Cabot Q2 2021 Earnings Report
Key Takeaways
Cabot Corporation reported strong second quarter fiscal year 2021 results, with a diluted EPS of $1.30 and a record adjusted EPS of $1.38. The company's global footprint and operational agility, combined with strong demand in key end markets, drove year-over-year and sequential growth in core businesses.
GAAP EPS of $1.30, compared to a loss of $0.01 in the prior fiscal year second quarter.
Record Adjusted EPS of $1.38, compared to $0.77 in the prior fiscal year second quarter
Second quarter EBIT in Reinforcement Materials increased 46% year over year to a record high of $89 million
Performance Chemicals EBIT increased by $27 million compared to the second quarter of fiscal 2020 to $58 million, driven by 11% higher volumes
Cabot
Cabot
Cabot Revenue by Segment
Forward Guidance
Cabot expects adjusted earnings per share for the full fiscal year of 2021 to be in the range of $4.70 to $4.95.
Positive Outlook
- Continued demand strength across segments.
- Strength of portfolio
- Agility of supply chain network
- Value customers place on Cabot’s product offerings
- Emerging from the COVID crisis a stronger company
Challenges Ahead
- Flow-through of higher raw material costs in Asia
- Moderating volumes into automotive applications due to the semi-conductor chip shortage
- Increased fixed costs due to the timing of scheduled maintenance activities.
- Some impact from the flow-through of higher raw material costs in Asia
- Moderating volumes into automotive applications due to the semi-conductor chip shortage
Revenue & Expenses
Visualization of income flow from segment revenue to net income