Cabot Corporation (CBT) has reported 54.17 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $74 million, or $1.18 a share in the quarter, compared with $48 million, or $0.76 a share for the same period last year. On an adjusted basis, earnings per share were at $0.87 for the quarter compared with $0.70 in the same period last year.
Revenue during the quarter grew 19.37 percent to $678 million from $568 million in the previous year period. Gross margin for the quarter contracted 148 basis points over the previous year period to 24.93 percent. Total expenses were 86.73 percent of quarterly revenues, up from 86.44 percent for the same period last year. That has resulted in a contraction of 28 basis points in operating margin to 13.27 percent.
Operating income for the quarter was $90 million, compared with $77 million in the previous year period.
Cabot president and chief executive officer 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. Strong MATS volumes drove an improvement in Purification Solutions EBIT and Specialty Fluids saw higher volumes in the quarter."
Operating cash flow drops significantly
Cabot Corp has generated cash of $51 million from operating activities during the first half, down 72.87 percent or $137 million, when compared with the last year period.
The company has spent $47 million cash to meet investing activities during the first six months as against cash outgo of $41 million in the last year period.
The company has spent $35 million cash to carry out financing activities during the first six months as against cash outgo of $61 million in the last year period.
Cash and cash equivalents stood at $133 million as on Mar. 31, 2017, down 25.28 percent or $45 million from $178 million on Mar. 31, 2016.
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