Cabot Corporation Announces Unaudited Consolidated Earnings Results for First Quarter Ended December 31, 2014 ; Provides Financial Guidance for the Fiscal Year 2015
January 29, 2015 at 02:51 am IST
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Cabot Corporation announced unaudited consolidated earnings results for first quarter ended December 31, 2014. For the quarter, the company reported net sales and other operating revenues of $812 million, income from operations of $64 million, income from continuing operations before income taxes and equity in earnings of affiliated companies of $51 million, income from continuing operations of $49 million or $0.69 per diluted share, net income attributable to company of $45 million or $0.69 per diluted share, cash provided by operating activities of $56 million, additions to property, plant and equipment of $41 million compared to the net sales and other operating revenues of $898 million, income from operations of $87 million, income from continuing operations before income taxes and equity in earnings of affiliated companies of $109 million, income from continuing operations of $87 million or $1.24 per diluted share, net income attributable to company of $80 million or $1.23 per diluted share, net cash used in operating activities of $18 million, additions to property, plant and equipment of $42 million for the same quarter a year ago. During the first quarter, the company generated $133 million of adjusted EBITDA. EBIT was $6 million lower than fourth quarter of fiscal 2014, primarily due to 6% lower volumes. The volume decline was driven by customer inventory destocking, primarily in China; and seasonally weaker demand in Europe and the Americas.
The company anticipated increased volumes in the second half of fiscal year 2015 in the Purification Solutions and Performance Chemicals segments. The company will continue to apply cost reduction measures, implement operational improvements, and company have reduced expected capital expenditures for fiscal 2015. The company anticipated strong cash flows due to the benefit of lower oil prices on net working capital, which will allow to remain flexible with regard to share repurchases given the increased authorization that has been put in place. It anticipates operating tax rate for fiscal 2015 to be between 27% and 29%.
Cabot Corporation is a global specialty chemicals and performance materials company. The Company operates through two segments: Reinforcement Materials and Performance Chemicals. The Reinforcement Materials segment combines reinforcing carbons, engineered elastomer composites and EVOLVE Sustainable Solutions product. The reinforcing carbons products are used in tires and industrial products. In Performance Chemicals, it designs, manufacture and sell materials that deliver performance in a range of customer applications across the automotive, construction, infrastructure, inkjet printing, electronics, and consumer products sectors and in applications related to the generation, transmission and storage of energy. The Performance Chemicals segment combine specialty carbons, specialty compounds, battery materials, fumed metal oxides, aerogel and inkjet product lines. Its products include Carbon black, specialty carbons, battery materials, fumed silica, aerogel and inkjet colorants.
Cabot Corporation Announces Unaudited Consolidated Earnings Results for First Quarter Ended December 31, 2014 ; Provides Financial Guidance for the Fiscal Year 2015