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TheStreet Open House

Cabot Corp Reports Second Quarter Adjusted EPS Of $0.83 And Diluted EPS Of $0.54

Stocks in this article: CBT

Cabot Corporation (NYSE: CBT) today announced results for its second quarter of fiscal year 2014.

Key Highlights

  • 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
Second   First Second   First

Quarter

 

6 Months

 

Quarter

 

6 Months

 
Net sales $ 898 $ 1,796 $ 840 $ 1,659
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
Less Adjustments:
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 )
Adjusted EPS   $ 0.83     $ 1.70     $ 0.64     $ 1.31  

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 Detail

For 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.

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