Cabot Corp. (CBT) Misses Q2 EPS by 11c, Offers Outlook

Cabot Corp. (NYSE: CBT) reported Q2 EPS of $0.53, $0.11 worse than the analyst estimate of $0.64. Revenue for the quarter came in at $694 million versus the consensus estimate of $823 million.

Outlook

“As we look ahead, we expect some of the recent challenges, such as customer inventory destocking and the impact from high-cost inventory to be substantially behind us. We anticipate increased volumes throughout our segments as we move through the second half of our fiscal year,” Prevost said, commenting on the outlook for the Company. “However, we continue to see margin pressure in Reinforcement Materials, particularly from an increasingly competitive environment in Asia. In addition, the outlook for the Purification Solutions segment appears to be for a slower than expected ramp-up in earnings as a result of lower than anticipated demand from our coal-fired utility customers. We will continue to aggressively manage costs and implement operational improvements in order to offset some of the headwinds we are facing this year. We have tightened our capital expenditures program and anticipate spending approximately $150 million in fiscal 2015. Finally, we target free cash flow generation in fiscal 2015 of $350 million to $400 million and we will continue to return cash to shareholders through dividends and share repurchases.”

For earnings history and earnings-related data on Cabot Corp. (CBT) click here.

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