Cabot Stock Price, News & Analysis

Cabot Corporation (NYSE: CBT) has signed an agreement to sell its Purification Solutions business to One Equity Partners for approximately $111 million, subject to adjustments. This segment generated $257 million in revenue in fiscal 2021. The deal, expected to close in the second fiscal quarter of 2022, will lead to a pre-tax impairment charge between $155 million and $165 million. The net cash proceeds are anticipated to be around $80 million. Despite this, Cabot's adjusted EPS outlook for fiscal 2022 remains unchanged at $5.20-$5.60.

Cabot Corporation (NYSE: CBT) has announced its definitive agreement to acquire Tokai Carbon (Tianjin) Co., Ltd. for $9 million, aimed at bolstering its Battery Materials product line. The acquisition will allow Cabot to leverage Tokai's existing facility in Tianjin, which produces up to 50,000 metric tons of carbon black annually. This move is strategically aligned with the growing demand for lithium-ion batteries, enhancing production capabilities for advanced battery-grade materials.

On November 12, 2021, Cabot Corporation (NYSE: CBT) announced a quarterly dividend of $0.37 per share, marking a 6% increase from the previous dividend. This dividend will be payable on December 10, 2021, to stockholders of record by the close of business on November 26, 2021. The annualized dividend rate now stands at $1.48 per share, an increase from $1.40. Cabot's consistent dividend payments for over 50 years underscore its commitment to providing shareholder value.

Cabot Corporation (NYSE: CBT) reported a strong fiscal 2021, achieving a GAAP EPS of $4.34 and record Adjusted EPS of $5.02. Key drivers included Reinforcement Materials EBIT of $329 million and Performance Chemicals EBIT of $211 million. Fourth quarter results showed net sales of $904 million, a significant increase from $659 million YoY. The company experienced solid growth in all segments, notably doubling Battery Materials revenue. Liquidity remains robust at $1.3 billion, with a Net Debt to EBITDA ratio declining to 1.6 times. Looking ahead, Cabot anticipates strong end-market demand and adjusted EPS of $5.20 to $5.60 for fiscal 2022.

Cabot Corporation (NYSE: CBT) has launched the VULCAN^® 3-LP carbon black, enhancing its Cabot LP carbon black series for rubber applications. This low polycyclic aromatic hydrocarbon (PAH) product meets stringent regulatory standards, making it suitable for consumer rubber goods and food contact items. The VULCAN 3-LP carbon black is designed for increased strength and resistance in rubber products, showcasing Cabot's commitment to innovation and regulatory compliance. This addition provides clients with flexible options that adhere to evolving safety standards.

Cognizant (Nasdaq: CTSH) has partnered with Cabot Corporation (NYSE: CBT) to revamp Cabot's digital operating model. This collaboration will see Cognizant providing managed services in Application Development, Maintenance, and Infrastructure. The initiative aims to enhance Cabot's efficiency and drive its digital strategy, utilizing technologies such as AI, automation, and cloud services. Cabot’s Vice President emphasized Cognizant's strong reputation and capability in delivering transformational programs, which are essential for achieving their strategic growth goals.

Cabot Corporation (NYSE: CBT) will release its fourth quarter operating results for fiscal 2021 on November 8, 2021, post market hours. A conference call and live webcast will occur on November 9, 2021, at 8:00 am ET to discuss the results. The call will be available on Cabot's website, with an archived presentation for those unable to attend live. Cabot is a global leader in specialty chemicals, providing products such as rubber, specialty carbons, and activated carbon.

Cabot Corporation (NYSE: CBT) will host an Investor Day on December 2, 2021, at 9:30 a.m. ET in Boston, Massachusetts, where CEO Sean D. Keohane and the executive team will discuss core business drivers and strategic initiatives, focusing on sustainability, innovation, and capital allocation.

The event will be held at the Intercontinental Hotel and available virtually. Registration details will be shared later. A live webcast will include video and Q&A sessions, with an archived version available post-event.