Cabot Corp Reports Third Quarter Fiscal 2024 Results
Cabot (NYSE: CBT) reported strong third-quarter fiscal 2024 results, with diluted EPS of $1.94 and Adjusted EPS of $1.92, representing a 35% increase compared to the same quarter last year. The company's performance was driven by:
1. Reinforcement Materials segment EBIT of $136 million, up 3% year-over-year
2. Performance Chemicals segment EBIT of $55 million, up 72% compared to the same quarter in the prior year
3. Cash Flows from Operations of $207 million
4. Net sales of $1,016 million
Cabot raised its fiscal 2024 adjusted EPS guidance range to $7.00 to $7.10, reflecting strong year-to-date results and positive expectations for the fourth fiscal quarter. The company is on track to deliver greater than 30% year-over-year adjusted EPS growth.
Cabot (NYSE: CBT) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2024, con un EPS diluito di 1,94 dollari e un EPS rettificato di 1,92 dollari, segnando un aumento del 35% rispetto allo stesso trimestre dell'anno scorso. Le performance dell'azienda sono state guidate da:
1. EBIT del segmento materiali di rinforzo di 136 milioni di dollari, in aumento del 3% anno su anno
2. EBIT del segmento chimica delle prestazioni di 55 milioni di dollari, in aumento del 72% rispetto allo stesso trimestre dell'anno precedente
3. Flussi di cassa dalle operazioni di 207 milioni di dollari
4. Vendite nette di 1.016 milioni di dollari
Cabot ha alzato l'intervallo di previsione dell'EPS rettificato per l'anno fiscale 2024 a 7,00 a 7,10 dollari, riflettendo risultati forti dall'inizio dell'anno e aspettative positive per il quarto trimestre fiscale. L'azienda è sulla buona strada per un incremento dell'EPS rettificato superiore al 30% rispetto all'anno precedente.
Cabot (NYSE: CBT) informó sobre resultados sólidos para el tercer trimestre del año fiscal 2024, con un EPS diluido de 1,94 dólares y un EPS ajustado de 1,92 dólares, lo que representa un aumento del 35% en comparación con el mismo trimestre del año pasado. El rendimiento de la empresa fue impulsado por:
1. EBIT del segmento de materiales de refuerzo de 136 millones de dólares, un aumento del 3% interanual
2. EBIT del segmento de químicos de rendimiento de 55 millones de dólares, un incremento del 72% en comparación con el mismo trimestre del año anterior
3. Flujos de efectivo de operaciones de 207 millones de dólares
4. Ventas netas de 1.016 millones de dólares
Cabot elevó su rango de guía EPS ajustado para el año fiscal 2024 a 7,00 a 7,10 dólares, reflejando resultados sólidos hasta la fecha y expectativas positivas para el cuarto trimestre fiscal. La empresa está en camino de lograr un crecimiento del EPS ajustado superior al 30% en comparación con el año anterior.
Cabot (NYSE: CBT)는 2024 회계연도 3분기에 대해 희석 EPS 1.94달러 및 조정 EPS 1.92달러를 기록하며 강력한 실적을 보고했습니다. 이는 지난해 같은 분기 대비 35% 증가한 수치입니다. 회사의 성장은 다음에 의해 촉진되었습니다:
1. 강화재료 부문 EBIT 1억 3600만 달러, 전년 동기 대비 3% 증가
2. 성능 화학물질 부문 EBIT 5500만 달러, 지난해 같은 분기 대비 72% 증가
3. 운영 현금 흐름 2억 700만 달러
4. 순 매출 10억 1600만 달러
Cabot은 2024 회계연도 조정 EPS 예상 범위를 7.00 ~ 7.10달러로 상향 조정했으며, 이는 올해 지금까지의 강력한 실적과 4분기 회계 분기에 대한 긍정적인 기대를 반영합니다. 회사는 전년 대비 30% 이상의 조정 EPS 성장을 달성할 것으로 예상하고 있습니다.
Cabot (NYSE: CBT) a signalé de solides résultats pour le troisième trimestre de l'exercice fiscal 2024, avec un EPS dilué de 1,94 USD et un EPS ajusté de 1,92 USD, représentant une augmentation de 35 % par rapport au même trimestre de l'année précédente. La performance de l'entreprise a été stimulée par :
1. EBIT du segment matériaux de renforcement de 136 millions de dollars, en hausse de 3 % d'une année sur l'autre
2. EBIT du segment chimie de performance de 55 millions de dollars, en hausse de 72 % par rapport au même trimestre de l'année précédente
3. Flux de trésorerie d'exploitation de 207 millions de dollars
4. Ventes nettes de 1 016 millions de dollars
Cabot a relevé sa fourchette de prévisions de l'EPS ajusté pour l'exercice fiscal 2024 à 7,00 à 7,10 USD, ce qui reflète de solides résultats depuis le début de l'année et des attentes positives pour le quatrième trimestre fiscal. L'entreprise est en bonne voie pour réaliser une croissance de l'EPS ajusté de plus de 30 % d'une année sur l'autre.
Cabot (NYSE: CBT) berichtete über starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2024, mit einem verwässerten EPS von 1,94 USD und einem bereinigten EPS von 1,92 USD, was einem Anstieg von 35% im Vergleich zum gleichen Quartal des Vorjahres entspricht. Die Leistung des Unternehmens wurde durch Folgendes getrieben:
1. EBIT des Segments Verstärkungsmaterialien von 136 Millionen USD, 3% mehr im Jahresvergleich
2. EBIT des Segments Leistungschemikalien von 55 Millionen USD, 72% mehr im Vergleich zum gleichen Quartal im Vorjahr
3. Cashflows aus dem operativen Geschäft von 207 Millionen USD
4. Nettoverkaufszahlen von 1.016 Millionen USD
Cabot erhöhte seine Prognose für den bereinigten EPS im Geschäftsjahr 2024 auf 7,00 bis 7,10 USD, was starke Ergebnisse im bisherigen Jahresverlauf und positive Erwartungen für das vierte Quartal widerspiegelt. Das Unternehmen ist auf dem besten Weg, ein Wachstum des bereinigten EPS von mehr als 30% im Jahresvergleich zu erreichen.
- Adjusted EPS increased by 35% year-over-year to $1.92
- Performance Chemicals segment EBIT up 72% compared to the same quarter last year
- Cash Flows from Operations of $207 million in the third fiscal quarter
- Raised fiscal 2024 adjusted EPS guidance range to $7.00 to $7.10
- On track to deliver greater than 30% year-over-year adjusted EPS growth
- Net Debt to EBITDA ratio at 1.2x with liquidity of $1.4 billion
- Lower volumes in the Americas due to weather-related events
Insights
Cabot 's Q3 FY2024 results demonstrate robust financial performance. Adjusted EPS of
The cash flow from operations of
The raised FY2024 adjusted EPS guidance of
Cabot's Q3 results reflect positive market dynamics across key segments. The Reinforcement Materials segment's
The Performance Chemicals segment's
Cabot's platinum rating from EcoVadis for the fourth consecutive year positions the company favorably in an increasingly ESG-conscious market. This sustainability leadership could provide a competitive edge and attract environmentally-focused investors, potentially impacting long-term market perception and valuation.
Cabot's Q3 performance underscores its strong position in the specialty chemicals and performance materials sector. The company's ability to deliver growth across segments, particularly in high-value applications, demonstrates its strategic focus and market adaptability.
The rebound in demand for products used in automotive, semiconductor and infrastructure applications is a positive indicator for these industries, suggesting potential broader economic recovery. Cabot's success in these areas highlights its product innovation and ability to meet evolving market needs.
The company's "Creating for Tomorrow" strategy appears to be yielding results, with performance tracking above long-term targets. The planned December 2024 investor day could be a catalyst for the stock, potentially unveiling new growth initiatives and long-term financial targets. Investors should watch for Cabot's ability to maintain its growth trajectory and capitalize on emerging opportunities in sustainable and high-performance materials.
Diluted earnings per share (“EPS”) of
Key Highlights
-
Diluted EPS of
and Adjusted EPS of$1.94 , which represents a$1.92 35% increase in Adjusted EPS as compared to the same quarter in the prior year
-
Reinforcement Materials segment EBIT of
; up$136 million 3% year-over-year
-
Performance Chemicals segment EBIT of
; up$55 million 72% compared to the same quarter in the prior year
-
Cash Flows from Operations of
in the third fiscal quarter supported the return of$207 million of cash to shareholders in the quarter$73 million
-
Awarded platinum rating from EcoVadis for exceptional leadership (top
1% of companies assessed) in sustainability performance for the fourth consecutive year
(In millions, except per share amounts) |
Three Months Ended |
Nine Months Ended |
|||||||||||
|
6/30/24 |
6/30/23 |
6/30/24 |
6/30/23 |
|||||||||
|
|||||||||||||
Net sales and other operating revenues |
$ |
1,016 |
$ |
968 |
$ |
2,993 |
|
$ |
2,966 |
|
|||
Net income (loss) attributable to Cabot Corporation |
$ |
109 |
$ |
82 |
$ |
243 |
|
$ |
211 |
|
|||
|
|
|
|
|
|||||||||
Net earnings (loss) per share attributable to Cabot Corporation |
$ |
1.94 |
$ |
1.43 |
$ |
4.30 |
|
$ |
3.65 |
|
|||
Less: Certain items after tax per share |
$ |
0.02 |
$ |
0.01 |
$ |
(0.95 |
) |
$ |
(0.08 |
) |
|||
Adjusted EPS |
$ |
1.92 |
$ |
1.42 |
$ |
5.25 |
|
$ |
3.73 |
|
Sean Keohane, Cabot President and Chief Executive Officer, commented on the quarter, “I am very pleased that we were able to deliver adjusted EPS of
Keohane continued, “During the third quarter, we delivered operating cash flow of
Financial Detail
For the third quarter of fiscal 2024, net income attributable to Cabot Corporation was
Segment Results
Reinforcement Materials – Third quarter fiscal 2024 EBIT in Reinforcement Materials increased by
Global and regional volume changes for Reinforcement Materials for the third quarter of fiscal 2024 as compared to the same quarter of the prior year are set forth in the table below:
|
Third Quarter
|
Global Reinforcement Materials Volumes |
|
|
|
|
|
|
( |
Performance Chemicals – Third quarter fiscal 2024 EBIT in Performance Chemicals increased by
Cash Performance – The Company ended the third quarter of fiscal 2024 with a cash balance of
Taxes – During the third quarter of fiscal 2024, the Company recorded a tax expense of
Outlook
Commenting on the outlook for the Company, Keohane said, “Given the strong year-to-date results and our expectations for the fourth fiscal quarter, we are raising our adjusted EPS guidance range for fiscal 2024 to
Keohane continued, “With one quarter to go in fiscal 2024, we are on track to deliver greater than
Investor Day
Cabot intends to host an 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, August 6, 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 2024, including our expectations for adjusted earnings per share for fiscal 2024 and the expected performance of our business segments for the remainder of fiscal 2024, our expectations for cumulative discretionary free cash flow and operating cash flow and our uses of such cash, our expected performance against the financial performance objectives we outlined at our Investor Day in December 2021, and our expected operating tax rate for fiscal 2024 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 reserves and matters, 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 June 30 | Three Months |
|
Nine Months |
||||||||||||
Dollars in millions, except per share amounts (unaudited) | 2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales and other operating revenues | $ |
1,016 |
|
$ |
968 |
|
$ |
2,993 |
|
$ |
2,966 |
|
|||
Cost of sales |
|
760 |
|
|
745 |
|
|
2,273 |
|
|
2,352 |
|
|||
Gross profit |
|
256 |
|
|
223 |
|
|
720 |
|
|
614 |
|
|||
Selling and administrative expenses |
|
68 |
|
|
58 |
|
|
210 |
|
|
184 |
|
|||
Research and technical expenses |
|
16 |
|
|
15 |
|
|
46 |
|
|
43 |
|
|||
Loss on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|||
Income (loss) from operations |
|
172 |
|
|
150 |
|
|
464 |
|
|
384 |
|
|||
Other income (expense) | |||||||||||||||
Interest and dividend income |
|
8 |
|
|
7 |
|
|
25 |
|
|
22 |
|
|||
Interest expense |
|
(19 |
) |
|
(24 |
) |
|
(62 |
) |
|
(69 |
) |
|||
Other income (expense) |
|
(3 |
) |
|
(3 |
) |
|
(33 |
) |
|
(13 |
) |
|||
Total other income (expense) |
|
(14 |
) |
|
(20 |
) |
|
(70 |
) |
|
(60 |
) |
|||
Income (loss) from operations before income taxes and equity in | |||||||||||||||
earnings of affiliated companies |
|
158 |
|
|
130 |
|
|
394 |
|
|
324 |
|
|||
(Provision) benefit for income taxes |
|
(40 |
) |
|
(41 |
) |
|
(121 |
) |
|
(90 |
) |
|||
Equity in earnings of affiliated companies, net of tax |
|
2 |
|
|
1 |
|
|
5 |
|
|
4 |
|
|||
Net income (loss) |
|
120 |
|
|
90 |
|
|
278 |
|
|
238 |
|
|||
Net income (loss) attributable to noncontrolling interests, net of tax |
|
11 |
|
|
8 |
|
|
35 |
|
|
27 |
|
|||
Net income (loss) attributable to Cabot Corporation | $ |
109 |
|
$ |
82 |
|
$ |
243 |
|
$ |
211 |
|
|||
Diluted earnings (loss) per share of common stock | |||||||||||||||
attributable to Cabot Corporation | $ |
1.94 |
|
$ |
1.43 |
|
$ |
4.30 |
|
$ |
3.65 |
|
|||
Diluted weighted average common shares outstanding |
|
55.7 |
|
|
56.5 |
|
|
55.8 |
|
|
56.7 |
|
CABOT CORPORATION SUMMARY RESULTS BY SEGMENT | |||||||||||||||
Periods ended June 30 | Three Months |
|
Nine Months |
||||||||||||
Dollars in millions, except per share amounts (unaudited) | 2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sales | |||||||||||||||
Reinforcement Materials | $ |
649 |
|
$ |
624 |
|
$ |
1,966 |
|
$ |
1,939 |
|
|||
Performance Chemicals |
|
332 |
|
|
307 |
|
|
928 |
|
|
919 |
|
|||
Segment sales |
|
981 |
|
|
931 |
|
|
2,894 |
|
|
2,858 |
|
|||
Unallocated and other (A) |
|
35 |
|
|
37 |
|
|
99 |
|
|
108 |
|
|||
Net sales and other operating revenues | $ |
1,016 |
|
$ |
968 |
|
$ |
2,993 |
|
$ |
2,966 |
|
|||
Segment Earnings Before Interest and Taxes (B) | |||||||||||||||
Reinforcement Materials | $ |
136 |
|
$ |
132 |
|
$ |
414 |
|
$ |
348 |
|
|||
Performance Chemicals |
|
55 |
|
|
32 |
|
|
120 |
|
|
89 |
|
|||
Total Segment Earnings Before Interest and Taxes |
|
191 |
|
|
164 |
|
|
534 |
|
|
437 |
|
|||
Unallocated and Other | |||||||||||||||
Interest expense |
|
(19 |
) |
|
(24 |
) |
|
(62 |
) |
|
(69 |
) |
|||
Certain items (C) |
|
(2 |
) |
|
(1 |
) |
|
(56 |
) |
|
(7 |
) |
|||
Unallocated corporate costs |
|
(16 |
) |
|
(11 |
) |
|
(51 |
) |
|
(42 |
) |
|||
General unallocated income (expense) (D) |
|
6 |
|
|
3 |
|
|
34 |
|
|
9 |
|
|||
Less: Equity in earnings of affiliated companies, net of tax |
|
2 |
|
|
1 |
|
|
5 |
|
|
4 |
|
|||
Income (loss) from operations before income taxes and equity in | |||||||||||||||
earnings of affiliated companies |
|
158 |
|
|
130 |
|
|
394 |
|
|
324 |
|
|||
(Provision) benefit for income taxes (including tax certain items) |
|
(40 |
) |
|
(41 |
) |
|
(121 |
) |
|
(90 |
) |
|||
Equity in earnings of affiliated companies, net of tax |
|
2 |
|
|
1 |
|
|
5 |
|
|
4 |
|
|||
Net income (loss) |
|
120 |
|
|
90 |
|
|
278 |
|
|
238 |
|
|||
Net income (loss) attributable to noncontrolling interests, net of tax |
|
11 |
|
|
8 |
|
|
35 |
|
|
27 |
|
|||
Net income (loss) attributable to Cabot Corporation | $ |
109 |
|
$ |
82 |
|
$ |
243 |
|
$ |
211 |
|
|||
Diluted earnings (loss) per share of common stock | |||||||||||||||
attributable to Cabot Corporation | $ |
1.94 |
|
$ |
1.43 |
|
$ |
4.30 |
|
$ |
3.65 |
|
|||
Adjusted earnings (loss) per share (E) | $ |
1.92 |
|
$ |
1.42 |
|
$ |
5.25 |
|
$ |
3.73 |
|
|||
Diluted weighted average common shares outstanding |
|
55.7 |
|
|
56.5 |
|
|
55.8 |
|
|
56.7 |
|
(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 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
June 30, |
|
September 30, |
|||||
Dollars in millions (unaudited) | 2024 |
|
2023 |
||||
Current assets: | |||||||
Cash and cash equivalents | $ |
197 |
|
$ |
238 |
|
|
Accounts and notes receivable, net of reserve for doubtful accounts of |
|
732 |
|
|
695 |
|
|
Inventories: | |||||||
Raw materials |
|
145 |
|
|
148 |
|
|
Finished goods |
|
341 |
|
|
374 |
|
|
Other |
|
67 |
|
|
63 |
|
|
Total inventories |
|
553 |
|
|
585 |
|
|
Prepaid expenses and other current assets |
|
109 |
|
|
108 |
|
|
Total current assets |
|
1,591 |
|
|
1,626 |
|
|
Property, plant and equipment |
|
3,907 |
|
|
3,827 |
|
|
Accumulated Depreciation |
|
(2,477 |
) |
|
(2,415 |
) |
|
Net property, plant and equipment |
|
1,430 |
|
|
1,412 |
|
|
Goodwill |
|
132 |
|
|
134 |
|
|
Equity affiliates |
|
24 |
|
|
20 |
|
|
Intangible assets, net |
|
55 |
|
|
60 |
|
|
Deferred income taxes |
|
166 |
|
|
180 |
|
|
Other assets |
|
182 |
|
|
172 |
|
|
Total assets | $ |
3,580 |
|
$ |
3,604 |
|
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
June 30, |
|
September 30, |
|||||
Dollars in millions, except share and per share amounts (unaudited) | 2024 |
|
2023 |
||||
Current liabilities: | |||||||
Short-term borrowings | $ |
49 |
|
$ |
174 |
|
|
Accounts payable and accrued liabilities |
|
626 |
|
|
600 |
|
|
Income taxes payable |
|
34 |
|
|
40 |
|
|
Current portion of long-term debt |
|
8 |
|
|
8 |
|
|
Total current liabilities |
|
717 |
|
|
822 |
|
|
Long-term debt |
|
1,083 |
|
|
1,094 |
|
|
Deferred income taxes |
|
40 |
|
|
50 |
|
|
Other liabilities |
|
244 |
|
|
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: 54,949,872 and 55,379,636 shares | |||||||
Outstanding: 54,816,803 and 55,243,804 shares |
|
55 |
|
|
55 |
|
|
Less cost of 133,069 and 135,832 shares of common treasury stock |
|
(3 |
) |
|
(3 |
) |
|
Additional paid-in capital |
|
— |
|
|
— |
|
|
Retained earnings |
|
1,676 |
|
|
1,574 |
|
|
Accumulated other comprehensive income (loss) |
|
(382 |
) |
|
(362 |
) |
|
Total Cabot Corporation stockholders' equity |
|
1,346 |
|
|
1,264 |
|
|
Noncontrolling interests |
|
150 |
|
|
143 |
|
|
Total stockholders' equity |
|
1,496 |
|
|
1,407 |
|
|
Total liabilities and stockholders' equity | $ |
3,580 |
|
$ |
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 |
|
$ |
― |
$ |
1,966 |
|
||
Performance Chemicals |
|
286 |
|
|
326 |
|
|
307 |
|
|
306 |
|
1,225 |
|
|
285 |
|
|
311 |
|
|
332 |
|
|
— |
|
928 |
|
|||
Segment sales |
|
929 |
|
|
998 |
|
|
931 |
|
|
930 |
|
|
3,788 |
|
|
926 |
|
|
987 |
|
|
981 |
|
|
— |
|
2,894 |
|
||
Unallocated and other (A) |
|
36 |
|
|
35 |
|
|
37 |
|
|
35 |
|
|
143 |
|
|
32 |
|
|
32 |
|
|
35 |
|
|
— |
|
99 |
|
||
Net sales and other operating revenues | $ |
965 |
|
$ |
1,033 |
|
$ |
968 |
|
$ |
965 |
|
$ |
3,931 |
|
$ |
958 |
|
$ |
1,019 |
|
$ |
1,016 |
|
$ |
― |
$ |
2,993 |
|
||
Segment Earnings Before Interest and Taxes (B) | |||||||||||||||||||||||||||||||
Reinforcement Materials | $ |
94 |
|
$ |
122 |
|
$ |
132 |
|
$ |
134 |
|
$ |
482 |
|
$ |
129 |
|
$ |
149 |
|
$ |
136 |
|
$ |
― |
$ |
414 |
|
||
Performance Chemicals |
|
29 |
|
|
28 |
|
|
32 |
|
|
36 |
|
|
125 |
|
|
34 |
|
|
31 |
|
|
55 |
|
|
— |
|
120 |
|
||
Total Segment Earnings Before Interest and Taxes |
|
123 |
|
|
150 |
|
|
164 |
|
|
170 |
|
|
607 |
|
|
163 |
|
|
180 |
|
|
191 |
|
|
— |
|
534 |
|
||
Unallocated and Other | |||||||||||||||||||||||||||||||
Interest expense |
|
(22 |
) |
|
(23 |
) |
|
(24 |
) |
|
(21 |
) |
|
(90 |
) |
|
(22 |
) |
|
(21 |
) |
|
(19 |
) |
|
— |
|
(62 |
) |
||
Certain items (C) |
|
(4 |
) |
|
(2 |
) |
|
(1 |
) |
|
(22 |
) |
|
(29 |
) |
|
(42 |
) |
|
(12 |
) |
|
(2 |
) |
|
— |
|
(56 |
) |
||
Unallocated corporate costs |
|
(15 |
) |
|
(16 |
) |
|
(11 |
) |
|
(12 |
) |
|
(54 |
) |
|
(17 |
) |
|
(18 |
) |
|
(16 |
) |
|
— |
|
(51 |
) |
||
General unallocated income (expense) (D) |
|
4 |
|
|
2 |
|
|
3 |
|
|
13 |
|
|
22 |
|
|
13 |
|
|
15 |
|
|
6 |
|
|
— |
|
34 |
|
||
Less: Equity in earnings of affiliated companies, net of tax |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
5 |
|
|
1 |
|
|
2 |
|
|
2 |
|
|
— |
|
5 |
|
||
Income (loss) from operations before income taxes and | |||||||||||||||||||||||||||||||
equity in earnings of affiliated companies |
|
84 |
|
|
110 |
|
|
130 |
|
|
127 |
|
|
451 |
|
|
94 |
|
|
142 |
|
|
158 |
|
|
— |
|
394 |
|
||
(Provision) benefit for income taxes (including tax certain items) |
|
(20 |
) |
|
(29 |
) |
|
(41 |
) |
|
118 |
|
|
28 |
|
|
(34 |
) |
|
(47 |
) |
|
(40 |
) |
|
— |
|
(121 |
) |
||
Equity in earnings of affiliated companies, net of tax |
|
2 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
5 |
|
|
1 |
|
|
2 |
|
|
2 |
|
|
— |
|
5 |
|
||
Net income (loss) |
|
66 |
|
|
82 |
|
|
90 |
|
|
246 |
|
|
484 |
|
|
61 |
|
|
97 |
|
|
120 |
|
|
— |
|
278 |
|
||
Net income (loss) attributable to noncontrolling interests, net of tax |
|
12 |
|
|
7 |
|
|
8 |
|
|
12 |
|
|
39 |
|
|
11 |
|
|
13 |
|
|
11 |
|
|
— |
|
35 |
|
||
Net income (loss) attributable to Cabot Corporation | $ |
54 |
|
$ |
75 |
|
$ |
82 |
|
$ |
234 |
|
$ |
445 |
|
$ |
50 |
|
$ |
84 |
|
$ |
109 |
|
$ |
― |
$ |
243 |
|
||
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 |
|
$ |
— |
$ |
4.30 |
|
||
Adjusted earnings (loss) per share (E) | $ |
0.98 |
|
$ |
1.33 |
|
$ |
1.42 |
|
$ |
1.65 |
|
$ |
5.38 |
|
$ |
1.56 |
|
$ |
1.78 |
|
$ |
1.92 |
|
$ |
— |
$ |
5.25 |
|
||
Diluted weighted average common shares outstanding |
|
56.7 |
|
|
56.8 |
|
|
56.5 |
|
|
56.1 |
|
|
56.5 |
|
|
55.8 |
|
|
55.8 |
|
|
55.7 |
|
— |
|
55.8 |
|
(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 June 30 | Three Months |
|
Nine Months |
||||||||||||
Dollars in millions (unaudited) | 2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash Flows from Operating Activities: | |||||||||||||||
Net income (loss) | $ |
120 |
|
$ |
90 |
|
$ |
278 |
|
$ |
238 |
|
|||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation and amortization |
|
36 |
|
|
36 |
|
|
114 |
|
|
107 |
|
|||
Other non-cash charges (gains), net |
|
10 |
|
|
8 |
|
|
81 |
|
|
14 |
|
|||
Cash dividends received from equity affiliates |
|
— |
|
|
— |
|
|
1 |
|
|
2 |
|
|||
Changes in assets and liabilities: | |||||||||||||||
Changes in net working capital (A) |
|
43 |
|
|
71 |
|
|
18 |
|
|
96 |
|
|||
Changes in other assets and liabilities, net |
|
(2 |
) |
|
38 |
|
|
(4 |
) |
|
— |
|
|||
Cash provided by (used in) operating activities |
|
207 |
|
|
243 |
|
|
488 |
|
|
457 |
|
|||
Cash Flows from Investing Activities: | |||||||||||||||
Additions to property, plant and equipment |
|
(52 |
) |
|
(80 |
) |
|
(149 |
) |
|
(166 |
) |
|||
Proceeds from sale of business |
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
|||
Other investing activities, net |
|
1 |
|
|
5 |
|
|
3 |
|
|
21 |
|
|||
Cash provided by (used in) investing activities |
|
(51 |
) |
|
(75 |
) |
|
(146 |
) |
|
(139 |
) |
|||
Cash Flows from Financing Activities: | |||||||||||||||
Change in debt, net |
|
(45 |
) |
|
(123 |
) |
|
(139 |
) |
|
(221 |
) |
|||
Cash dividends paid to common stockholders |
|
(24 |
) |
|
(23 |
) |
|
(69 |
) |
|
(65 |
) |
|||
Other financing activities, net |
|
(62 |
) |
|
(15 |
) |
|
(118 |
) |
|
(85 |
) |
|||
Cash provided by (used in) financing activities |
|
(131 |
) |
|
(161 |
) |
|
(326 |
) |
|
(371 |
) |
|||
Effect of exchange rate changes on cash |
|
(34 |
) |
|
8 |
|
|
(57 |
) |
|
67 |
|
|||
Increase (decrease) in cash and cash equivalents |
|
(9 |
) |
|
15 |
|
|
(41 |
) |
|
14 |
|
|||
Cash and cash equivalents at beginning of period |
|
206 |
|
|
205 |
|
|
238 |
|
|
206 |
|
|||
Cash and cash equivalents at end of period | $ |
197 |
|
$ |
220 |
|
$ |
197 |
|
$ |
220 |
|
(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 June 30 | Three Months |
Nine Months |
|||||||||||||||
Dollars in millions, except per share amounts (unaudited) | 2024 |
2023 |
2024 |
2023 |
|||||||||||||
Certain items before and after income taxes | |||||||||||||||||
$ |
(2 |
) |
$ |
― |
$ |
(43 |
) |
$ |
― |
||||||||
Global restructuring activities |
|
(1 |
) |
|
— |
|
|
(13 |
) |
|
— |
|
|||||
Acquisition and integration-related charges |
|
— |
|
|
(1 |
) |
|
— |
|
|
(2 |
) |
|||||
Legal and environmental matters and reserves |
|
— |
|
|
— |
|
|
(1 |
) |
|
(2 |
) |
|||||
Gain on sale of land |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|||||
Loss on sale of business and asset impairment charge |
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|||||
Other Certain Items |
|
1 |
|
|
— |
|
|
1 |
|
|
(1 |
) |
|||||
Total certain items, pre-tax |
|
(2 |
) |
|
(1 |
) |
|
(56 |
) |
|
(7 |
) |
|||||
Non-GAAP tax adjustments(A) |
|
3 |
|
|
2 |
|
|
3 |
|
|
3 |
|
|||||
Total certain items after tax | $ |
1 |
|
$ |
1 |
|
$ |
(53 |
) |
$ |
(4 |
) |
|||||
Total certain items after tax per share | $ |
0.02 |
|
$ |
0.01 |
|
$ |
(0.95 |
) |
$ |
(0.08 |
) |
|||||
TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM | |||||||||||||||||
Periods ended June 30 | Three Months |
Nine Months |
|||||||||||||||
Dollars in millions, Pre-Tax (unaudited) | 2024 |
2023 |
2024 |
2023 |
|||||||||||||
Statement of Operations Line Item (B) | |||||||||||||||||
Cost of sales | $ |
— |
|
$ |
(1 |
) |
$ |
(12 |
) |
$ |
(4 |
) |
|||||
Selling and administrative expenses |
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|||||
Other income (expense) |
|
(2 |
) |
|
— |
|
|
(43 |
) |
|
— |
|
|||||
Loss on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
(3 |
) |
|||||
Total certain items | $ |
(2 |
) |
$ |
(1 |
) |
$ |
(56 |
) |
$ |
(7 |
) |
|||||
TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE | |||||||||||||||||
Three months June 30 | 2024 |
2023 |
|||||||||||||||
Dollars in millions (unaudited) | (Provision) / Benefit for Income Taxes |
Rate | (Provision) / Benefit for Income Taxes |
Rate | |||||||||||||
Effective Tax Rate | $ |
(40 |
) |
|
25 |
% |
$ |
(41 |
) |
|
32 |
% |
|||||
Less: Non-GAAP tax adjustments(A) |
|
3 |
|
|
2 |
|
|||||||||||
Operating tax rate (C) (D) | $ |
(43 |
) |
|
27 |
% |
$ |
(43 |
) |
|
33 |
% |
|||||
Nine months ended June 30 | 2024 |
2023 |
|||||||||||||||
Dollars in millions (unaudited) |
(Provision) /
|
Rate |
(Provision) /
|
Rate |
|||||||||||||
Effective Tax Rate | $ |
(121 |
) |
|
31 |
% |
$ |
(90 |
) |
|
28 |
% |
|||||
Less: Non-GAAP tax adjustments(A) |
|
3 |
|
|
3 |
|
|||||||||||
Operating tax rate (C) (D) | $ |
(124 |
) |
|
28 |
% |
$ |
(93 |
) |
|
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 |
|
$ |
— |
|
$ |
4.30 |
|
||
Less: Certain items after tax per share |
|
(0.68 |
) |
|
(0.29 |
) |
|
0.02 |
|
|
— |
|
|
(0.95 |
) |
||
Adjusted earnings (loss) per share | $ |
1.56 |
|
$ |
1.78 |
|
$ |
1.92 |
|
$ |
— |
|
$ |
5.25 |
|
||
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 2024 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 |
|
$ |
— |
|
$ |
4.30 |
|
|||||
Less: Certain items after tax per share |
|
(0.68 |
) |
|
(0.29 |
) |
|
0.02 |
|
|
— |
|
|
(0.95 |
) |
|||||
Adjusted earnings (loss) per share | $ |
1.56 |
|
$ |
1.78 |
|
$ |
1.92 |
|
$ |
— |
|
$ |
5.25 |
|
|||||
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 |
|
$ |
― |
$ |
243 |
|
||||||
Net income (loss) attributable to noncontrolling interests |
|
11 |
|
|
13 |
|
|
11 |
|
|
— |
|
|
35 |
|
|||||
Equity in earnings of affiliated companies, net of tax |
|
(1 |
) |
|
(2 |
) |
|
(2 |
) |
|
— |
|
|
(5 |
) |
|||||
Provision (benefit) for income taxes |
|
34 |
|
|
47 |
|
|
40 |
|
|
— |
|
|
121 |
|
|||||
Income (loss) from operations before income taxes and equity in earnings of affiliated companies | $ |
94 |
|
$ |
142 |
|
$ |
158 |
|
$ |
― |
$ |
394 |
|
||||||
Interest expense |
|
22 |
|
|
21 |
|
|
19 |
|
|
— |
|
|
62 |
|
|||||
Certain items |
|
42 |
|
|
12 |
|
|
2 |
|
|
— |
|
|
56 |
|
|||||
Unallocated corporate costs |
|
17 |
|
|
18 |
|
|
16 |
|
|
— |
|
|
51 |
|
|||||
General unallocated (income) expense |
|
(13 |
) |
|
(15 |
) |
|
(6 |
) |
|
— |
|
|
(34 |
) |
|||||
Less: Equity in earnings of affiliated companies |
|
(1 |
) |
|
(2 |
) |
|
(2 |
) |
|
— |
|
|
(5 |
) |
|||||
Total Segment EBIT | $ |
163 |
|
$ |
180 |
|
$ |
191 |
|
$ |
― |
$ |
534 |
|
||||||
Depreciation and amortization excluding corporate depreciation |
|
35 |
|
|
37 |
|
|
36 |
|
|
— |
|
|
108 |
|
|||||
Total Segment EBITDA | $ |
198 |
|
$ |
217 |
|
$ |
227 |
|
$ |
― |
$ |
642 |
|
||||||
Less: Unallocated corporate costs before corporate depreciation |
|
17 |
|
|
18 |
|
|
16 |
|
|
— |
|
|
51 |
|
|||||
Adjusted EBITDA | $ |
181 |
|
$ |
199 |
|
$ |
211 |
|
$ |
― |
$ |
591 |
|
||||||
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | |||||||||||||||
Reinforcement Materials EBIT | $ |
129 |
|
$ |
149 |
|
$ |
136 |
|
$ |
― |
$ |
414 |
|
||||||
Reinforcement Materials Depreciation and amortization |
|
17 |
|
|
16 |
|
|
16 |
|
|
— |
|
|
49 |
|
|||||
Reinforcement Materials EBITDA | $ |
146 |
|
$ |
165 |
|
$ |
152 |
|
$ |
― |
$ |
463 |
|
||||||
Reinforcement Materials Sales | $ |
641 |
|
$ |
676 |
|
$ |
649 |
|
$ |
― |
$ |
1,966 |
|
||||||
Reinforcement Materials EBITDA Margin |
|
23 |
% |
|
24 |
% |
|
23 |
% |
|
— |
% |
|
24 |
% |
|||||
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | |||||||||||||||
Performance Chemicals EBIT | $ |
34 |
|
$ |
31 |
|
$ |
55 |
|
$ |
― |
$ |
120 |
|
||||||
Performance Chemicals Depreciation and amortization |
|
18 |
|
|
20 |
|
|
20 |
|
|
— |
|
|
58 |
|
|||||
Performance Chemicals EBITDA | $ |
52 |
|
$ |
51 |
|
$ |
75 |
|
$ |
― |
$ |
178 |
|
||||||
Performance Chemicals Sales | $ |
285 |
|
$ |
311 |
|
$ |
332 |
|
$ |
― |
$ |
928 |
|
||||||
Performance Chemicals EBITDA Margin |
|
18 |
% |
|
16 |
% |
|
23 |
% |
|
— |
% |
|
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 |
|
$ |
― |
$ |
488 |
|
||||||
Less: Additions to property, plant and equipment |
|
54 |
|
|
43 |
|
|
52 |
|
|
— |
|
|
149 |
|
|||||
Free cash flow | $ |
51 |
|
$ |
133 |
|
$ |
155 |
|
$ |
― |
$ |
339 |
|
||||||
Plus: Additions to property, plant and equipment |
|
54 |
|
|
43 |
|
|
52 |
|
|
— |
|
|
149 |
|
|||||
Less: Changes in net working capital (C) |
|
(46 |
) |
|
21 |
|
|
43 |
|
|
— |
|
|
18 |
|
|||||
Less: Sustaining and compliance capital expenditures |
|
33 |
|
|
27 |
|
|
36 |
|
|
— |
|
|
96 |
|
|||||
Discretionary free cash flow | $ |
118 |
|
$ |
128 |
|
$ |
128 |
|
$ |
― |
$ |
374 |
|
||||||
(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/20240802864032/en/
Investor Contact: Steve Delahunt
(617) 342-6255
Source: Cabot Corporation
FAQ
What was Cabot 's (CBT) Adjusted EPS for Q3 fiscal 2024?
How much did Cabot 's (CBT) Reinforcement Materials segment EBIT grow in Q3 fiscal 2024?
What is Cabot 's (CBT) updated adjusted EPS guidance range for fiscal 2024?