Stronger volumes improve Cabot’s Q2 operating results.
Performance materials and chemicals manufacturer Cabot has reported net income of $74 million ($1.18 per diluted common share) for Q2 2017.
Adjusted earnings per share for the quarter were $0.87. Commenting on the results, Cabot president and CEO Sean Keohane, said, “We continue to see strong operating results on a year-over-year basis, driven largely by higher volumes across all segments. The reinforcement materials segment delivered a 59% year-over-year increase in EBIT as we saw improved margins and solid demand growth across all regions. Our performance chemicals segment delivered results in line with expectations as we saw robust volume growth in specialty carbons and formulations.
In addition, we returned $34 million of cash to shareholders during the quarter.” Q2 fiscal 2017 EBIT for Cabot’s reinforcement materials division increased by $20 million compared to Q2 of fiscal 2016. The increase in EBIT was principally driven by higher unit margins and volumes and improved demand in China. In the reinforcement materials segment, Cabot’s EBIT increased by $14 million compared to Q1 2017 driven by higher volumes and improved margins. Volumes increased by 6% largely due to higher volumes from the 2017 calendar year and strong demand in the tyre industry.