Cabot Corporation (CBT) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $54 million, or $ 0.85 a share in the quarter, against a net loss of $7 million, or $0.11 a share in the last year period. On an adjusted basis, earnings per share were at $0.84 for the quarter compared with $0.51 in the same period last year. Revenue during the quarter went up marginally by 1.33 percent to $611 million from $603 million in the previous year period. Gross margin for the quarter expanded 928 basis points over the previous year period to 25.70 percent. Total expenses were 86.58 percent of quarterly revenues, down from 98.01 percent for the same period last year. This has led to an improvement of 1143 basis points in operating margin to 13.42 percent.
Operating income for the quarter was $82 million, compared with $12 million in the previous year period.
Commenting on the results, Cabot President and Chief executive officer Sean Keohane, said, “I am pleased to see the continued improvement in operating results on a year-over-year basis, driven largely by volume increases across all segments. The Reinforcement Materials segment delivered a 54% year-over-year increase in EBIT as we saw improved margins and solid demand growth in China. In addition, we experienced a $9 million year-over-year increase in EBIT in Purification Solutions from significant volume growth attributable to the full implementation of the MATS regulations and the benefit from inventory builds. The Performance Chemicals segment continued to produce strong results despite some headwinds.” Keohane continued, “A significant strength of Cabot is our ability to generate robust cash flows and we achieved another strong quarter, with cash flows from operations in excess of $100 million. During the quarter, we used the cash flow to support our capital allocation priorities, including the return of $35 million to shareholders in the form of dividends and share repurchases.”
Operating cash flow improves
Cabot Corporation has generated cash of $102 million from operating activities during the quarter, up 22.89 percent or $19 million, when compared with the last year period. The company has spent $23 million cash to meet investing activities during the quarter as against cash outgo of $18 million in the last year period.
The company has spent $27 million cash to carry out financing activities during the quarter as against cash outgo of $41 million in the last year period.
Cash and cash equivalents stood at $189 million as on Dec. 31, 2016, up 125 percent or $105 million from $84 million on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
