Cabot Corp Reports Second Quarter Fiscal 2024 Results

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

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. …

Source: Cabot