Cabot (US:CBT)2025-02-03 23:28Financial Performance - Cabot Corporation reported diluted EPS of $1.67 and adjusted EPS of $1.76, representing a 13% increase in adjusted EPS year-over-year[3]. - Net income attributable to Cabot Corporation was $93 million, compared to $50 million in the prior year[3]. - Gross profit increased to $235 million, up from $218 million year-over-year, reflecting a gross margin improvement[35]. - Net income attributable to Cabot Corporation was $93 million, compared to $50 million in the prior year, representing an increase of 86%[36]. - Diluted earnings per share rose to $1.67, significantly higher than $0.88 in the same quarter last year[36]. - The net income attributable to Cabot Corporation for the fiscal year 2024 was $380 million, compared to $424 million in fiscal year 2023, reflecting a decrease of approximately 10.4%[42]. - Diluted earnings per share for the fiscal year 2024 were $6.72, down from $7.06 in fiscal year 2023, indicating a decline of about 4.8%[42]. Sales and Revenue - Net sales for the first quarter were $955 million, slightly down from $958 million in the same quarter last year[3]. - Cabot Corporation reported net sales of $955 million for the three months ended December 31, 2024, a slight decrease from $958 million in the same period of 2023[35]. - Cabot Corporation reported net sales of $1,000 million for the fiscal year 2024, with a slight decrease from $1,019 million in the previous year[40]. - The Reinforcement Materials segment generated sales of $611 million, while the Performance Chemicals segment reported sales of $311 million, showing a mixed performance across segments[36]. - Reinforcement Materials sales reached $611 million in the December quarter of fiscal 2025, with an EBITDA margin of 24%[47]. - Performance Chemicals sales were $311 million in the December quarter of fiscal 2025, achieving an EBITDA margin of 21%[47]. Segment Performance - EBIT for the Reinforcement Materials segment was $130 million, up 1% year-over-year, driven by volume growth in Asia Pacific and Europe, Middle East, and Africa[4]. - Performance Chemicals segment EBIT increased by 32% year-over-year to $45 million, primarily due to an 8% increase in volumes[4]. - Segment earnings before interest and taxes for Reinforcement Materials were $537 million in fiscal year 2024, a decrease from $701 million in fiscal year 2023[40]. - The company reported a total segment EBIT of $701 million for fiscal year 2024, down from $701 million in fiscal year 2023, indicating stable performance despite market challenges[40]. - The company recorded a total segment EBIT of $175 million for the December quarter of fiscal 2025[47]. - Total Segment EBITDA for the December quarter of fiscal 2025 was $212 million[47]. Cash Flow and Capital Expenditures - Cash flows from operations were $124 million, with $77 million allocated to capital expenditures and $66 million returned to shareholders through dividends and share repurchases[6]. - Cash provided by operating activities for the three months ended December 31, 2024, was $124 million, an increase from $105 million in the same period of 2023[43]. - The company experienced a cash decrease of $40 million in cash and cash equivalents, ending the period with $183 million compared to $244 million at the beginning[43]. - Additions to property, plant, and equipment amounted to $77 million for the three months ended December 31, 2024, compared to $54 million in the same period of 2023[43]. - The company paid cash dividends of $24 million to common stockholders during the three months ended December 31, 2024, slightly up from $22 million in the same period of 2023[43]. - Free cash flow for the December quarter of fiscal 2025 was reported at $47 million, with discretionary free cash flow at $114 million[47]. Financial Position - The company ended the quarter with a cash balance of $183 million and approximately $1.3 billion in liquidity[6]. - Total current assets decreased to $1,496 million from $1,605 million, primarily due to a reduction in cash and cash equivalents[38]. - Total liabilities decreased slightly to $2,127 million from $2,145 million, indicating a stable financial position[39]. - The company reported a total stockholders' equity of $1,515 million, down from $1,590 million in the previous quarter[39]. - Cabot Corporation's interest expense decreased to $18 million from $22 million, contributing to improved operational efficiency[36]. Taxation - The effective tax rate for the first quarter was 28%, with an expected range of 27% to 29% for fiscal 2025[13]. - The effective tax rate for the December quarter of fiscal 2024 was 28%, while the operating tax rate remained consistent at 28%[44]. - The company expects its operating tax rate for fiscal 2025 to be in the range of 27% to 29%[46]. Strategic Outlook - The outlook for adjusted EPS for fiscal year 2025 is projected to be in the range of $7.40 to $7.80[14]. - The company continues to execute its "Creating for Tomorrow" strategy, focusing on operational excellence and strategic growth projects[14]. - The company did not provide specific forward-looking guidance due to uncertainties related to certain items, including unusual gains and losses[29].