Printer Friendly

CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS

 BOSTON, Jan. 29 /PRNewswire/ -- Cabot Corporation (NYSE: CBT) today reported net income of $11.9 million (59 cents per primary common share and 56 cents per fully diluted common share) for its first quarter ended Dec. 31, 1992, compared with income of $16.6 million (86 cents per primary common share and 81 cents per fully diluted common share) in the same quarter a year ago. Net sales were $396.1 million vs. $384.8 million last year.
 Cabot Chairman Samuel W. Bodman said, "We are not satisfied with the financial results of the quarter. They reflect weak performance in most of our European operations." Bodman noted that one-third of Cabot's revenues were generated in Europe in fiscal year 1992.
 Notwithstanding the weak economic conditions in Europe, the carbon black business showed some improvement on a world-wide basis vs. the year-ago quarter as volumes continued strong in North America. The results in the company's joint venture in Mexico compared favorably with the same period last year, as progress has been made on the recovery plan.
 Included in the quarter was a $1.7 million after-tax gain (9 cents per primary common share) from the sale of various small company investments. This compares with two non-operating investment gains totalling $3.2 million after tax (18 cents per common share) in the same period a year ago.
 Cabot's total operating profit for the quarter was $35.9 million compared to $42.7 million for the year-ago quarter. Operating profit in the company's Specialty Chemicals and Material's Group was $29.7 million compared to $35.1 million one year ago, reflecting the weakness in Europe and lower sales in the company's safety products business. First quarter operating profit in Cabot's Energy Group fell 18 percent to $6.2 million due principally to lower volumes in the company's LNG business.
 In addition to continued weakness in European markets, Bodman noted a significant change in the near term performance outlook for the LNG business: "The combination of a new source of supply entering the market coupled with industry deregulation is adversely affecting the current year's profitability more than anticipated last fall." Contracted sales volumes are lower owing to the new supply from the Iroquois pipeline and warmer than normal weather in January is exacerbating the effect of these developments.
 Bodman stated that while these factors will impact March quarter profitability by approximately $6 million after-tax vs. last year, he remained optimistic about the longer term future of the LNG business, and the other Cabot businesses as well, "We are forecasting gradual improvement in our specialty chemical operations during the balance of the year, albeit not sufficient to match last year's earnings of $3.18 per share." Bodman expressed confidence that the cost control, safety and customer partnering strategies in place across the company's global operations would help to offset the current external challenges.
 Cabot Corporation is a Boston-based, Fortune 300 Company with operations in specialty chemicals and materials, and energy.
 CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES
 Summary Results of Operations
 (Dollars in millions, except per share amounts)
 (unaudited)
 1992 1991
 Sales:
 Specialty chemical and materials $288.2 $271.8
 Energy 107.9 113.0
 Net sales $396.1 $384.8
 Operating Profit:
 Specialty chemicals and materials $29.7 $35.1
 Energy 6.2 7.6
 Total operating profit $35.9 $42.7
 Income Applicable to Primary Common Shares:
 Interest expense $(11.0) $(8.5)
 General corporate expenses (2.6) (0.4)
 Income before income taxes 22.3 33.8
 Provision for income taxes (9.1) (15.9)
 Equity in net loss of affiliated
 companies (1.3) (1.3)
 Net income 11.9 16.6
 Dividends on preferred stock (0.9) (0.9)
 Income applicable to primary
 common shares $11.0 $15.7
 Income Per Common Share
 Primary 59 cents 86 cents
 Fully diluted 56 cents 81 cents
 Average Number of Shares Outstanding (000's)
 Primary 18,637 18,210
 Fully diluted 20,211 19,815
 Consolidated Financial Position
 (Dollars in thousands) 12/31/92 9/30/92
 (Unaudited)
 Current assets:
 Cash and cash equivalents $23,053 $30,656
 Accounts and notes receivable 256,370 265,530
 Inventories 230,402 226,199
 Prepaid expenses 16,512 17,311
 Deferred income taxes 15,253 15,076
 Total current assets 541,590 554,772
 Current liabilities:
 Notes payable to bank 83,746 74,500
 Current portion of
 long-term debt 9,740 9,684
 Accounts payable and
 accrued liabilities 251,176 276,435
 Total current
 liabilities 344,662 360,619
 Working capital 196,928 194,153
 Property, plant and equipment,
 at cost 1,212,830 1,274,656
 Accumulated depreciation and
 amortization (558,028) (571,440)
 Net property, plant and
 equipment 654,802 703,216
 Investments 159,689 156,540
 Intangible assets, net of
 amortization 84,909 87,396
 Other assets 49,275 52,605
 Deferred income taxes (116,411) (119,917)
 Other liabilities (83,818) (91,400)
 Total $945,374 $982,593
 Capitalization:
 Long-term debt $479,108 $479,882
 Minority interest 8,581 9,756
 Stockholders' equity 457,685 492,955
 Total capitalization $945,374 $982,593
 -0- 1/29/93
 /CONTACT: Kathryn I. Davis, director, investor relations of Cabot Corporation, 617-342-6366/
 (CBT)


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

TM -- NE003 -- 0663 01/29/93 10:10 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 29, 1993
Words:882
Previous Article:GTECH SIGNS AGREEMENT WITH GENERAL INSTRUMENT CORPORATION FOR PURCHASE OF AMTOTE INTERNATIONAL
Next Article:TERADYNE RELEASES FOURTH QUARTER RESULTS
Topics:


Related Articles
CABOT ANNOUNCES 1991 FISCAL YEAR OPERATING RESULTS
CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS
CABOT ANNOUNCES THIRD QUARTER OPERATING RESULTS
CABOT ANNOUNCES 1992 FISCAL YEAR OPERATING RESULTS: EPS FROM CONTINUING OPERATIONS UP 88 PERCENT TO $3.18 PER SHARE
CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS
CABOT ANNOUNCES SECOND QUARTER RESULTS
CABOT ANNOUNCES FIRST QUARTER RESULTS; EARNINGS DOUBLE
CABOT ANNOUNCES RECORD FIRST QUARTER OPERATING RESULTS
Cabot to Recognize Gain on Sale of Securities, Two Charges During Third Quarter
Cabot Announces First Quarter Operating Results.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters