Cabot (US:CBT)2023-11-21 16:00Financial 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]