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Dec 31, 2021
Cabot Q1 2022 Earnings Report
Cabot's first quarter of fiscal year 2022 results were announced, with adjusted EPS surpassing the previous year's performance by 9%.
Key Takeaways
Cabot Corporation reported a net loss of $89 million, or $1.57 per share, but an adjusted EPS of $1.29, which is 9% higher than the first quarter of last year. The company saw strong performance in Reinforcement Materials and Performance Chemicals segments, driven by solid demand and strong pricing execution. Cabot also made progress in its Battery Materials segment and returned $40 million to shareholders through dividends and share repurchases.
Delivered strong results with adjusted EPS 9% higher than last year’s first quarter
Solid demand and strong pricing execution in the Reinforcement Materials and Performance Chemicals segments drove a 16% adjusted EPS increase sequentially.
Momentum in Battery Materials continued, with year-over-year volume growth of 58%
The company successfully concluded 2022 tire customer negotiations, and realized pricing increases in all regions while expecting volume growth in line with regional demand.
Cabot
Cabot
Cabot Revenue by Segment
Revenue by Segment
Reinforcement Materials Revenue
CapyFin.comPerformance Chemicals Revenue
CapyFin.com Forward Guidance
Cabot increased its outlook for adjusted earnings per share for fiscal year 2022 to now be in the range of $5.50 to $5.90.
Positive Outlook
- Reinforcement Materials will benefit from the calendar year 2022 customer agreements.
- Anticipate demand growth across major product lines along with particular strength in battery materials and inkjet packaging in Performance Chemicals segment.
- Outlook for discretionary free cash flow for the full year remains strong.
- Company remains on track with long-term guidance to generate over $1 billion during the next three years.
- Expect demand to improve across all of key product lines and a step up in profitability largely due to the benefit from 2022 customer agreements in the second quarter of the fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income