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[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarter ended December 31, 2023, showing a slight decrease in net sales, lower net income, and improved cash from operations Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended Dec 31, 2023 (in millions) | Three Months Ended Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | Net sales and other operating revenues | $958 | $965 | | Gross profit | $218 | $181 | | Income from operations | $136 | $105 | | Net income attributable to Cabot Corporation | $50 | $54 | | Diluted Earnings per common share | $0.88 | $0.93 | Consolidated Balance Sheets Highlights (Unaudited) | Metric | December 31, 2023 (in millions) | September 30, 2023 (in millions) | | :--- | :--- | :--- | | Total current assets | $1,692 | $1,626 | | Total assets | $3,695 | $3,604 | | Total current liabilities | $830 | $822 | | Total stockholders' equity | $1,475 | $1,407 | | Total liabilities and stockholders' equity | $3,695 | $3,604 | Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric | Three Months Ended Dec 31, 2023 (in millions) | Three Months Ended Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | Cash provided by operating activities | $105 | $52 | | Cash used in investing activities | ($54) | ($17) | | Cash used in financing activities | ($29) | ($92) | | Increase (decrease) in cash | $6 | ($16) | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial items, including a **$40 million foreign exchange loss** in Argentina, **$9 million in restructuring charges**, and stable **$38 million reserve for respirator liabilities** - The company's Argentinian subsidiary recorded a significant **foreign exchange loss of $40 million** due to the revaluation of monetary balances, with **$33 million** resulting from a single devaluation action by the new government[41](index=41&type=chunk) - In Q1 fiscal 2024, the company initiated restructuring activities, including closing a reinforcing carbons unit in Tianjin, China, and temporarily idling an aerogel plant in Frankfurt, Germany. This resulted in **restructuring charges of $9 million** for the quarter[48](index=48&type=chunk)[65](index=65&type=chunk) - The **reserve for respirator-related liabilities**, a long-standing contingency, was unchanged at **$38 million** as of December 31, 2023, and September 30, 2023[61](index=61&type=chunk) Segment Revenues from External Customers (Q1 FY24 vs Q1 FY23) | Segment | Q1 2023 (in millions) | Q1 2022 (in millions) | | :--- | :--- | :--- | | Reinforcement Materials | $641 | $643 | | Performance Chemicals | $285 | $286 | | **Segment Total** | **$926** | **$929** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis indicates that while consolidated net sales slightly decreased year-over-year, gross profit increased by **$37 million** due to higher volumes and margins, with total segment EBIT growing by **$40 million** to **$163 million**, despite a **$40 million foreign currency loss** in Argentina, and cash from operations more than doubling to **$105 million** - **Consolidated gross profit increased by $37 million** YoY, primarily due to higher volumes and improved unit margins in both the Reinforcement Materials and Performance Chemicals segments[125](index=125&type=chunk) Segment EBIT Performance (Q1 FY24 vs Q1 FY23) | Segment | EBIT Q1 2024 (in millions) | EBIT Q1 2023 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Reinforcement Materials | $129 | $94 | +$35 | | Performance Chemicals | $34 | $29 | +$5 | | **Total Segment EBIT** | **$163** | **$123** | **+$40** | - **Reinforcement Materials EBIT increased by $35 million** YoY, driven by higher unit margins (**$28 million**) from favorable pricing and product mix, and higher volumes (**$5 million**) in Europe and Asia[110](index=110&type=chunk) - **Other expense increased by $24 million** YoY, primarily due to **$40 million in foreign currency losses** from the Argentine peso devaluation, partially offset by **$12 million in investment income** in Argentina[78](index=78&type=chunk) - **Cash flow from operating activities increased significantly to $105 million** in Q1 2024 from **$52 million** in Q1 2023, mainly due to improved segment EBIT[115](index=115&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been **no material changes** in its market risk exposures for the quarter ended December 31, 2023, compared to the information provided in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 - Information about market risks for the period ended December 31, 2023, **does not differ materially** from the disclosures in the 2023 10-K[42](index=42&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of December 31, 2023, the company's principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective**, with **no material changes in internal control over financial reporting** during the quarter - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2023[147](index=147&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[147](index=147&type=chunk) [Part II. Other Information](index=27&type=section&id=Part%20II.%20Other%20Information) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchases of its common stock during the first quarter of fiscal 2024, with Cabot repurchasing a total of **260,094 shares** under its publicly announced plan, which does not have a set expiration date Issuer Purchases of Equity Securities (Q1 FY2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2023 | 0 | $ - | | Nov 2023 | 191,954 | $76.74 | | Dec 2023 | 68,140 | $77.33 | | **Total** | **260,094** | **N/A** | - The Board of Directors authorized a share repurchase program on July 13, 2018, which does not have a set expiration date. As of December 31, 2023, **2,724,876 shares remained available for repurchase** under this plan[44](index=44&type=chunk)[144](index=144&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the quarterly report, including the company's certificate of incorporation, by-laws, and **certifications from the Principal Executive Officer (31.1) and Principal Financial Officer (31.2)** as required by SEC rules - The report includes several exhibits, such as **certifications from the Principal Executive Officer (31.1) and Principal Financial Officer (31.2)** as required by the Exchange Act, and XBRL data files[121](index=121&type=chunk)

Cabot Corporation (NYSE:CBT) Q1 2024 Earnings Conference Call February 6, 2024 8:00 AM ET Company Participants Steve Delahunt - Vice President, Treasurer and Investor Relations Sean Keohane - Chief Executive Officer and President Erica McLaughlin - Executive Vice President and Chief Financial Officer Conference Call Participants David Huang - Deutsche Bank Laurence Alexander - Jefferies Chris Kapsch - Loop Capital Markets James Cannon - UBS John Roberts - Mizuho Operator Good day, and thank you for standing ...

Cabot Corporation (CBT) recorded first-quarter fiscal 2024 (ending Dec 31, 2023) earnings of 88 cents per share compared with the year-ago quarter's 93 cents.CBT posted adjusted earnings of $1.56 per share, up 59.2% from the year-ago quarter figure of 98 cents. It surpassed the Zacks Consensus Estimate of $1.49.The company’s net sales in the first quarter were $958 million, which beat the Zacks Consensus Estimate of $927.3 million. Net sales decreased around 0.7% from $965 million reported in the prior-year ...

CABOT EARNINGS TELECONFERENCE First Quarter - Fiscal 2024 Forward Looking Statements Q1 2024 Highlights Q1 GAAP EPS of $0.88; Adjusted EPS1 1 of $1.56 Reinforcement Materials segment EBIT of $129 million; up 37% year over year 2 Reinforcement Materials segment EBIT of $129 million; up 37% year over year 2 Cash Flows from Operations of $105 million; Returned $55 million to shareholders 5 Q1 GAAP EPS of $0.88; Adjusted EPS1 1 of $1.56 Finalized 2024 Reinforcement Materials customer agreements with price and m ...

BOSTON--(BUSINESS WIRE)--Cabot Corporation (NYSE: CBT) today announced results for its first quarter of fiscal year 2024. Key Highlights Reinforcement Materials segment EBIT of $129 million; up 37% compared to the same quarter in the prior year Performance Chemicals segment EBIT of $34 million; up 17% year over year Finalized calendar year 2024 Reinforcement Materials customer agreements with price and product mix improvements in all regions Cash Flows from Operations of $105 million in the fisca ...

Galeanu MihaiIntro We wrote about Cabot Corporation (NYSE:CBT) in April of last year when we stated that lower volumes & overbought technicals would most likely lead to volatility over the near term. Although shares did drop some 10%+ over the following two months, shares initially bottomed in late June'2023 before rallying once more post the company's encouraging Q4 report announced last November. However, the consolidation shares underwent for well over 6 months in the mid-point of calendar 2023 means ...

Financial Performance - Net sales for 2023 were $3,931 million, a decrease of 9% from $4,321 million in 2022[82] - Gross profit for 2023 was $839 million, down from $885 million in 2022, reflecting a gross margin of approximately 21.4%[82] - Net income attributable to Cabot Corporation for 2023 was $445 million, compared to $209 million in 2022, representing a significant increase of 113%[82] - Basic earnings per share for 2023 were $7.79, up from $3.65 in 2022, indicating a growth of 113%[82] - Net income for fiscal 2023 was $484 million, a significant increase from $243 million in fiscal 2022, representing a growth of 99%[88] - The company’s comprehensive income attributable to Cabot Corporation was $522 million for the fiscal year[115] - Net income attributable to Cabot Corporation for the year ended September 30, 2023, was $445 million, a significant increase from $209 million in 2022, representing a 113% growth[253] Assets and Liabilities - Total current assets decreased to $1,626 million in 2023 from $1,820 million in 2022, primarily due to lower accounts receivable and inventories[85] - Total liabilities decreased to $2,197 million in 2023 from $2,339 million in 2022, reflecting improved financial stability[87] - Total stockholders' equity increased to $1,407 million in 2023 from $1,032 million in 2022, reflecting strong retained earnings growth[87] - Cash and cash equivalents increased to $238 million in 2023 from $206 million in 2022, indicating better liquidity[85] - Long-term debt as of September 30, 2023, was $1.082 billion, with fixed interest payments totaling $270 million[106] - The company reported a total debt of $1,102 million as of September 30, 2023, slightly up from $1,096 million in 2022, with long-term debt at $1,094 million[164] Cash Flow and Investments - Cash provided by operating activities increased to $595 million in fiscal 2023, compared to $100 million in fiscal 2022[88] - Cash used in investing activities was $214 million in fiscal 2023, up from $118 million in fiscal 2022, primarily due to $244 million in capital expenditures[102] - Capital expenditures for fiscal 2024 are expected to be between $250 million and $275 million, focusing on sustaining and compliance projects as well as capacity expansion[102] - Cash dividends paid to common stockholders totaled $88 million in fiscal 2023, compared to $84 million in fiscal 2022, with dividends per share increasing from $1.48 to $1.54[104] Foreign Currency and Taxation - The company reported a foreign currency translation adjustment of $80 million in 2023, compared to a loss of $175 million in 2022, indicating improved currency stability[83] - The company experienced a net foreign currency transaction loss of $35 million in fiscal 2023, compared to $13 million in fiscal 2022[98] - The provision for income taxes for the year ended September 30, 2023, was a benefit of $(28) million, compared to a provision of $102 million in 2022[227] - Total deferred tax assets increased to $214 million in 2023 from $82 million in 2022, reflecting a significant rise of 161%[206] - The total deferred tax liabilities decreased to $(84) million in 2023 from $(102) million in 2022, a decline of 18%[206] Pension and Employee Benefits - As of September 30, 2023, the consolidated pension obligation, net of plan assets, was $22 million, with cash contributions of $4 million made in fiscal 2023 and expected in fiscal 2024[105] - The unfunded postretirement benefit plan liabilities totaled $25 million, comprising $14 million for U.S. plans and $11 million for foreign plans, with expected benefit payments of $3 million for fiscal 2024[105] - The net periodic defined benefit cost for the U.S. pension plan was $2 million, with foreign pension costs at $3 million[173] - The company expects to contribute $4 million to its pension plans in fiscal 2024[190] Operational Expenses - Selling and administrative expenses include salaries and general office expenses, reflecting operational costs[177] - Research and technical expenses were $57 million in 2023, slightly up from $55 million in 2022, showing continued investment in innovation[82] - Depreciation expense for fiscal 2023 was $138 million, a slight decrease from $140 million in 2022[159] Environmental and Legal Matters - As of September 30, 2023, Cabot had $5 million reserved for environmental matters, up from $4 million in 2022[239] - Environmental expense charges were $1 million in both fiscal 2023 and 2022, with cash payments of $1 million in 2023 and $2 million in both 2022 and 2021[240] - The Company anticipates that expenditures related to environmental matters will be made over a number of years[240] Stock and Equity - The company recognized a net stock-based compensation expense of $18 million for the year ended September 30, 2023[195] - The intrinsic value of options exercised in fiscal 2023 was $2 million, compared to $4 million in 2022[221] - The aggregate intrinsic value for all options outstanding as of September 30, 2023, was $29 million[221] - The weighted average grant date fair value of options granted in fiscal 2023 was $26.28, significantly higher than $15.95 in 2022[221] Revenue Recognition - Revenue is recognized when control of goods is transferred to customers, with substantial revenue based on a point-in-time model[150] - Total revenues from external customers for fiscal 2023 were $3.931 billion, a decrease from $4.321 billion in 2022[249]

Q4 FISCAL 2023 4 Reinforcement Materials Update Structurally different business with growing and resilient results | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------------|---------|---------------------|-------|------------------|-------------|--------------------|----------------------------------------------------------------------------------------------| | | | FY EBIT | 1 | | Progression ($M) | $482 $408 | | Current Industry and Business Dynamics \n◆ Cabot is a global leader in re ...

Cabot Corporation (NYSE:CBT) Q4 2023 Earnings Conference Call November 7, 2023 8:00 AM ET Company Participants Steve Delahunt - VP of IR and Treasurer Sean Keohane - President and CEO Erica McLaughlin - EVP, CFO and Head of Corporate Strategy Conference Call Participants John Roberts - Mizuho Josh Spector - UBS Laurence Alexander - Jefferies Chris Kapsch - Loop Capital Markets David Begleiter - Deutsche Bank Operator Hello and welcome to the Q4 2023 Cabot Earnings Conference Call. At this time, all particip ...