Cabot Corporation Reports First Quarter EPS of $0.31, Adjusted EPS of $0.66
Segment profits drive 5% year over year improvement in adjusted EPS
Key Highlights
- Total segment EBIT improves 11% year over year
-
Purification Solutions adds
$7 million EBIT in the first quarter -
Specialty Fluids EBIT sequential decline of
$11 million due to lower rental activity - Royalties from Elastomer Composites licensing agreement with Michelin running through 2022
(In millions, except per share amounts) | First Quarter | ||||||||
2013 |
2012 |
||||||||
Net sales | $ | 820 | $ | 762 | |||||
Net income attributable to Cabot Corporation | $ | 20 | $ | 46 | |||||
Net earnings per share attributable to Cabot Corporation | $ | 0.31 | $ | 0.71 | |||||
Less adjustments: | |||||||||
Net (loss) income per share from discontinued operations | $ | (0.02 | ) | $ | 0.16 | ||||
Certain items per share | $ | (0.33 | ) | $ | (0.08 | ) | |||
Adjusted EPS | $ | 0.66 | $ | 0.63 | |||||
Commenting on the results,
Prevost continued, “The integration of Norit is going very well and we
are pleased with our progress in this area. Our carbon black energy
recovery and yield technology investments and the completion of our
Fumed Metal Oxides expansion in Barry,
Financial Detail
For the first quarter of fiscal 2013, net income attributable to
Segment Results
Reinforcement Materials -- First quarter fiscal 2013 EBIT in
Reinforcement Materials decreased by
Global and regional volume changes for Reinforcement Materials for the first quarter of fiscal 2013 as compared to the same quarter of the prior year and the fourth quarter of fiscal 2012 are included in the table below:
First Quarter
Year over Year Change |
First Quarter
Sequential Change |
|||||
Global | (3%) | (4%) | ||||
Japan | (11%) | (4%) | ||||
Southeast Asia | (10%) | 2% | ||||
China | 5% | (5%) | ||||
Europe, Middle East, Africa | (13%) | (6%) | ||||
North America | (4%) | (3%) | ||||
South America | 6% | (2%) |
Performance Materials -- First quarter fiscal 2013 EBIT in
Performance Materials increased by
Advanced Technologies -- For the first quarter of fiscal 2013,
EBIT in Advanced Technologies increased by
Purification Solutions -- On
Stand-alone Norit financial results, excluding purchase accounting
impacts, for the three months ended
Cash Performance -- The Company ended the first quarter of fiscal
2013 with a cash balance of
Taxes -- During the first quarter of fiscal 2013, the Company
recorded a net tax provision of
Outlook
“We remain cautious about the near-term as we are seeing mixed results across our portfolio of businesses,” Prevost said, commenting on the outlook for the Company. “We expect global tire demand to remain weak through the second fiscal quarter. We also expect the U.S. coal-fired utilities market to continue to be affected by the low price of natural gas. In our Performance Materials Segment, we have seen strong volume improvements in all businesses in the month of January. Overall, we anticipate demand to recover through 2013 and we are well positioned to capture volume growth as a result of the capacity expansions we have made. Over the last three years, we have improved our margin structure through our pricing initiatives, investment in operational excellence and the introduction of new products, which will continue to drive earnings growth.”
Earnings Call
The Company will host a conference call with industry analysts at
About
Forward-Looking Statements -- This earnings release contains
forward-looking statements based on management’s current expectations,
estimates and projections. All statements that address expectations or
projections about the future, including our ability to meet our
long-term financial targets, actions that will drive earnings growth,
and demand for our products, including when we expect demand to recover
and expectations for growth, are forward-looking statements. Some of the
forward-looking statements may be identified by words like “expects,”
“anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar
expressions. Forward-looking statements are based on our current
expectations, assumptions, estimates and projections about Cabot's
businesses and strategies, market trends and conditions, economic
conditions and other factors. These statements are not guarantees of
future performance and are subject to risks, uncertainties, potentially
inaccurate assumptions, and other factors, some of which are beyond our
control and difficult to predict. If known or unknown risks materialize,
or should underlying assumptions prove inaccurate, our actual results
could differ materially from past results and from those expressed in
the forward-looking statement. Important factors that could cause our
results to differ materially from those expressed in the forward-looking
statements include, but are not limited to changes in raw material
costs; lower than expected demand for our products; the loss of one or
more of our important customers; our inability to complete capacity
expansions as planned; the timing of implementation of environmental
regulations; our failure to develop new products or to keep pace with
technological developments; patent rights of others; the timely
commercialization of products under development (which may be disrupted
or delayed by technical difficulties, market acceptance, competitors'
new products, as well as difficulties in moving from the experimental
stage to the production stage); demand for our customers' products;
competitors' reactions to market conditions; delays in the successful
integration of structural changes, including acquisitions or joint
ventures; the laws, regulations, policies and economic conditions,
including inflation, interest and foreign currency exchange rates, of
countries where we do business; and severe weather events that cause
business interruptions, including plant and power outages or disruptions
in supplier or customer operations. These factors are discussed more
fully in the reports we file with the
Explanation of Terms Used and Use of Non-GAAP Financial Measures -- The preceding discussion of our results and the accompanying financial tables report adjusted EPS, Total segment earnings before interest and taxes, “Total Segment EBIT”, operating tax rate and adjusted EBITDA, which are non-GAAP financial measures. Our chief operating decision-maker uses these non-GAAP financial measures to evaluate the performance of the Company in terms of profitability. We believe that these measures also assist our investors in evaluating the changes in our results and the Company's performance.
In calculating adjusted EPS, we exclude from our net income per share from continuing operations certain items of expense and income that management does not consider representative of the Company's ongoing operations. Adjusted EPS should be considered as supplemental to, and not as a replacement for, EPS determined in accordance with GAAP. A reconciliation of adjusted EPS to EPS from continuing operations, the most directly comparable GAAP financial measure, and the certain items that are excluded from our calculation of adjusted EPS, are provided in the table titled "Certain Items and Reconciliation of Adjusted EPS.”
Total Segment EBIT is a non-GAAP performance measure, and should not be considered an alternative for Income (loss) from continuing operations before taxes, the most directly comparable GAAP financial measure. In calculating Total Segment EBIT, we exclude “certain items”, meaning items that management does not consider representative of our fundamental segment results, as well as items that are not allocated to our business segments, such as interest expense and other corporate costs. Our Chief Operating Decision Maker uses segment EBIT to evaluate the operating results of each segment and to allocate resources to the segments. We believe that this non-GAAP measure provides useful supplemental information for our investors as it is an important indicator of the Company’s operational strength and performance. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another. A reconciliation of Total Segment EBIT to Income (loss) from continuing operations before income taxes and equity in net earnings of affiliate companies is provided in the table titled, “Summary Results by Segments.”
The term “operating tax rate” is a non-GAAP financial measure and represents the tax rate on our recurring operating results. This rate excludes discrete tax items, which are unusual or infrequent items that are excluded from the estimated annual effective tax rate and other tax items, including the impact of the timing of losses in certain jurisdictions, cumulative rate adjustment and the impact of certain items on both operating income and tax provision.
“Adjusted EBITDA” is a non-GAAP financial measure and refers to earnings before interest, taxes, depreciation and amortization, excluding items that management does not consider representative of the fundamental segment results. A reconciliation of Adjusted EBITDA from segment EBIT for the first quarter of fiscal 2013 is provided on the investor portion of our website at http://investor.cabot-corp.com, under the Non-GAAP Reconciliations section.
|
||||||||
CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Periods ended December 31 | Three Months | |||||||
Dollars in millions, except per share amounts (unaudited) | 2012 | 2011 | ||||||
Net sales and other operating revenues | $ | 820 | $ | 762 | ||||
Cost of sales | 673 | 619 | ||||||
Gross profit | 147 | 143 | ||||||
Selling and administrative expenses | 73 | 65 | ||||||
Research and technical expenses | 19 | 17 | ||||||
Income from operations | 55 | 61 | ||||||
Other income and (expense) | ||||||||
Interest and dividend income | 1 | 1 | ||||||
Interest expense | (16 | ) | (10 | ) | ||||
Other income | 1 | 3 | ||||||
Total other income and (expense) | (14 | ) | (6 | ) | ||||
Income from continuing operations before income taxes and equity in net earnings of affiliated companies | ||||||||
41 | 55 | |||||||
Provision for income taxes | (19 | ) | (16 | ) | ||||
Equity in net earnings of affiliated companies, net of tax | 3 | 1 | ||||||
Income from continuing operations | 25 | 40 | ||||||
(Loss) Income from discontinued operations, net of tax (A) | (1 | ) | 11 | |||||
Net income | 24 | 51 | ||||||
Net income attributable to noncontrolling interests, net of tax | 4 | 5 | ||||||
Net income attributable to Cabot Corporation | $ | 20 | $ | 46 | ||||
Diluted earnings per share of common stock attributable to Cabot Corporation |
||||||||
Continuing operations |
$ | 0.33 | $ | 0.55 | ||||
Discontinued operations (A) | (0.02 | ) | 0.16 | |||||
Net income attributable to Cabot Corporation | $ | 0.31 | $ | 0.71 | ||||
Weighted average common shares outstanding | ||||||||
Diluted | 64.1 | 64.2 | ||||||
|
(A) Amounts relate to the divesture of the Supermetals Business.
|
|||||||||
CABOT CORPORATION SUMMARY RESULTS BY SEGMENTS | |||||||||
Periods ended December 31 | Three Months | ||||||||
Dollars in millions, except per share amounts (unaudited) | 2012 | 2011 | |||||||
Sales | |||||||||
Reinforcement Materials | $ | 475 | $ | 489 | |||||
Performance Materials | 196 | 205 | |||||||
Specialty Carbons and Compounds | 132 | 151 | |||||||
Fumed metal oxides | 64 | 54 | |||||||
Advanced Technologies | 38 | 39 | |||||||
Inkjet colorants | 16 | 15 | |||||||
Aerogel | 5 | 4 | |||||||
Security Materials | 1 | 2 | |||||||
Elastomer Composites | 8 | 4 | |||||||
Specialty Fluids | 8 | 14 | |||||||
Purification Solutions | 93 | - | |||||||
Segment sales | 802 |
|
733 | ||||||
Unallocated and other (A) | 18 | 29 | |||||||
Net sales and other operating revenues | $ | 820 | $ | 762 | |||||
Segment Earnings Before Interest and Taxes | |||||||||
Reinforcement Materials | $ | 50 | $ | 55 | |||||
Performance Materials | 26 | 21 | |||||||
Advanced Technologies | 7 | 5 | |||||||
Purification Solutions | 7 | - | |||||||
Total Segment Earnings Before Interest and Taxes (B) | 90 | 81 | |||||||
Unallocated and Other | |||||||||
Interest expense | (16 | ) | (10 | ) | |||||
Certain items (C) | (20 | ) | (5 | ) | |||||
Unallocated corporate costs | (13 | ) | (14 | ) | |||||
General unallocated income (D) | 3 | 4 | |||||||
Less: Equity in net earnings of affiliated companies, net of tax | (3 | ) | (1 | ) | |||||
Income from continuing operations before income taxes and equity in | |||||||||
net earnings of affiliated companies | 41 | 55 | |||||||
Provision for income taxes (including tax certain items) | (19 | ) | (16 | ) | |||||
Equity in net earnings of affiliated companies, net of tax | 3 | 1 | |||||||
Income from continuing operations | 25 | 40 | |||||||
(Loss) Income from discontinued operations, net of tax (E) | (1 | ) | 11 | ||||||
Net income | 24 | 51 | |||||||
Net income attributable to noncontrolling interests, net of tax | 4 | 5 | |||||||
Net income attributable to Cabot Corporation | $ | 20 | $ | 46 | |||||
Diluted earnings per share of common stock attributable to Cabot Corporation | |||||||||
Continuing operations | $ | 0.33 | $ | 0.55 | |||||
Discontinued operations (E) | (0.02 | ) | 0.16 | ||||||
Net income attributable to Cabot Corporation | $ | 0.31 | $ | 0.71 | |||||
Adjusted earnings per share | |||||||||
Adjusted EPS (F) | $ | 0.66 | $ | 0.63 | |||||
Weighted average common shares outstanding | |||||||||
Diluted | 64.1 | 64.2 | |||||||
|
|||||||||
(A) | Unallocated and other reflects royalties paid by equity affiliates, other operating revenues, external shipping and handling fees, the impact of unearned revenue and the removal of 100% of the sales of an equity method affiliate. | |
(B) | Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes equity in net earnings of affiliated companies, royalty income, and allocated corporate costs. | |
(C) | Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS table. | |
(D) | General unallocated income (expense) includes foreign currency transaction gains (losses), interest income, dividend income, the profit related to unearned revenue, and the impact of LIFO accounting. | |
(E) | Amounts relate to the divesture of the Supermetals business. | |
(F) | Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS table. |
CABOT CORPORATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
December 31, | September 30, | ||||||
2012 | 2012 | ||||||
Dollars in millions, except share and per share amounts | (unaudited) | (audited) | |||||
Current assets: | |||||||
Cash and cash equivalents | $ | 91 | $ | 120 | |||
Accounts and notes receivable, net of reserve for doubtful accounts of $5 | 619 | 687 | |||||
Inventories: | |||||||
Raw materials | 143 | 131 | |||||
Work in process | 5 | 5 | |||||
Finished goods | 393 | 351 | |||||
Other | 46 | 46 | |||||
Total inventories | 587 | 533 | |||||
Prepaid expenses and other current assets | 82 | 71 | |||||
Deferred income taxes | 36 | 32 | |||||
Total current assets | 1,415 | 1,443 | |||||
Net property, plant and equipment | 1,566 | 1,552 | |||||
Goodwill | 494 | 480 | |||||
Equity affiliates | 116 | 115 | |||||
Intangible assets, net | 318 | 330 | |||||
Assets held for rent | 48 | 46 | |||||
Notes receivable for sale of business | 225 | 242 | |||||
Deferred income taxes | 98 | 94 | |||||
Other assets | 96 | 97 | |||||
Total assets | $ | 4,376 | $ | 4,399 |
|
|||||||||
CABOT CORPORATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||||
December 31, | September 30, | ||||||||
2012 | 2012 | ||||||||
Dollars in millions, except share and per share amounts | (unaudited) | (audited) | |||||||
Current liabilities: | |||||||||
Notes payable to banks | $ | 72 | $ | 62 | |||||
Accounts payable and accrued liabilities | 504 | 606 | |||||||
Income taxes payable | 27 | 59 | |||||||
Deferred income taxes | 6 | 7 | |||||||
Current portion of long-term debt | 188 | 185 | |||||||
Total current liabilities | 797 | 919 | |||||||
Long-term debt | 1,241 | 1,172 | |||||||
Deferred income taxes | 54 | 55 | |||||||
Other liabilities | 315 | 314 | |||||||
Stockholders' equity: | |||||||||
Preferred stock: | |||||||||
Authorized: 2,000,000 shares of $1 par value | |||||||||
Issued and outstanding: None and none | — | — | |||||||
Common stock: | |||||||||
Authorized: 200,000,000 shares of $1 par value | |||||||||
Issued: 63,740,510 and 63,600,928 shares | |||||||||
Outstanding: 63,994,075 and 63,347,362 shares | 64 | 64 | |||||||
Less cost of 253,565 and 253,565 shares of common treasury stock | (8 | ) | (8 | ) | |||||
Additional paid-in capital | 22 | 20 | |||||||
Retained earnings | 1,660 | 1,653 | |||||||
Deferred employee benefits | (7 | ) | (8 | ) | |||||
Accumulated other comprehensive income | 107 | 92 | |||||||
Total Cabot Corporation stockholders' equity | 1,838 | 1,813 | |||||||
Noncontrolling interests | 131 | 126 | |||||||
Total equity | 1,969 | 1,939 | |||||||
Total liabilities and equity | $ | 4,376 | $ | 4,399 |
CABOT CORPORATION | |||||||||||||||||||||||||||||||||||||||
Fiscal 2012 | Fiscal 2013 | ||||||||||||||||||||||||||||||||||||||
Dollars in millions, except per share amounts (unaudited) |
|||||||||||||||||||||||||||||||||||||||
Dec. Q. | Mar. Q. | June Q. | Sept. Q. | FY | Dec. Q. | Mar. Q. | June Q. | Sept. Q. | FY | ||||||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||||||||||
Reinforcement Materials | 489 | 534 | 517 | 479 | 2,019 | 475 | - | - | - | 475 | |||||||||||||||||||||||||||||
Performance Materials | 205 | 235 | 247 | 227 | 914 | 196 | - | - | - | 196 | |||||||||||||||||||||||||||||
Specialty Carbons and Compounds | 151 | 173 | 181 | 159 | 664 | 132 | - | - | - | 132 | |||||||||||||||||||||||||||||
Fumed metal oxides | 54 | 62 | 66 | 68 | 250 | 64 | - | - | - | 64 | |||||||||||||||||||||||||||||
Advanced Technologies | 39 | 57 | 57 | 57 | 210 | 38 | - | - | - | 38 | |||||||||||||||||||||||||||||
Inkjet colorants | 15 | 15 | 18 | 18 | 66 | 16 | - | - | - | 16 | |||||||||||||||||||||||||||||
Aerogel | 4 | 5 | 3 | 6 | 18 | 5 | - | - | - | 5 | |||||||||||||||||||||||||||||
Security Materials | 2 | 3 | 2 | 2 | 9 | 1 | - | - | - | 1 | |||||||||||||||||||||||||||||
Elastomer Composites | 4 | 7 | 6 | 6 | 23 | 8 | - | - | - | 8 | |||||||||||||||||||||||||||||
Specialty Fluids | 14 | 27 | 28 | 25 | 94 | 8 | - | - | - | 8 | |||||||||||||||||||||||||||||
Purification Solutions (A) | - | - | - | 61 | 61 | 93 | - | - | - | 93 | |||||||||||||||||||||||||||||
Segment Sales | 733 | 826 | 821 | 824 | 3,204 | 802 | - | - | - | 802 | |||||||||||||||||||||||||||||
Unallocated and other (B) | 29 | 18 | 25 | 24 | 96 | 18 | - | - | - | 18 | |||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||
Net sales and other operating revenues | $ | 762 | $ | 844 | $ | 846 | $ | 848 | $ | 3,300 | $ | 820 | $ | - | $ | - | $ | - | $ | 820 | |||||||||||||||||||
Segment Earnings Before Interest and Taxes | |||||||||||||||||||||||||||||||||||||||
Reinforcement Materials | 55 | 72 | 59 | 41 | 227 | 50 | - | - | - | 50 | |||||||||||||||||||||||||||||
Performance Materials | 21 | 35 | 38 | 34 | 128 | 26 | - | - | - | 26 | |||||||||||||||||||||||||||||
Advanced Technologies | 5 | 16 | 12 | 16 | 49 | 7 | - | - | - | 7 | |||||||||||||||||||||||||||||
Purification Solutions (A) | - | - | - | 5 | 5 | 7 | - | - | - | 7 | |||||||||||||||||||||||||||||
Total Segment Earnings Before Interest and Taxes (C) | 81 | 123 | 109 | 96 | 409 | 90 | - | - | - | 90 | |||||||||||||||||||||||||||||
Unallocated and Other | |||||||||||||||||||||||||||||||||||||||
Interest expense | (10 | ) | (9 | ) | (11 | ) | (16 | ) | (46 | ) | (16 | ) | - | - | - | (16 | ) | ||||||||||||||||||||||
Certain items (D) | (5 | ) | (9 | ) | (7 | ) | (30 | ) | (51 | ) | (20 | ) | - | - | - | (20 | ) | ||||||||||||||||||||||
Unallocated corporate costs | (14 | ) | (18 | ) | (12 | ) | (12 | ) | (56 | ) | (13 | ) | - | - | - | (13 | ) | ||||||||||||||||||||||
General unallocated income (expense) (E) | 4 | (8 | ) | 3 | 1 | - | 3 | - | - | - | 3 | ||||||||||||||||||||||||||||
Less: Equity in net earnings of affiliated companies, net of tax | (1 | ) | (3 | ) | (4 | ) | (3 | ) | (11 | ) | (3 | ) | - | - | - | (3 | ) | ||||||||||||||||||||||
Income from continuing operations before income taxes and equity in net earnings of affiliated companies | |||||||||||||||||||||||||||||||||||||||
55 | 76 | 78 | 36 | 245 | 41 | - | - | - | 41 | ||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||
Provision for income taxes (including tax certain items) | (16 | ) | (23 | ) | (16 | ) | - | (55 | ) | (19 | ) | - | - | - | (19 | ) | |||||||||||||||||||||||
Equity in net earnings of affiliated companies, net of tax | 1 | 3 | 4 | 3 | 11 | 3 | - | - | - | 3 | |||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||
Income from continuing operations | 40 | 56 | 66 | 39 | 201 | 25 | - | - | - | 25 | |||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax (F) | 11 | 189 | 4 | 1 | 205 | (1 | ) | - | - | - | (1 | ) | |||||||||||||||||||||||||||
Net income | 51 | 245 | 70 | 40 | 406 | 24 | - | - | - | 24 | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 5 | 5 | 4 | 4 | 18 | 4 | - | - | - | 4 | |||||||||||||||||||||||||||||
Net income attributable to Cabot Corporation | $ | 46 | $ | 240 | $ | 66 | $ | 36 | $ | 388 | $ | 20 | $ | - | $ | - | $ | - | $ | 20 | |||||||||||||||||||
Diluted earnings per share of common stock | |||||||||||||||||||||||||||||||||||||||
attributable to Cabot Corporation | |||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.55 | $ | 0.78 | $ | 0.96 | $ | 0.54 | $ | 2.83 | $ | 0.33 | $ | - | $ | - | $ | - | $ | 0.33 | |||||||||||||||||||
Discontinued operations (F) | 0.16 | 2.92 | 0.06 | 0.02 | 3.16 | (0.02 | ) | - | - | - | (0.02 | ) | |||||||||||||||||||||||||||
Net income attributable to Cabot Corporation | $ | 0.71 | $ | 3.70 | $ | 1.02 | $ | 0.56 | $ | 5.99 | $ | 0.31 | $ | - | $ | - | $ | - | $ | 0.31 | |||||||||||||||||||
Adjusted earnings per share | |||||||||||||||||||||||||||||||||||||||
Adjusted EPS (G) | $ | 0.63 | $ | 0.96 | $ | 1.00 | $ | 0.73 | $ | 3.32 | $ | 0.66 | $ | - | $ | - | $ | - | $ | 0.66 | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||||
Diluted | 64.2 | 64.0 | 64.3 | 64.2 | 64.2 | 64.1 | - | - | - | 64.1 | |||||||||||||||||||||||||||||
(A) | Purification Solutions includes two months of results in fiscal 2012 due to the acquisition of Norit N.V. by Cabot Corporation on July 31, 2012. | |
(B) | Unallocated and other reflects royalties paid by equity affiliates, other operating revenues, external shipping and handling fees, the impact of unearned revenue and the removal of 100% of the sales of an equity method affiliate. | |
(C) | Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes equity in net earnings of affiliated companies, royalty income, and allocated corporate costs. | |
(D) | Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS table. | |
(E) | General unallocated income (expense) includes foreign currency transaction gains (losses), interest income, dividend income, the profit related to unearned revenue, and the impact of LIFO accounting. | |
(F) | Amounts relate to the divesture of the Supermetals business. | |
(G) | Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS table. |
CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS | |||||||||||||||||||||||||||||||||||||
TABLE 1: DETAIL OF CERTAIN ITEMS | |||||||||||||||||||||||||||||||||||||
Periods ended December 31 | |||||||||||||||||||||||||||||||||||||
Dollars in millions, except per share amounts (unaudited) |
Three Months |
||||||||||||||||||||||||||||||||||||
2012 | 2012 | 2011 | 2011 | ||||||||||||||||||||||||||||||||||
$ | per share(A) | $ | per share(A) | ||||||||||||||||||||||||||||||||||
Certain items before and after income taxes |
|||||||||||||||||||||||||||||||||||||
Global restructuring activities | $ | (6 | ) | (0.06 | ) | $ | (3 | ) | (0.04 | ) | |||||||||||||||||||||||||||
Acquisition related charges | (14 | ) | (0.15 | ) | — | — | |||||||||||||||||||||||||||||||
Environmental reserves and legal settlements | — | — | (2 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||
Certain items before tax | (20 | ) | (0.21 | ) | (5 | ) | (0.06 | ) | |||||||||||||||||||||||||||||
Tax impact of certain items | 6 | 1 | |||||||||||||||||||||||||||||||||||
Certain items after tax | (14 | ) | (0.21 | ) | (4 | ) | (0.06 | ) | |||||||||||||||||||||||||||||
Tax-related certain items | |||||||||||||||||||||||||||||||||||||
Tax impact of certain foreign exchange losses | (7 | ) | (0.11 | ) | — | — | |||||||||||||||||||||||||||||||
Discrete tax items | — | (0.01 | ) | (2 | ) | (0.02 | ) | ||||||||||||||||||||||||||||||
Total tax-related certain items | (7 | ) | (0.12 | ) | (2 | ) | (0.02 | ) | |||||||||||||||||||||||||||||
Total certain items after tax | (21 | ) | (0.33 | ) | (6 | ) | (0.08 | ) | |||||||||||||||||||||||||||||
Discontinued operations after income taxes (B) |
|||||||||||||||||||||||||||||||||||||
CSM business divestiture after tax | (1 | ) | (0.02 | ) | 11 | 0.16 | |||||||||||||||||||||||||||||||
Total discontinued operations after tax | $ | (1 | ) | $ | (0.02 | ) | $ | 11 | 0.16 | ||||||||||||||||||||||||||||
TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM | |||||||||||||||||||||||||||||||||||||
Periods ended December 31 | |||||||||||||||||||||||||||||||||||||
Dollars in millions, Pre-Tax (unaudited) | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Statement of Operations Line Item (C) |
|||||||||||||||||||||||||||||||||||||
Cost of Sales | $ | (14 | ) | $ | (3 | ) | |||||||||||||||||||||||||||||||
Selling and administrative expenses | (5 | ) | (2 | ) | |||||||||||||||||||||||||||||||||
Research and technical expenses | $ | (1 | ) | — | |||||||||||||||||||||||||||||||||
Total certain items | $ | (20 | ) | $ | (5 | ) | |||||||||||||||||||||||||||||||
TABLE 3: RECONCILIATION OF TAX CERTAIN ITEMS | |||||||||||||||||||||||||||||||||||||
Periods ended December 31 | |||||||||||||||||||||||||||||||||||||
Dollars in millions (unaudited) | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Reconciliation of Provision for income taxes, excluding certain items to Provision for income taxes |
|||||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | (19 | ) | $ | (16 | ) | |||||||||||||||||||||||||||||||
Tax impact of certain items | 6 | 1 | |||||||||||||||||||||||||||||||||||
Less: Tax related certain items | (7 | ) | (2 | ) | |||||||||||||||||||||||||||||||||
Provision for income taxes, excluding certain items | $ | (18 | ) | $ | (15 | ) | |||||||||||||||||||||||||||||||
TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FISCAL 2012 and FISCAL 2013 | |||||||||||||||||||||||||||||||||||||
NON-GAAP MEASURE: | |||||||||||||||||||||||||||||||||||||
Periods ended (unaudited) | Fiscal 2012(A) | Fiscal 2013(A) | |||||||||||||||||||||||||||||||||||
Dec. Q | Mar. Q | Jun. Q | Sept. Q | FY 2012 YTD | Dec. Q | Mar. Q | Jun. Q | Sept. Q | FY 2013 YTD | ||||||||||||||||||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS |
|||||||||||||||||||||||||||||||||||||
Net income per share attributable to Cabot Corporation | $ | 0.71 | $ | 3.70 | $ | 1.02 | $ | 0.56 | $ | 5.99 | $ | 0.31 | $ | 0.31 | |||||||||||||||||||||||
Less: Net income per share from discontinued operations(B) | 0.16 | 2.92 | 0.06 | 0.02 | 3.16 | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||||||||
Net income per share from continuing operations | $ | 0.55 | $ | 0.78 | $ | 0.96 | $ | 0.54 | $ | 2.83 | $ | 0.33 | $ | 0.33 | |||||||||||||||||||||||
Less: Certain items after tax | (0.08 | ) | (0.18 | ) | (0.04 | ) | (0.19 | ) | (0.49 | ) | (0.33 | ) | (0.33 | ) | |||||||||||||||||||||||
Adjusted earnings per share | $ | 0.63 | $ | 0.96 | $ | 1.00 | $ | 0.73 | $ | 3.32 | $ | 0.66 | $ | 0.66 | |||||||||||||||||||||||
(A) | Per share amounts are calculated after tax. | ||||||||||||||||||||||||||||||||||||
(B) | Amounts relate primarily to the divesture of the Supermetals Business. | ||||||||||||||||||||||||||||||||||||
(C) | This table indicates the line items where certain items are recorded in the table titled Cabot Corporation Consolidated Statements of Operations. |
Source:
Cabot Corporation
Investor Contact:
Erica McLaughlin,
617-342-6090