Diluted earnings per share (“EPS”) of $1.49 and
Adjusted EPS of $1.78
Cabot Corporation (NYSE: CBT) today announced results for its
second quarter of fiscal year 2024.
Key Highlights
- Diluted EPS of $1.49 and adjusted EPS of $1.78, which
represents a 34% increase in Adjusted EPS as compared to the same
quarter in the prior year
- Reinforcement Materials segment EBIT of $149 million; up 22%
compared to the same quarter in the prior year
- Performance Chemicals segment EBIT of $31 million; up 11%
compared to the same quarter in the prior year
- Cash Flows from Operations of $176 million in the second
fiscal quarter supported the return of $47 million of cash to
shareholders in the quarter
- Increased quarterly dividend by 8% from $0.40 to $0.43 per
share
(In millions, except per share
amounts)
Three Months Ended
Six Months Ended
3/31/24
3/31/23
3/31/24
3/31/23
Net sales and other operating revenues
$
1,019
$
1,033
$
1,977
$
1,998
Net income (loss) attributable to Cabot
Corporation
$
84
$
75
$
134
$
129
Net earnings (loss) per share attributable
to Cabot Corporation
$
1.49
$
1.29
$
2.37
$
2.23
Less: Certain items after tax per
share
$
(0.29
)
$
(0.04
)
$
(0.96
)
$
(0.08
)
Adjusted EPS
$
1.78
$
1.33
$
3.33
$
2.31
Sean Keohane, Cabot President and Chief Executive Officer,
commented on the quarter, “I am very pleased with our second
quarter results, as the Cabot team continued to execute against our
Creating for Tomorrow strategy by delivering significant growth in
Adjusted EPS year-over-year. Reinforcement Materials continued to
demonstrate excellent performance, delivering EBIT of $149 million
driven by price and product mix improvements in our calendar 2024
customer agreements and higher segment volumes. EBIT in the
Performance Chemicals segment grew 11% year over year due to
improved volumes.”
Keohane continued, “During the second quarter, we delivered
operating cash flow of $176 million and returned $47 million of
cash to our shareholders through $23 million in dividends and $24
million in share repurchases. In addition, today we announced an 8%
increase to our quarterly dividend, which reflects our confidence
in the strength of our cash flows and long-term growth outlook for
our businesses. Our balance sheet remained strong with
approximately $1.3 billion of liquidity as of quarter end.”
Financial Detail
For the second quarter of fiscal 2024, net income attributable
to Cabot Corporation was $84 million ($1.49 per common share). Net
income reflects an after-tax per share charge from certain items of
$0.29. Adjusted EPS for the second quarter of fiscal 2024 was $1.78
per share.
Segment Results
Reinforcement Materials – Second quarter fiscal 2024 EBIT
in Reinforcement Materials increased by $27 million compared to the
second quarter of fiscal 2023. The increase in EBIT was principally
driven by improved unit margins from higher pricing and improved
product mix in our calendar year 2024 customer agreements and by
higher volumes in Asia and Europe.
Global and regional volume changes for Reinforcement Materials
for the second quarter of fiscal 2024 as compared to the same
quarter of the prior year are set forth in the table below:
Second Quarter
Year-over-Year Change
Global Reinforcement Materials
Volumes
6%
Asia
21%
Europe, Middle East, Africa
4%
Americas
(8%)
Performance Chemicals – Second quarter fiscal 2024 EBIT
in Performance Chemicals increased by $3 million compared to the
second quarter of fiscal 2023 primarily due to 6% higher volumes.
Higher volumes were driven primarily by increases in the specialty
carbons and specialty compounds product lines.
Cash Performance – The Company ended the second
quarter of fiscal 2024 with a cash balance of $206 million. During
the second quarter of fiscal 2024, cash flows from operating
activities were a source of $176 million. Capital expenditures for
the second quarter of fiscal 2024 were $43 million. Additional uses
of cash during the second quarter included $23 million for the
payment of dividends and $24 million for share repurchases.
Taxes – During the second quarter of fiscal 2024, the
Company recorded a tax expense of $47 million with an effective tax
rate of 33%. This tax expense reflected a $4 million net expense
for non-GAAP tax adjustments. The operating tax rate in the second
quarter of fiscal 2024 was 28%. Our operating tax rate for fiscal
2024 is expected to be in the range of 27% to 29%.
Outlook
Commenting on the outlook for the Company, Keohane said, “Given
the strong year-to-date results and our expectations for the second
half of fiscal 2024, we are raising our Adjusted EPS guidance range
for the fiscal year to $6.65 to $6.85 from our previously
communicated range of $6.30 to $6.80. This updated guidance range
reflects an increase of $0.20 at the midpoint. Reinforcement
Materials continues to deliver exceptional results and we are
seeing some encouraging demand signals in Performance
Chemicals.”
Keohane continued, “Our outlook for operating cash flow also
remains strong, which would enable us to continue investing in
strategic growth projects and to continue returning robust levels
of cash to shareholders. As noted earlier, we increased our
dividend today by 8% and we expect to continue to opportunistically
repurchase shares. I am confident in our strategy and execution
capability and our expectation to achieve the three-year
consolidated financial objectives that we outlined at our December
2021 investor day.”
Earnings Call
The Company will host a conference call with industry analysts
at 8:00 a.m. Eastern time on Tuesday, May 7, 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 Boston,
Massachusetts. The company is a leading provider of reinforcing
carbons, specialty carbons, battery materials, engineered elastomer
composites, inkjet colorants, masterbatches and conductive
compounds, fumed metal oxides and aerogel. For more information on
Cabot, please visit the company’s website at cabotcorp.com. The
Company regularly posts important information on its website and
encourages investors and potential investors to consult the Cabot
website regularly.
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
and the expected performance of our business segments for the
remainder of fiscal 2024, our expectations for 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, our expectations for the long-term growth outlook
for our business, 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 Ukraine and the U.S.-China trade relationship; a significant
adverse change in a customer relationship or the failure of a
customer to perform its obligations under agreements with us;
failure to achieve growth expectations from new products,
applications and technology developments; failure to realize
benefits from acquisitions, alliances, or joint ventures or achieve
our portfolio management objectives; unanticipated delays in, or
increased cost of site development projects; negative or uncertain
worldwide or regional economic conditions and market opportunities,
including from trade relations, global health matters or
geo-political conflicts; litigation or legal proceedings; interest
rates, tax rates, currency exchange controls and fluctuations in
foreign currency rates such as the recent currency movements in
Argentina; and the accuracy of the assumptions we used in
establishing reserves for our share of liability for respirator
claims. These factors are discussed more fully in the reports we
file with the Securities and Exchange Commission (“SEC”),
particularly under the heading “Risk Factors” in our annual report
on Form 10-K for our fiscal year ended September 30, 2023, which
are filed with the SEC at www.sec.gov. We assume no obligation to
provide revisions to any forward-looking statements should
circumstances change, except as otherwise required by securities
and other applicable laws.
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 March 31 Three Months
Six Months
Dollars in millions, except per share amounts (unaudited)
2024
2023
2024
2023
Net sales and other operating revenues
$
1,019
$
1,033
$
1,977
$
1,998
Cost of sales
773
823
1,513
1,607
Gross profit
246
210
464
391
Selling and administrative expenses
75
66
142
126
Research and technical expenses
15
15
30
28
Loss on sale of business
—
—
—
3
Income (loss) from operations
156
129
292
234
Other income (expense) Interest and dividend income
8
9
17
15
Interest expense
(21
)
(23
)
(43
)
(45
)
Other income (expense)
(1
)
(5
)
(30
)
(10
)
Total other income (expense)
(14
)
(19
)
(56
)
(40
)
Income (loss) from operations before income taxes and equity
in earnings of affiliated companies
142
110
236
194
(Provision) benefit for income taxes
(47
)
(29
)
(81
)
(49
)
Equity in earnings of affiliated companies, net of tax
2
1
3
3
Net income (loss)
97
82
158
148
Net income (loss) attributable to noncontrolling interests, net of
tax
13
7
24
19
Net income (loss) attributable to Cabot Corporation
$
84
$
75
$
134
$
129
Diluted earnings (loss) per share of common stock
attributable to Cabot Corporation
$
1.49
$
1.29
$
2.37
$
2.23
Diluted weighted average common shares outstanding
55.8
56.8
55.8
56.7
CABOT CORPORATION SUMMARY RESULTS BY SEGMENT
Periods ended March 31 Three Months Six Months
Dollars in millions, except per share amounts (unaudited)
2024
2023
2024
2023
Sales Reinforcement Materials
$
676
$
672
$
1,317
$
1,315
Performance Chemicals
311
326
596
612
Segment sales
987
998
1,913
1,927
Unallocated and other (A)
32
35
64
71
Net sales and other operating revenues
$
1,019
$
1,033
$
1,977
$
1,998
Segment Earnings Before Interest and Taxes (B)
Reinforcement Materials
$
149
$
122
$
278
$
216
Performance Chemicals
31
28
65
57
Total Segment Earnings Before Interest and Taxes
180
150
343
273
Unallocated and Other Interest expense
(21
)
(23
)
(43
)
(45
)
Certain items (C)
(12
)
(2
)
(54
)
(6
)
Unallocated corporate costs
(18
)
(16
)
(35
)
(31
)
General unallocated income (expense) (D)
15
2
28
6
Less: Equity in earnings of affiliated companies, net of tax
2
1
3
3
Income (loss) from operations before income taxes and equity
in earnings of affiliated companies
142
110
236
194
(Provision) benefit for income taxes (including tax certain items)
(47
)
(29
)
(81
)
(49
)
Equity in earnings of affiliated companies, net of tax
2
1
3
3
Net income (loss)
97
82
158
148
Net income (loss) attributable to noncontrolling interests, net of
tax
13
7
24
19
Net income (loss) attributable to Cabot Corporation
$
84
$
75
$
134
$
129
Diluted earnings (loss) per share of common stock
attributable to Cabot Corporation
$
1.49
$
1.29
$
2.37
$
2.23
Adjusted earnings (loss) per share (E)
$
1.78
$
1.33
$
3.33
$
2.31
Diluted weighted average common shares outstanding
55.8
56.8
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
March 31,
September 30,
Dollars in millions (unaudited)
2024
2023
Current assets: Cash and cash
equivalents
$
206
$
238
Accounts and notes receivable, net of reserve for doubtful accounts
of $5 and $2
744
695
Inventories: Raw materials
127
148
Finished goods.
354
374
Other
70
63
Total inventories
551
585
Prepaid expenses and other current assets
104
108
Total current assets
1,605
1,626
Property, plant and equipment
3,909
3,827
Accumulated Depreciation
(2,482
)
(2,415
)
Net property, plant and equipment
1,427
1,412
Goodwill
137
134
Equity affiliates
22
20
Intangible assets, net
59
60
Deferred income taxes
163
180
Other assets
183
172
Total assets
$
3,596
$
3,604
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
March 31, September 30, Dollars in millions,
except share and per share amounts (unaudited)
2024
2023
Current liabilities: Short-term borrowings
$
88
$
174
Accounts payable and accrued liabilities
587
600
Income taxes payable
35
40
Current portion of long-term debt
8
8
Total current liabilities
718
822
Long-term debt
1,088
1,094
Deferred income taxes
38
50
Other liabilities
245
231
Stockholders' equity: Preferred stock: Authorized:
2,000,000 shares of $1 par value Issued and Outstanding: None and
none
—
—
Common stock:
Authorized: 200,000,000 shares of $1
par value Issued: 55,391,349 and 55,379,636 shares Outstanding:
55,258,040 and 55,243,804 shares
55
55
Less cost of 133,309 and 135,832 shares of common treasury
stock
(3
)
(3
)
Additional paid-in capital
—
—
Retained earnings
1,632
1,574
Accumulated other comprehensive income (loss)
(317
)
(362
)
Total Cabot Corporation stockholders' equity
1,367
1,264
Noncontrolling interests
140
143
Total stockholders' equity
1,507
1,407
Total liabilities and stockholders' equity
$
3,596
$
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
$
―
$
―
$
1,317
Performance Chemicals
286
326
307
306
$
1,225
285
311
—
—
596
Segment sales
929
998
931
930
3,788
926
987
—
—
1,913
Unallocated and other (A)
36
35
37
35
143
32
32
—
—
64
Net sales and other operating revenues
$
965
$
1,033
$
968
$
965
$
3,931
$
958
$
1,019
$
―
$
―
$
1,977
Segment Earnings Before Interest and Taxes (B)
Reinforcement Materials
$
94
$
122
$
132
$
134
$
482
$
129
$
149
$
―
$
―
$
278
Performance Chemicals
29
28
32
36
125
34
31
—
—
65
Total Segment Earnings Before Interest and Taxes
123
150
164
170
607
163
180
—
—
343
Unallocated and Other Interest expense
(22
)
(23
)
(24
)
(21
)
(90
)
(22
)
(21
)
—
—
(43
)
Certain items (C)
(4
)
(2
)
(1
)
(22
)
(29
)
(42
)
(12
)
—
—
(54
)
Unallocated corporate costs
(15
)
(16
)
(11
)
(12
)
(54
)
(17
)
(18
)
—
—
(35
)
General unallocated income (expense) (D)
4
2
3
13
22
13
15
—
—
28
Less: Equity in earnings of affiliated companies, net of tax
2
1
1
1
5
1
2
—
—
3
Income (loss) from operations before income taxes and
equity in earnings of affiliated companies
84
110
130
127
451
94
142
—
—
236
(Provision) benefit for income taxes (including tax certain items)
(20
)
(29
)
(41
)
118
28
(34
)
(47
)
—
—
(81
)
Equity in earnings of affiliated companies, net of tax
2
1
1
1
5
1
2
—
—
3
Net income (loss)
66
82
90
246
484
61
97
—
—
158
Net income (loss) attributable to noncontrolling interests, net of
tax
12
7
8
12
39
11
13
—
—
24
Net income (loss) attributable to Cabot Corporation
$
54
$
75
$
82
$
234
$
445
$
50
$
84
$
―
$
―
$
134
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
$
—
$
—
$
2.37
Adjusted earnings (loss) per share (E)
$
0.98
$
1.33
$
1.42
$
1.65
$
5.38
$
1.56
$
1.78
$
—
$
—
$
3.33
Diluted weighted average common shares outstanding
56.7
56.8
56.5
56.1
56.5
55.8
55.8
—
—
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 March 31 Three Months Six Months
Dollars in millions (unaudited)
2024
2023
2024
2023
Cash Flows from Operating Activities:
Net income (loss)
$
97
$
82
$
158
$
148
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization
37
36
78
71
Other non-cash charges (gains), net
22
4
71
6
Cash dividends received from
equity affiliates
—
—
1
2
Changes in assets and liabilities:
Changes in net working capital (A)
21
59
(25
)
25
Changes in other assets and liabilities, net
(1
)
(19
)
(2
)
(38
)
Cash provided by (used in) operating activities
176
162
281
214
Cash Flows from Investing Activities:
Additions to property,
plant and equipment
(43
)
(51
)
(97
)
(86
)
Proceeds from sale of business
—
—
—
6
Other investing activities, net
2
4
2
16
Cash provided by (used in) investing activities
(41
)
(47
)
(95
)
(64
)
Cash Flows from Financing Activities:
Change in debt, net
(125
)
(55
)
(94
)
(98
)
Cash dividends paid to common stockholders
(23
)
(21
)
(45
)
(42
)
Other financing activities, net
(18
)
(42
)
(56
)
(70
)
Cash provided by (used in) financing activities
(166
)
(118
)
(195
)
(210
)
Effect of exchange rate changes on cash
(7
)
18
(23
)
59
Increase (decrease) in cash and cash equivalents
(38
)
15
(32
)
(1
)
Cash and cash equivalents at beginning of period
244
190
238
206
Cash and cash equivalents at end of period
$
206
$
205
$
206
$
205
(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 March
31 Three Months Six Months Dollars in millions, except per share
amounts (unaudited)
2024
2023
2024
2023
Certain items before and after income
taxes Argentina controlled
currency devaluation loss and other losses
$
(8
)
$
―
$
(41
)
$
―
Global restructuring activities
(3
)
—
(12
)
—
Legal and environmental matters and reserves
(1
)
(1
)
(1
)
(2
)
Gain on sale of land
—
—
—
1
Loss on sale of business and asset impairment charge
—
—
—
(3
)
Acquisition and integration-related charges
—
—
—
(1
)
Other Certain Items
—
(1
)
—
(1
)
Total certain items, pre-tax
(12
)
(2
)
(54
)
(6
)
Non-GAAP tax adjustments(A)
(4
)
—
—
1
Total certain items after tax
$
(16
)
$
(2
)
$
(54
)
$
(5
)
Total certain items after tax per share
$
(0.29
)
$
(0.04
)
$
(0.96
)
$
(0.08
)
TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE
ITEM Periods ended March 31 Three Months Six Months
Dollars in millions, Pre-Tax (unaudited)
2024
2023
2024
2023
Statement of Operations Line
Item (B)
Cost of sales
$
3
$
(1
)
12
(3
)
Selling and administrative expenses
1
(1
)
1
—
Other income (expense)
8
—
41
—
Loss on sale of business
—
—
—
(3
)
Total certain items
$
12
$
(2
)
$
54
$
(6
)
TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO
OPERATING TAX RATE Three months March 31
2024
2023
Dollars in millions (unaudited) (Provision) /
Benefit for Income Taxes Rate (Provision) / Benefit for
Income Taxes Rate Effective Tax Rate
$
(47
)
33
%
$
(29
)
26
%
Less: Non-GAAP tax adjustments(A)
(4
)
—
Operating tax rate (C) (D)
$
(43
)
28
%
$
(29
)
25
%
Six months ended March 31
2024
2023
Dollars in millions (unaudited) (Provision) / Benefit for
Income Taxes Rate (Provision) / Benefit for Income
Taxes Rate Effective Tax Rate
$
(81
)
34
%
$
(49
)
25
%
Less: Non-GAAP tax adjustments(A)
—
1
Operating tax rate (C) (D)
$
(81
)
28
%
$
(50
)
25
%
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
$
—
$
—
$
2.37
Less: Certain items after tax per share
(0.68
)
(0.29
)
—
—
(0.96
)
Adjusted earnings (loss) per share
$
1.56
$
1.78
$
—
$
—
$
3.33
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 27% to 29%. (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
$
—
$
—
$
2.37
Less: Certain items after tax per share
(0.68
)
(0.29
)
—
—
(0.96
)
Adjusted earnings (loss) per share
$
1.56
$
1.78
$
—
$
—
$
3.33
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
$
―
$
―
$
134
Net income (loss) attributable to noncontrolling interests
11
13
—
—
24
Equity in earnings of affiliated companies, net of tax
(1
)
(2
)
—
—
(3
)
Provision (benefit) for income taxes
34
47
—
—
81
Income (loss) from operations before income taxes and equity in
earnings of affiliated companies
$
94
$
142
$
―
$
―
$
236
Interest expense
22
21
—
—
43
Certain items
42
12
—
—
54
Unallocated corporate costs
17
18
—
—
35
General unallocated (income) expense
(13
)
(15
)
—
—
(28
)
Less: Equity in earnings of affiliated companies
(1
)
(2
)
—
—
(3
)
Total Segment EBIT
$
163
$
180
$
―
$
―
$
343
Depreciation and amortization excluding corporate depreciation
35
37
—
—
72
Total Segment EBITDA
$
198
$
217
$
―
$
―
$
415
Less: Unallocated corporate costs before corporate depreciation
17
18
—
—
35
Adjusted EBITDA
$
181
$
199
$
―
$
―
$
380
Dollars in
millions Dec. Q Mar. Q June Q Sept. Q FY 2024
Reinforcement
Materials EBIT
$
129
$
149
$
―
$
―
$
278
Reinforcement Materials Depreciation and amortization
17
17
—
—
34
Reinforcement Materials EBITDA
$
146
$
166
$
―
$
―
$
312
Reinforcement Materials Sales
$
641
$
676
$
―
$
―
$
1,317
Reinforcement Materials EBITDA Margin
23
%
25
%
—
%
—
%
24
%
Dollars in
millions Dec. Q Mar. Q June Q Sept. Q FY 2024
Performance
Chemicals EBIT
$
34
$
31
$
―
$
―
$
65
Performance Chemicals Depreciation and amortization
18
20
—
—
38
Performance Chemicals EBITDA
$
52
$
51
$
―
$
―
$
103
Performance Chemicals Sales
$
285
$
311
$
―
$
―
$
596
Performance Chemicals EBITDA Margin
18
%
16
%
—
%
—
%
17
%
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
$
―
$
―
$
281
Less: Additions to property, plant and equipment
54
43
—
—
97
Free cash flow
$
51
$
133
$
―
$
―
$
184
Plus: Additions to property, plant and equipment
54
43
—
—
97
Less: Changes in net working capital (C)
(46
)
21
—
—
(25
)
Less: Sustaining and compliance capital expenditures
33
27
—
—
60
Discretionary free cash flow
$
118
$
128
$
―
$
―
$
246
(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/20240503295203/en/
Steve Delahunt (617) 342-6255
Grafico Azioni Cabot (NYSE:CBT)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Cabot (NYSE:CBT)
Storico
Da Dic 2023 a Dic 2024
