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Fourth Quarter Net EPS, Before One-Time Adjustments $0.77 vs. $0.34
 Year-End Net EPS, Before one-time Adjustments, $3.00 vs. $3.18
 BOSTON, Oct. 29 /PRNewswire/ --Cabot Corporation (NYSE: CBT) today reported net income of $11.3 million, or 41 cents per common share, for the year ended Sept. 30, 1993. Included in net income was a $47.7 million, or $1.66 per share, restructuring charge; a favorable energy reserve adjustment of $14.2 million, or 46 cents per share; and a net $26.1 million after-tax, or $1.39 per share, charge for required accounting changes. Without these one-time adjustments, net income for the fiscal year would have been $59.8 million, or $3.00 per primary common share, which compares with $62.2 million, $3.18 per primary common share for the 1992 fiscal year. Net sales rose 3.7 percent to $1,614.3 million from $1,557.0 million last year.
 Cabot Chairman Samuel W. Bodman said, "We are pleased with Cabot's performance for the fiscal year. Most o?ur North American businesses showed strong improvement in volume and margins; however, weak product demand in Europe significantly reduced profitability. We are implementing several programs to reduce our European capacity and cost structure to sustainable levels. Business gains in North and South America nearly offset the drag of the European recession and cost control throughout the company has been good. We benefited in fiscal 1993 from an improved tax rate, the effects of which were partially offset by a negative foreign exchange effect."
 For its fourth quarter ended Sept. 30, 1993, Cabot reported a net loss of $6.9 million, or 41 cents per common share, which included a net- after-tax effect of $22.3 million for the one-time adjustments. Excluding the one-time adjustments, fourth quarter net income was $15.4 million, or 77 cents per primary common share -- more than double reported net income of $7.1 million, or 34 cents per primary common share, in the same quarter a year ago. Included in the 1993 quarter was an insurance settlement of $4.5 million, or 14 cents per common share; the year-ago quarter included a gain of $3.6 million, or 10 cents per common share, associated with an environmental clean-up. Net sales for the quarter were $391.9 million vs. $383.3 million in the year-ago quarter.
 For the quarter ended Sept. 30, 1993, Cabot's total operating profit of $38.9 million, before the restructuring charge, was significantly higher than the operating profit of $28.0 million recorded in the year- ago quarter. Reflecting stronger performance in most North American business segments, operating profit in the company's Specialty Chemicals and Materials Group was $36.4 million, compared to $28.9 million in the year-ago quarter. Cabot's Energy Group reported a modest profit of $2.5 million vs. a loss of $0.9 million largely due to higher LNG volumes in stronger gas markets.
 The fourth quarter restructuring charge of $47.4 million, or $1.66 per primary common share, is to cover costs associated with Cabot's intention to reduce capacity in Western Europe. The company said it will permanently close approximately 50,000 metric tons of carbon black capacity and is mothballing additional specialty chemical capacity as well. The changes, which will be carried out over a period of a year, reflect Cabot's view of how to fulfill the long-term needs of Western European markets in the most efficient manner.
 The company adopted FAS 106 and FAS 109 accounting adjustment requirements for the fiscal year just ended, the cumulative effects of which have caused a restatement of the company's results for the 1993 first fiscal quarter. The after-tax costs of adopting FAS 106, which is to cover the non-cash recognition of the estimated liability for postretirement benefits other than pensions, is $43.2 million. The favorable adjustment associated with the adoption of FAS 109, Accounting for Income Taxes, is $17.1 million. The net charge for these accounting change adoptions is $26.1 million after-tax, or $1.39 per primary common share.
 Based on a review of remaining liabilities associated with former oil and gas operations, the company determined that a $14.2 million reduction in reserves, or 46 cents per common share, was warranted and therefore recognized this amount as income.
 Bodman said in summary, "While several one-time adjustments have obscured Cabot's bottom line performance this year, we continue to be encouraged by the underlying trends in our core operations. Fiscal 1993 was a mixed year in two fundamental ways: in the geographic contrast between North American and European performance, and in the stark contrast between a sluggish first half and a rebounding second. We are encouraged by the operating performance of our businesses and believe we are well positioned to implement our dual strategy of driving costs down and developing new, differentiated products for our customers. We remain committed to creating shareholder value with or without help from external factors."
 Cabot Corporation is a Boston-based, Fortune 300 company with operations in specialty chemicals and materials, and energy.
 Dollars in millions, except per share amounts
 Periods ended Sept. 30 Three Months Twelve Months
 1993 1992 1993 1992
 Specialty chemicals and
 materials $288.0 $308.2 $1,191.8 $1,181.0
 Energy 103.9 75.1 422.5 376.0
 Net sales $391.9 $383.3 $1,614.3 $1,557.0
 Operating Profit (Loss):
 Specialty chemicals and
 materials $(11.0) $28.9 $101.7 $155.0
 Energy 2.5 (0.9) 16.7 18.2
 Total operating profit $(8.5) $28.0 $118.4 $173.2
 Gain on resolution of
 matters from divested
 energy businesses 14.2 0.0 14.2 0.0
 Income from continuing
 operations before
 income taxes (8.2) 10.0 67.9 116.6
 Provision for income taxes 0.4 (4.4) (30.7) (54.6)
 Equity in net income
 of affiliated companies 0.9 1.5 0.2 0.2
 Net income (loss)
 before the cumulative
 effect of accounting
 changes (6.9) 7.1 37.4 62.2
 Cumulative effect
 of accounting changes,
 net of tax 0.0 0.0 (26.1) 0.0
 Net income (loss) (6.9) 7.1 11.3 62.2
 Dividends on preferred
 stock (0.9) (0.9) (3.6) (3.7)
 Income (loss) applicable
 to primary common shares $(7.8) $6.2 $7.7 $58.5
 Income (loss) per common
 Primary (41 cents) 34 cents 41 cents $3.18
 Fully diluted (41 cents) 32 cents 41 cents $2.97
 Average number of shares
 Primary 18,920 18,560 18,719 18,401
 Fully diluted 18,967 20,137 18,822 20,072
 (Dollars in thousands)
 Sept. 30, 1993 Sept. 30, 1992
 Current assets:
 Cash and cash equivalents $40,267 $30,656
 Accounts and notes
 receivable 258,057 265,530
 Inventories 195,350 226,199
 Prepaid expenses 8,771 17,311
 Deferred income taxes 41,761 15,076
 Total current assets 544,206 554,772
 Current liabilities:
 Notes payable to banks 1,501 74,500
 Current portion of long-term
 debt 29,205 9,684
 Accounts payable and accrued
 liabilities 297,201 276,435
 U.S. and foreign income taxes 25,029 ---
 Deferred income taxes 1,285 ---
 Total current liabilities 354,221 360,619
 Working capital 189,985 194,153
 Property, plant and
 equipment, at cost 1,250,228 1,274,656
 Accumulated depreciation,
 and amortization (603,708) (571,440)
 Net property, plant and
 equipment 646,250 703,216
 Investments 174,580 156,540
 Intangible assets, net of
 amortization 78,873 87,396
 Other assets 39,542 52,605
 Deferred income taxes, net (80,592) (119,917)
 Other deferred liabilities (147,360) (91,400)
 Total $901,548 $982,593
 Long-term debt $459,275 $479,882
 Minority interest --- 9,756
 Stockholders' equity 442,273 492,955
 Total capitalization $901,548 $982,593
 -0- 10/29/93
 /CONTACT: Kathryn I. Davis, director investor relations of Cabot Corporation, 617-342-6366/

CO: Cabot Corporation ST: Massachusetts IN: CHM ENG SU: ERN

JL-DD -- NE004 -- 8371 10/29/93 09:23 EDT
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Publication:PR Newswire
Date:Oct 29, 1993

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