BOSTON--(BUSINESS WIRE)--Oct. 20, 2015--
On October 20, 2015, Cabot
Corporation (NYSE: CBT) announced its intention to restructure its
operations with anticipated cost savings of approximately $50 million in
fiscal 2016 as compared to fiscal 2015. As proposed, the plan would
result in the reduction of approximately 300 positions globally and the
savings are expected to begin in the second quarter of fiscal 2016.
Commenting on the restructuring plan, Cabot President and CEO Patrick
Prevost, said, “Due to the challenging macroeconomic conditions facing
our businesses, including lower oil prices, slowing demand in Asia and
South America and less favorable foreign currency exchange rates, we are
in need of adjusting our Company’s cost structure to improve our
competitiveness. These are difficult decisions because we recognize they
will impact our valued employees, their families and the communities
where we operate.”
The Company expects the restructuring plan, which is subject to local
consultation requirements and processes in certain locations, to result
in a pre-tax charge to earnings of approximately $35 million, mainly
comprised of severance and employee benefits. Net cash outlays related
to these actions are expected to be approximately $30 million,
substantially all of which is expected to be paid during fiscal 2016.
Prevost continued, “This restructuring plan will contribute to our
stated target of delivering an improvement of $0.75 of adjusted earnings
per share in fiscal 2016 as compared to fiscal 2015. In addition to the
restructuring, the company is focused on operational, technological and
commercial actions to maintain and extend its global business and
technology leadership positions. Value creation for our shareholders
remains the key objective of our short- and long-term strategy.”
About Cabot Corporation
Cabot
Corporation (NYSE: CBT) is a global specialty chemicals and performance
materials company, headquartered in Boston, Massachusetts. The company
is a leading provider of rubber
and specialty
carbons, activated
carbon, inkjet
colorants, cesium
formate drilling fluids, fumed
silica, and aerogel.
For more information on Cabot, please visit the company’s website at: http://www.cabotcorp.com.
Forward-Looking Statements
Certain
statements in this release relate to future events and expectations and
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as “expect”,
“estimate”, “will”, “intend”, or similar words or expressions often
identify forward-looking statements. All statements other than
statements of historical fact are forward-looking statements, including,
without limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance, and we do not undertake to update our
forward-looking statements. Cabot’s actual results may differ materially
from those described or implied by our forward-looking statements based
on a number of factors, including the factors described in detail under
“Item 1A. Risk Factors” in our Form 10-K filed with the SEC on November
26, 2014 for the year ended September 30, 2014.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151020006831/en/
Source: Cabot Corporation
Cabot Corporation
Investor Contact:
Erica McLaughlin, (617)
342-6090
