Cabot Corp (CBT) has reported 30 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $52 million, or $0.83 a share in the quarter, compared with $40 million, or $0.63 a share for the same period last year. Revenue during the quarter dropped 7.75 percent to $619 million from $671 million in the previous year period. Gross margin for the quarter expanded 659 basis points over the previous year period to 27.30 percent. Total expenses were 87.40 percent of quarterly revenues, down from 91.21 percent for the same period last year. This has led to an improvement of 381 basis points in operating margin to 12.60 percent.
Operating income for the quarter was $78 million, compared with $59 million in the previous year period.
Commenting on the results, Cabot president and chief executive officer Sean Keohane, said, "I am pleased to report another strong quarter which was driven primarily by strong margins and cost management. The Performance Chemicals and Reinforcement Materials segments each delivered positive results compared to the same quarter in the prior year. In addition, we experienced significant volume growth in Purification Solutions attributable to the full implementation of the MATS regulations. Our strong finish to fiscal year 2016 resulted in 16% adjusted EPS growth year over year including the Performance Chemicals segment delivering a third consecutive year of record EBIT. In addition, we maintained strong discipline around our capital allocation framework, returning over $100 million to shareholders in the form of dividends and share repurchases during the fiscal year."
Operating cash flow declines
Cabot Corp has generated cash of $386 million from operating activities during the year, down 22.65 percent or $113 million, when compared with the last year. The company has spent $98 million cash to meet investing activities during the year as against cash outgo of $162 million in the last year.
The company has spent $184 million cash to carry out financing activities during the year as against cash outgo of $256 million in the last year period.
Cash and cash equivalents stood at $200 million as on Sep. 30, 2016, up 159.74 percent or $123 million from $77 million on Sep. 30, 2015.
Working capital increases
Cabot Corp has recorded an increase in the working capital over the last year. It stood at $695 million as at Sep. 30, 2016, up 14.50 percent or $88 million from $607 million on Sep. 30, 2015. Current ratio was at 2.65 as on Sep. 30, 2016, up from 2.38 on Sep. 30, 2015.
Debt comes down
Cabot Corp has recorded a decline in total debt over the last one year. It stood at $926 million as on Sep. 30, 2016, down 6.75 percent or $67 million from $993 million on Sep. 30, 2015. Total debt was 29.32 percent of total assets as on Sep. 30, 2016, compared with 32.29 percent on Sep. 30, 2015. Debt to equity ratio was at 0.67 as on Sep. 30, 2016, down from 0.74 as on Sep. 30, 2015. Interest coverage ratio improved to 5.57 for the quarter from 4.54 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
