UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): November 12, 2002 CABOT CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 1-5667 04-2271897 - ---------------------------- ------------------------ -------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) TWO SEAPORT LANE, SUITE 1300, BOSTON, MASSACHUSETTS 02210-2019 -------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (617) 345-0100 ---------------------------------------------------- (Registrant's telephone number, including area code) ---------- 1
Item 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 The Registrant's unaudited Consolidated Balance Sheets at September 30, 2002 and 2001. 99.2 The Registrant's unaudited Consolidated Statements of Income for the fiscal years ended September 30, 2002 and 2001. 99.3 The Registrant's unaudited Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2002 and 2001. Item 9. REGULATION FD DISCLOSURE The Registrant has furnished herewith its unaudited consolidated balance sheets at September 30, 2002 and 2001, its unaudited consolidated statements of income for the fiscal years ended September 30, 2002 and 2001 and its unaudited consolidated statements of cash flows for the fiscal years ended September 30, 2002 and 2001. 2
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CABOT CORPORATION Registrant Date: November 12, 2002 By: /s/ John A. Shaw -------------------------------- John A. Shaw Executive Vice President and Chief Financial Officer 3
INDEX TO EXHIBITS Exhibit Number Description - ------- ----------- 99.1 The Registrant's unaudited Consolidated Balance Sheets at September 30, 2002 and 2001. 99.2 The Registrant's unaudited Consolidated Statements of Income for the fiscal years ended September 30, 2002 and 2001. 99.3 The Registrant's unaudited Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2002 and 2001. 4
EXHIBIT 99.1 CABOT CORPORATION CONSOLIDATED BALANCE SHEETS September 30 2002 2001 ------- ------- Dollars in millions, except per share amounts (unaudited) Assets Current assets: Cash and cash equivalents $ 159 $ 364 Accounts and notes receivable, net of reserve for doubtful accounts of $4 and $4 304 267 Inventories 435 285 Prepaid expenses and other current assets 41 33 Deferred income taxes 20 19 ------- ------- Total current assets 959 968 ------- ------- Investments: Equity 48 76 Other 32 29 ------- ------- Total investments 80 105 ------- ------- Property, plant and equipment 2,019 1,856 Accumulated depreciation and amortization (1,134) (1,049) ------- ------- Net property, plant and equipment 885 807 ------- ------- Other assets: Goodwill 105 19 Intangible assets, net of accumulated amortization of $5 and $4 8 2 Deferred income taxes 4 2 Other assets 26 16 ------- ------- Total other assets 143 39 ------- ------- Total assets $ 2,067 $ 1,919 ======= =======
CABOT CORPORATION CONSOLIDATED BALANCE SHEETS September 30 2002 2001 ------ ------ Dollars in millions, except per share amounts (unaudited) Liabilities and Stockholders' Equity Current liabilities: Notes payable to banks $ 40 $ 13 Current portion of long-term debt 5 30 Accounts payable and accrued liabilities 238 243 Deferred income taxes 3 5 ------ ------ Total current liabilities 286 291 ------ ------ Long-term debt 495 419 Deferred income taxes 104 94 Other liabilities 170 138 Commitments and contingencies Minority interest 35 27 Stockholders' equity: Preferred stock: Authorized: 2,000,000 shares of $1 par value Series A Junior Participating Preferred Stock Issued and outstanding: none Series B ESOP Convertible Preferred Stock 7.75% Cumulative Issued: 75,336 shares, outstanding: 56,274 and 59,148 shares (aggregate redemption value of $56 and $59) 75 75 Less cost of shares of preferred treasury stock (40) (33) Common stock: Authorized: 200,000,000 shares of $1 par value Issued and outstanding: 61,615,503 and 62,633,252 shares 62 63 Less Cost of shares of common treasury stock (6) -- Additional paid-in capital 5 9 Retained earnings 1,120 1,078 Unearned compensation (38) (40) Deferred employee benefits (51) (54) Notes receivable for restricted stock (23) (23) Accumulated other comprehensive loss (127) (125) ------ ------ Total stockholders' equity 977 950 ------ ------ Total liabilities and stockholders' equity $2,067 $1,919 ====== ======
EXHIBIT 99.2 - -------------------------------------------------------------------------------- CABOT CORPORATION CONSOLIDATED STATEMENTS OF INCOME - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- Years ended September 30 2002 2001 In millions, except per share amounts (unaudited) - ------------------------------------------------------------------------------------------------- Net sales and other operating revenues ............................... $1,557 $1,670 Cost of sales ........................................................ 1,128 1,237 ------ ------ Gross profit ................................................. $ 429 $ 433 ====== ====== Selling and administrative expenses .................................. 219 208 Research and technical service ....................................... 48 48 Special charges ...................................................... 14 22 ------ ------ INCOME FROM OPERATIONS ....................................... $ 148 $ 155 OTHER INCOME AND EXPENSE Interest and dividend income ................................. (9) (28) Interest expense ............................................. 28 32 Special charges (income) ..................................... 3 (1) Other charges (income) ....................................... (8) 2 ------ ------ Total other income and expense ....................... 14 5 ------ ------ INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ................ 134 150 ------ ------ Provision for income taxes ........................................... (30) (42) Equity in net income of affiliated companies ......................... 5 20 Minority interest in net income ...................................... (4) (7) ------ ------ NET INCOME FROM CONTINUING OPERATIONS ................................ 105 121 DISCONTINUED OPERATIONS: Income from operations of discontinued business, net of income taxes ........................................ 1 -- Gain on sale of business, net of income taxes ................ -- 3 ------ ------ NET INCOME ........................................................... 106 124 Dividends on preferred stock ......................................... (3) (3) ------ ------ NET INCOME AVAILABLE TO COMMON SHARES ................................ $ 103 $ 121 ====== ======
DILUTED EARNINGS PER SHARE OF COMMON STOCK Continuing Operations ........................................ $ 1.48 $ 1.62 Discontinued Operations Income from Operations of Discontinued Business ...... 0.02 -- Gain on Sale of Business ............................. -- 0.04 ------ ------ Net Income ................................................... $ 1.50 $ 1.66 ====== ====== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Diluted ...................................................... 71 74
EXHIBIT 99.3 CABOT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended September 30 2002 2001 ------ ------ Dollars in millions (unaudited) Cash Flows from Operating Activities Net income $ 106 $ 124 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 109 115 Deferred tax expense (benefit) (4) 6 Equity in net income of affiliated companies (5) (20) Asset impairment charges and non-cash special items 16 14 Gain on sale of business, net of income taxes -- (3) Non-cash compensation 22 22 Other non-cash charges, net 6 23 Changes in assets and liabilities, net of the effect of the consolidation of equity affiliates: Decrease (increase) in accounts and notes receivable (1) 13 Decrease (increase) in inventories (64) (55) Increase (decrease) in accounts payable and accrued liabilities (4) (35) Decrease in income taxes payable (1) (175) Increase (decrease) in other liabilities 14 (6) Other, net (2) 6 ------ ------ Cash provided by operating activities 192 29 ------ ------ Cash Flows from Investing Activities Additions to property, plant and equipment (146) (122) Proceeds from sales of property, plant and equipment 2 4 Purchases of equity securities (9) (5) Acquisition of affiliate, net of cash acquired (89) -- Purchases of investments, excluding cash acquired -- (6) Proceeds from sale of business -- 5 Cash from consolidation of equity affiliates 10 -- ------ ------ Cash used in investing activities (232) (124) ------ ------ Cash Flows from Financing Activities Proceeds from long-term debt -- 129 Repayments of long-term debt (28) (63) Decrease in short-term debt, net (27) (7) Purchases of preferred and common stock (82) (229) Sales and issuances of preferred and common stock 6 13 Cash dividends paid to stockholders (35) (34) Cash dividends paid to minority interest stockholders (5) (3) Employee loan repayments 7 15 ------ ------ Cash used in financing activities (164) (179) ------ ------ Effect of exchange rate changes on cash (1) -- ------ ------ Increase (decrease) in cash and cash equivalents (205) (274) Cash and cash equivalents at beginning of year 364 638 ------ ------ Cash and cash equivalents at end of year $ 159 $ 364 ====== ======