MOSCOW (MRC) -- Cabot Corporation reported fourth-quarter net income up 46.3% year-on-year (YOY), to USD60 million, on net sales up 2.6%, to USD746 million, said Chemweek.
Adjusted earnings totaled USD1.18/share, up 71.0% YOY and well ahead of analysts’ consensus estimate of 88 cents/share, as reported by Refinitiv (New York, New York). End-market recovery drove the gains in earnings and sales, with substantial recovery on a sequential basis.
"We saw a strengthening recovery in our end markets. Improving demand trends, robust unit margins, disciplined operational execution, and strong performance in our targeted growth initiatives resulted in year-over-year and sequential improvements in financial results,” says Cabot president and CEO Sean Keohane. “Reinforcement materials delivered…strong unit margins and solid volumes. Performance chemicals results improved meaningfully compared to the prior year quarter due to higher sales volumes and improved product mix in our specialty carbons and compounds product lines."
Reinforcement materials segment sales declined 1.1% YOY, to USD375 million, while segment EBIT was up 87.2%, to USD88 million. Performance chemicals segment sales increased 10.3% YOY, to USD267 million, while segment was up 31.7%, to USD54 million. Purification solutions segment sales were flat YOY, at USD59 million, and the segment posted a USD2-million loss, also flat YOY.
As per MRC, Cabot Corp. (Boston, Massachusetts) reports a fiscal fourth-quarter net loss of USD272 million, down from income of USD33 million in the year-ago period. Sales totaled USD659 million, down 20% year-over-year (YOY) from USD827 million. The loss includes USD310 million in after-tax charges, mainly related to the sale and asset impairment of the company’s lignite mine in Texas. Adjusted earnings per share came to USD0.68, down 35% YOY from USD1.05, but well ahead of the average analyst estimate of USD0.58 as compiled by Zacks Investment Research.
We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.
Cabot Corporation is an American specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company operates in over 20 countries with 36 manufacturing plants, eight research and development facilities and 28 sales offices.
MRC