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Cabot net income $80 million in Q1

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Staff writer ▼ | January 31, 2014
Cabot Corporation announced results for its first quarter of fiscal year 2014. For the first quarter of fiscal 2014, net income attributable to Cabot Corporation was $80 million ($1.23 per diluted common share).
CabotCabot Corporation announced results for its first quarter of fiscal year 2014. For the first quarter of fiscal 2014, net income attributable to Cabot Corporation was $80 million ($1.23 per diluted common share).


Net income includes a per share benefit of $0.37 from certain items, principally related to a gain recognized on our existing investment in our Mexican joint venture as a result of the acquisition. Adjusted EPS for the first quarter of fiscal 2014 was $0.86 per share.

First quarter fiscal 2014 EBIT in Reinforcement Materials increased by $14 million compared to the same quarter of fiscal 2013 due to 15% higher volumes from improved demand in all regions and the addition of new capacity in China and Mexico.

Higher costs associated with the new capacity and lower pricing in Asia and Europe were offset by raw material purchasing savings and one-time benefits that lowered fixed costs in the quarter. Sequentially, EBIT increased by $17 million due to 7% higher volumes, improved margins from raw material purchasing savings, and one-time benefits that lowered fixed costs in the quarter.

First quarter fiscal 2014 EBIT in Performance Materials increased by $7 million compared to the first quarter of fiscal 2013. Volumes in Specialty Carbons and Compounds increased 16% and volumes in Fumed Metal Oxides increased 5%. Sequentially, Performance Materials EBIT increased by $1 million. Volumes decreased 8% sequentially in both Specialty Carbons and Compounds and Fumed Metal Oxides due to normal seasonal patterns.

Advanced Technologies EBIT increased by $17 million from the first quarter of fiscal 2013. The EBIT increase was driven by higher rental activity in Specialty Fluids, and higher royalties and a $4 million technology milestone payment in Elastomer Composites.

For the first quarter of fiscal 2014, Purification Solutions EBIT decreased by $14 million compared to the same quarter of fiscal 2013.

The company ended the first quarter of fiscal 2014 with a cash balance of $105 million, an increase of $10 million from the fourth quarter of fiscal 2013. During the first quarter of fiscal 2014, the company generated adjusted EBITDA of $150 million.

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