Cabot Corporation (NYSE: CBT) today announced results for its second quarter of fiscal year 2014.
- Strong volumes in Reinforcement Materials and Performance Materials
- Purification Solutions delivered sequential improvement in EBIT
- Announced the divestiture of the Security Materials business for approximately $20 million
- New PROPEL TM carbon black products launched for tire applications
|(In millions, except per share amounts)||Fiscal 2014||Fiscal 2013|
|Net income attributable to Cabot Corporation||$||36||$||116||$||27||$||47|
|Net earnings per share attributable to Cabot Corporation||$||0.54||$||1.77||$||0.42||$||0.73|
|Net loss per share from discontinued operations||$||(0.01||)||$||(0.02||)||$||(0.01||)||$||(0.05||)|
|Certain items per share||$||(0.28||)||$||0.09||$||(0.21||)||$||(0.53||)|
Commenting on the results, Cabot President and CEO Patrick Prevost, said, “We achieved another strong quarter of business performance in fiscal 2014. The Performance Materials segment delivered a record EBIT and volumes increased as compared to the prior year in both the Performance Materials and Reinforcement Materials segments. Demand in our key end markets improved and we commercialized new capacity. Purification Solutions EBIT improved sequentially as a result of revenue growth and lower fixed costs. At the corporate level, we saw slightly higher unallocated costs associated with increased project activity and a higher tax rate due to the expiration of the R&D tax credit in the U.S. and the geographic mix of earnings. On the strategic front,” Prevost continued, “we announced our plans to divest our Security Materials business at an attractive value for our shareholders. In addition, our new product introductions continue to accelerate and during the quarter we launched a new PROPEL TM line of carbon black products for tire applications that offer lower rolling resistance and improved durability for our tire customers.”
Financial DetailFor the second quarter of fiscal 2014, net income attributable to Cabot Corporation was $36 million ($0.54 per diluted common share). Due to the agreement to divest the Security Materials business, financial results of this business are included as discontinued operations for all periods presented. Net income includes a per share charge of $0.01 for discontinued operations. Net income also includes a per share charge of $0.28 from certain items, principally reflecting charges associated with restructuring actions and an increase in the environmental reserve. Adjusted EPS for the second quarter of fiscal 2014 was $0.83 per share.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts