Cabot Corp. (CBT) Tops Q4 EPS by 12c, Sales Miss

Cabot Corp. (NYSE: CBT) reported Q4 EPS of $0.78, $0.12 better than the analyst estimate of $0.66. Revenue for the quarter came in at $672 million versus the consensus estimate of $707.8 million.

Commenting on the results, Cabot President and CEO Patrick Prevost, said, “In fiscal 2015, we experienced mixed results across our businesses. We had a challenging year in Reinforcement Materials and Specialty Fluids, to a large extent driven by the volatility in the energy markets. In addition, our expectations for Purification Solutions were diminished due to the uncertainty around MATS, resulting in an asset impairment charge. However, we delivered a second straight year of record Performance Chemicals EBIT and saw significant improvement in operating results in our Purification Solutions segment. As a result of our discipline around cost management and net working capital, we generated cash flows from operating activities of $489 million and we returned cash to shareholders through $56 million in dividends and $96 million of share repurchases.”

Prevost continued, “During the fourth fiscal quarter, challenging macroeconomic conditions persisted, including slowing demand in China and unfavorable currency impacts. These conditions resulted in Total Segment EBIT relatively consistent with our third fiscal quarter. Adjusted EPS improved sequentially largely due to a lower operating tax rate and an $8 million benefit from LIFO accounting due to declining oil prices.”

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

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