The following is a summary of the Cabot Corporation (CBT) Q2 2024 Earnings Call Transcript:
Financial Performance:
Cabot Corporation reported Q2 adjusted earnings per share of $1.78, up 34% year-over-year, driven by predominant growth in both segments.
Operating cash flow remained strong in the quarter at $176 million.
Reinforcement Materials segment delivered commendable results, with EBIT up 22% year-over-year to $149 million.
Performance Chemicals segment's EBIT increased by 11% compared to Q2 of fiscal 2023.
$47 million was returned to shareholders through a combination of share repurchases and dividends.
An 8% increase in the quarterly dividend was announced, ensuring their history of growing dividends.
Business Progress:
Cabot Corporation plans to accelerate investment in high return growth projects with an expectation of strong cash flow.
PROPEL E8, a new engineered reinforcing carbon black designed specifically for electric vehicles was launched.
A $5 million grant was awarded by the U.S. Department of Energy to aid the development of fuel cells.
With an outlook of stronger volumes in the second half of the year due to improvements in infrastructure, Cabot is optimistic about its progress.
Innovations are underway focusing on stronger environmental measures including the development of a carbon catalyst for fuel cell applications.
The imminent positive impact from Infrastructure and CHIPS Acts in the U.S. could drive demand for Cabot's products offerings in the long term.
More details: Cabot IR
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