tax per share |
|
(0.05 |
) |
|
(0.04 |
) |
|
0.01 |
|
|
2.45 |
|
|
2.35 |
|
|
Adjusted earnings (loss) per share | $ |
0.98 |
|
$ |
1.33 |
|
$ |
1.42 |
|
$ |
1.65 |
|
$ |
5.38 |
|
|
(A) Per share amounts are calculated after tax. |
||||||||||||||||
Dollars in millions | Fiscal 2024 | |||||||||||||||
Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | ||||||||||||
Reconciliation of Total Segment EBIT, Total Segment EBITDA and Adjusted EBITDA to Net Income and Segment EBITDA Margin | ||||||||||||||||
Net income (loss) attributable to Cabot Corporation | $ |
50 |
|
$ |
84 |
|
$ |
109 |
|
$ |
137 |
|
$ |
380 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
11 |
|
|
13 |
|
|
11 |
|
|
9 |
|
|
44 |
|
|
Equity in earnings of affiliated companies, net of tax |
|
(1 |
) |
|
(2 |
) |
|
(2 |
) |
|
(1 |
) |
|
(6 |
) |
|
Provision (benefit) for income taxes |
|
34 |
|
|
47 |
|
|
40 |
|
|
(10 |
) |
|
111 |
|
|
Income (loss) from operations before income taxes and equity in earnings of affiliated companies | $ |
94 |
|
$ |
142 |
|
$ |
158 |
|
$ |
135 |
|
$ |
529 |
|
|
Interest expense |
|
22 |
|
|
21 |
|
|
19 |
|
|
19 |
|
|
81 |
|
|
Certain items |
|
42 |
|
|
12 |
|
|
2 |
|
|
3 |
|
|
59 |
|
|
Unallocated corporate costs |
|
17 |
|
|
18 |
|
|
16 |
|
|
17 |
|
|
68 |
|
|
General unallocated (income) expense |
|
(13 |
) |
|
(15 |
) |
|
(6 |
) |
|
(8 |
) |
|
(42 |
) |
|
Less: Equity in earnings of affiliated companies |
|
(1 |
) |
|
(2 |
) |
|
(2 |
) |
|
(1 |
) |
|
(6 |
) |
|
Total Segment EBIT | $ |
163 |
|
$ |
180 |
|
$ |
191 |
|
$ |
167 |
|
$ |
701 |
|
|
Depreciation and amortization excluding corporate depreciation and amortization |
|
35 |
|
|
37 |
|
|
36 |
|
|
36 |
|
|
144 |
|
|
Total Segment EBITDA | $ |
198 |
|
$ |
217 |
|
$ |
227 |
|
$ |
203 |
|
$ |
845 |
|
|
Less: Unallocated corporate costs before corporate depreciation and amortization |
|
17 |
|
|
18 |
|
|
16 |
|
|
17 |
|
|
68 |
|
|
Adjusted EBITDA | $ |
181 |
|
$ |
199 |
|
$ |
211 |
|
$ |
186 |
|
$ |
777 |
|
|
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | |||||||||||
Reinforcement Materials EBIT | $ |
129 |
|
$ |
149 |
|
$ |
136 |
|
$ |
123 |
|
$ |
537 |
|
|
Reinforcement Materials Depreciation and amortization |
|
17 |
|
|
16 |
|
|
16 |
|
|
17 |
|
|
66 |
|
|
Reinforcement Materials EBITDA | $ |
146 |
|
$ |
165 |
|
$ |
152 |
|
$ |
140 |
|
$ |
603 |
|
|
Reinforcement Materials Sales | $ |
641 |
|
$ |
676 |
|
$ |
649 |
|
$ |
644 |
|
$ |
2,610 |
|
|
Reinforcement Materials EBITDA Margin |
|
23 |
% |
|
24 |
% |
|
23 |
% |
|
22 |
% |
|
23 |
% |
|
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | |||||||||||
Performance Chemicals EBIT | $ |
34 |
|
$ |
31 |
|
$ |
55 |
|
$ |
44 |
|
$ |
164 |
|
|
Performance Chemicals Depreciation and amortization |
|
18 |
|
|
20 |
|
|
20 |
|
|
20 |
|
|
78 |
|
|
Performance Chemicals EBITDA | $ |
52 |
|
$ |
51 |
|
$ |
75 |
|
$ |
64 |
|
$ |
242 |
|
|
Performance Chemicals Sales | $ |
285 |
|
$ |
311 |
|
$ |
332 |
|
$ |
322 |
|
$ |
1,250 |
|
|
Performance Chemicals EBITDA Margin |
|
18 |
% |
|
16 |
% |
|
23 |
% |
|
20 |
% |
|
19 |
% |
|
Dollars in millions | Fiscal 2024 | |||||||||||||||
Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activities | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | |||||||||||
Cash provided by (used in) operating activities (B) | $ |
105 |
|
$ |
176 |
|
$ |
207 |
|
$ |
204 |
|
$ |
692 |
|
|
Less: Additions to property, plant and equipment |
|
54 |
|
|
43 |
|
|
52 |
|
|
92 |
|
|
241 |
|
|
Free cash flow | $ |
51 |
|
$ |
133 |
|
$ |
155 |
|
$ |
112 |
|
$ |
451 |
|
|
Plus: Additions to property, plant and equipment |
|
54 |
|
|
43 |
|
|
52 |
|
|
92 |
|
|
241 |
|
|
Less: Changes in net working capital (C) |
|
(46 |
) |
|
21 |
|
|
43 |
|
|
39 |
|
|
57 |
|
|
Less: Sustaining and compliance capital expenditures |
|
33 |
|
|
27 |
|
|
36 |
|
|
60 |
|
|
156 |
|
|
Discretionary free cash flow | $ |
118 |
|
$ |
128 |
|
$ |
128 |
|
$ |
105 |
|
$ |
479 |
|
|
(B) As provided in the Condensed Consolidated Statements of Cash Flows. |
||||||||||||||||
(C) Defined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241101205825/en/
Investor Contact: Steve Delahunt
(617) 342-6255
Source: Cabot Corporation
FAQ
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