Q3 2024 Cabot Corp Earnings Call Transcript
Key Points
- Adjusted earnings per share increased by 35% to $1.92 compared to the same period in fiscal 2023.
- Reinforcement Materials segment achieved its second-best quarter in history with EBIT growing 3% year-over-year to $136 million.
- Performance Chemicals segment saw a 72% year-over-year increase in EBIT driven by strong volume growth and a return to a more normalized product mix.
- Strong cash flow generation with operating cash flow of $207 million and $73 million returned to shareholders through share repurchases and dividends.
- Cabot Corp (CBT) earned the top rating of platinum from EcoVadis for the fourth consecutive year, reflecting its leadership in sustainability.
- Weather-related events in Mexico and Brazil negatively impacted volumes in the Reinforcement Materials segment.
- Less favorable regional mix affected the overall performance despite strong segment results.
- The Performance Chemicals segment, while showing strong recovery, is still impacted by normal seasonality and potential future destocking effects.
- The economic environment in China remains uncertain, with a slower growth rate and weak investment confidence affecting overall demand.
- The building and construction market, a key end market for fumed silica, remains stable but has not shown significant improvement.
Good day. Thank you for standing by. Welcome to Cabot's third quarter 2024 earnings conference call.(operator instructions) Please note that today's conference is being recorded.
I will now hand the conference over to your speaker host Steve Delahunt, Vice President, Treasure and Investor Relations. Please go ahead.
Thanks, Olivia, and good morning. I'd like to welcome you to the Cabot Corporation earnings teleconference. With me today are Sean Keohane, CEO and President; and Erica McLaughlin, Executive Vice President and CFO.
Last night, we released results for our third quarter of fiscal year 2024, copies of which are posted in the Investor Relations section of our website. The slide deck that accompanies this call is also available on the Investor Relations portion of our website and will be available in conjunction with the replay of the call.
During this conference call, we will make forward-looking statements about our expected future operational and financial performance. Each
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