EARNINGS TELECONFERENCE
THIRD QUARTER ‐ FISCAL 2021
1
FORWARD LOOKING STATEMENTS
This presentation contains forward‐looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including with respect to our expectations for demand for our products, the factors that will impact our results in the fourth quarter of fiscal 2021, our expectations for adjusted earnings per share for fiscal 2021, when we expect to recover the feedstock differentials that we expect to impact results in our Reinforcement Materials segment in the fourth quarter of fiscal 2021, our expectations for capital expenditures and our operating tax rate for fiscal 2021, are forward‐looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward‐looking statements. Importantly, as we cannot predict the duration or scope of the COVID‐19 pandemic, the negative impact to our results cannot be estimated with certainty. Factors that will influence the impact on our business and operations include the duration and extent of the pandemic, the virulence and spread of different strains of the virus and the level and timing of vaccine distribution around the world and their impact on the economic recovery and growth, the degree of disruption in our supply chain from global logistics matters resulting from the COVID‐19 pandemic, and the general economic consequences of the pandemic. Further, the COVID‐19 pandemic has also contributed to increased costs and decreased availability of labor and materials for construction projects, and these factors may increase the costs of our capital improvement projects and delay our completion of such projects. Other important factors that could cause our results to differ materially from those expressed or implied in the forward‐looking statements include, but are not limited to, competition from other specialty chemical companies; volatility in the price of energy and raw materials; a significant adverse change in a customer relationship; safety, health and environmental requirements; unanticipated delays in site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations or global health matters; and fluctuations in foreign currency exchange and interest rates. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission ("SEC"), particularly under the heading "Risk Factors" in our annual report on Form 10‐K for our fiscal year ended September 30, 2020 and subsequent SEC filings, filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward‐looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
CABOT CORPORATION | 2 |
Q3 2021 OVERVIEW
- Adjusted EPS(1) of $1.35 compared to a loss of ($0.07) in the third fiscal quarter of 2020; Diluted EPS of $1.48 compared to a loss of ($0.12)
- Exceptional operating results for the third consecutive quarter in the fiscal year
- Robust demand across our diverse set of applications and geographies
- Continued momentum in our energy materials business with new adoptions by leading lithium‐ion battery customers
- Operating cash flow of $71M; liquidity of $1.3B; $1B ESG‐linked Corporate Credit facility renewed for five years with attractive terms
1. Non‐GAAP measure - See Appendix
(in $ millions) | Q3 2021 | Q3 2020 | ||
Total Segment EBIT1 | $ | 145 | $ | 18 |
Adjusted EBITDA1 | $ | 170 | $ | 46 |
Dividends | $ | 20 | $ | 20 |
Operating Cash Flow | $ | 71 | $ | 149 |
CABOT CORPORATION | 3 |
REINFORCEMENT MATERIALS SEGMENT OPERATING PERFORMANCE
Q3 2021 RESULTS
- Global volumes up 71% year‐over‐ year; regional volume increases led by the Americas up 146% and Europe up 100%
- Margins improved year‐over‐year driven by favorable Asia pricing
SEGMENT EBIT AND EBITDA ($ MILLIONS)
$85 | $102 |
$12 | |
$(5) | |
Segment EBIT | Segment EBITDA |
Q3 2020 | Q3 2021 |
SEGMENT EBIT AND EBITDA MARGINS
18% | 21% |
‐% | 6% |
EBIT Margin | EBITDA Margin |
Q3 2020 | Q3 2021 |
Q4 2021 OUTLOOK
- Strong volumes expected to continue
- Higher sequential spending expected due to timing of plant maintenance
- Plant outage expected to unfavorably impact the fourth quarter
- Higher feedstock differentials sequentially; expected to be recovered in Q1 2022
CABOT CORPORATION | 4 |
PERFORMANCE CHEMICALS SEGMENT OPERATING PERFORMANCE
Q3 2021 RESULTS
- Volume increases of 17% in Performance Additives and 20% in Formulated Solutions businesses
- Improved product mix driven by higher demand in automotive applications and targeted growth initiatives
SEGMENT EBIT AND EBITDA ($ MILLIONS)
$72 | ||
$54 | ||
$36 | ||
$21 | ||
Segment EBIT | Segment EBITDA | |
Q3 | 2020 | Q3 2021 |
SEGMENT EBIT AND EBITDA MARGINS
24%
18%16%
10%
Q4 2021 OUTLOOK
- Strong volumes expected to continue, but with some lower seasonal demand
- Higher sequential spending expected due to timing of plant maintenance
- Plant outages expected to unfavorably impact the fourth quarter
- Continued momentum in battery applications
EBIT Margin | EBITDA Margin |
Q3 2020 | Q3 2021 |
CABOT CORPORATION | 5 |
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Cabot Corporation published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 17:46:07 UTC.