30 January 2013 22:20 [Source: ICIS news]
HOUSTON (ICIS)--Cabot posted a 56.5% year-over-year decrease in first-quarter net profit because of increased expenses, the US-based company said on Wednesday.
Net profit for the first quarter, which ended on 31 December, was $20m (€15m), down 56.5% from $46m in the same period a year earlier. Net sales increased to $820m in the first quarter of 2013, up 7.6% from $762m in the first quarter of 2012. Q1 2013 gross profit was $147m, up 2.8% from Q1 2012’s $143m.
But while net sales and gross profit rose, increases in expenses ate into the overall net income. Jumps in expenses attributed to sales, administration, research, technical matters, interest and provision for income taxes led to the drop in net income.
Cabot CEO Patrick Prevost said the company was pleased with an increase in the adjusted earnings per share, which rose 4.8% to 66 cents from 63 cents year over year, “despite the challenging macroeconomic environment”.
Cabot ended the first quarter of 2013 with a cash balance of $91m, a decrease of $29m from the fourth quarter of 2012. The decrease was driven by capital expenditures of $62m and an increase in net working capital, the company said.
Cabot is a global specialty chemicals and performance materials company. Among its products are rubber and specialty-grade carbon black, activated carbons, inkjet colorants and elastomer composites.
($1 = €0.74)
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