CABOT ANNOUNCES 1991 FISCAL YEAR OPERATING RESULTS
CABOT ANNOUNCES 1991 FISCAL YEAR OPERATING RESULTS BOSTON, Nov. 4 /PRNewswire/ -- Cabot Corporation (NYSE: CBT) today
reported income from its continuing operations of $39.8 million, or $1.69 per common share, for its fiscal year ended Sept. 30, 1991, compared with restated income of $41.9 million, or $1.55 per common share, last year. Net sales and other operating revenues from Cabot's continuing operations declined slightly to $1.48 billion from $1.55 billion in 1990.
For the fourth quarter ended Sept. 30, 1991, Cabot posted income from continuing operations of $4 million, or 17 cents per common share, compared with restated income of $11.6 million, or 43 cents per common share, last year. Fourth quarter revenues from the company's continuing operations declined to $323.7 million from $378.9 million last year due primarily to lower LNG sales caused by weak natural gas prices. Cabot Chairman Samuel W. Bodman indicated the recession had a severe impact on Cabot's earnings in both the quarter and the fiscal year, but added, "Our enthusiasm remains. We have and will continue to make significant reductions in costs. We have divested non-performing and non-strategic assets and have focused intently on our core operations. We have strengthened our research and product development efforts and have expanded our global operations to capitalize on rapidly growing markets." Bodman said the company was concentrating on improving financial performance in the face of economic and industrial weakness adding, "If we perform during difficult times, Cabot will thrive when good times return." Fiscal year 1991 income applicable to primary common shares was $123.5 million, or $5.80 per share, vs. $67.2 million, or $2.73 per share, last year. The 1991 results include a $77.9 million, or $3.66 per share, gain associated with the divestiture of Cabot's oil and gas exploration and production subsidiary through an exchange offer completed during the second quarter. Cabot reported a fourth quarter loss applicable to primary common shares of $3.2 million, or 18 cents per share, compared with $9.2 million, or 37 cents per share, last year. The loss reflects a $6.3 million adjustment to the estimated gain recorded in the second quarter for the exchange offer. Exclusive of the gain adjustment, income would have been $3.1 million, or 17 cents per share, compared with $9.2 million, or 37 cents per share, last year. Cabot's total operating profit from continuing operations declined in the 1991 fiscal year to $112.7 million from $144.8 million last year. Fourth quarter operating profit from continuing operations declined to $10.6 million from $29.8 million. The company's operating results were affected throughout the year by the economic recession. Weakened demand put pressure on margins and amplified the effect on the company's financial performance of uncapitalized costs associated with significant geographic and business expansion. At the same time, weak natural gas prices adversely affected Cabot's LNG operating results. Cabot Corporation is a Boston-based, Fortune 300 company with operations in specialty chemicals and materials, and energy. The 109-year-old company has annual sales of $1.5 billion. CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES Summary of Results of Operations (thousands of dollars) Three months ended Sept. 30 1991 1990 Net sales and other operating revenues $323,696 $378,945 Income before income taxes 4,395 11,010 Provision for U.S. and foreign income taxes (3,229) (5,381) Equity in net income of affiliated companies 2,879 5,964 Income from continuing operations 4,045 11,593 Income (loss) from discont. operations --- (1,463) Gain on disposal of discontinued operations (6,320) --- Net income (2,275) 10,130 Preferred dividend (931) (955) Income applicable to primary common shares $(3,206) $9,175 Income per common share: Continuing operations 17 cents 43 cents Discontinued operations --- (6 cents) Gain on disposal of discontinued operations (35 cents) --- Net income per common share (18 cents) 37 cents Average number of shares outstanding (000s) 18,188 24,518 12 months ended Sept. 30 1991 1990 Net sales and other operating revenues $1,482,089 $1,547,910 Income before income taxes 62,362 63,983 Provision for U.S. and foreign income taxes (31,054) (31,726) Equity in net income of affiliated companies 8,517 9,618 Income from continuing operations 39,825 41,875 Income from discontinued operations 9,492 29,155(a) Gain on disposal of discontinued operations 77,943 --- Net income 127,260 71,030 Preferred dividends (3,775) (3,826) Income applicable to primary common shares $123,485 $67,204 Income per common share: Continuing operations $1.69 $1.55 Discontinued operations 45 cents 1.18 Gain on disposal of discontinued operations 3.66 --- Net income per common share $5.80 $2.73 Average number of shares outstanding (000s) 21,278 24,581 ---- (a) Includes $22 million gain net of tax from intitial public offering of 18 percent of the common stock of Cabot Oil & Gas Corporation, formerly a subsidiary of the company. -0- 11/5/91 /CONTACT: J. Scott Esler, director of Investor Relations of Cabot Corp., 617-342-6240/ (CBT) CO: Cabot Corporation ST: Massachusetts IN: CHM SU: ERN SH-KM -- NE015 -- 0794 11/04/91 14:04 EST
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|Date:||Nov 4, 1991|
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