Cabot (CBT) 9 Nov 212021 Q4 Earnings call transcript

Hello. And welcome to the Q4 2021 Cabot Earnings Conference Call. All lines have been place on mute to prevent any background noise. After the speaker's remark, there will be a question-and-answer session. [Operator Instructions] Thank you. to call like to now would turn over the Mr. I Delahunt. Steve ahead, Please go sir.

is morning. to results are would the Lisa. Last are year of that McLaughlin, I Thanks, be of Good and the President like fourth and and earnings CFO. which website quarter posted With available call our accompanies call. The Copies Investor Senior fiscal our section of Vice in CEO replay Investor XXXX. Relations we Cabot available the teleconference. welcome our deck me website. Keohane, today released slide this Sean night, President; of Erica with Relations for also on the Corporation the in to portion conjunction will you of and

make actual call, risks statements materially to operational statement conference expected future Each will cause financial to from is projected subject such this could our results we and that statements. about performance. forward-looking in differ those uncertainties forward-looking and During

these incentive Also, SEC, report you over awards release the be GAAP measures that last vesting website. several to are and press financial the are not annual to section remind release to XX, subsequent make Any weeks, non-GAAP transparency should each GAAP. selling to Additional in information will would shares to officers corporate adjustments last our night who involve this in issued GAAP financial restricted ended earnings referenced end rewards. the table the the Erica most will and measures to will to our Statements refer to over and for fiscal that our to directly measures measures issued full Sean, the connection under on call on results. alternative financial presented in to greater of other quarter program, website. the which measure year provide non-GAAP by non-GAAP call regarding filings the our their our factors Forward-looking order company we fourth be long-term operating stock we financial I reconciled of heading regarding the the company's certain year, and required issued the I discuss the Any as do equity and like now with financial an performance, pay considered In September with Investors and night review Form related we all business in comparable XX-K on available of XXXX, the under available turn at of typically we a financial in next appears year obligations of tax highlights. details. will be segment the

this, Sean? Sean will comments and to questions. Following open floor provide the closing

our needs. environment the $X.XX And of of commercial the to XXXX customers was face built made they of resulted record year earnings At accomplished a spend and commitment on And in and to of global I disruptions XXXX the our and in working. agility, win business like execution record time given Good and combination through Fiscal deliver recovered chain for customer's disciplines morning, flow and prepared. innovating that Thank protocols the our in Cabot and more team strength The and driving free is recapping evolving and time to these motivates resilience proud COVID per XXXX and support total This adjust segment to were evolve little XXXX XXXX about model of share extraordinary Serving excellence, challenging the work the outstanding that a our very now through them on and XXXX. is would to to how EBIT fiscal the year, foundations investments. results. Cabot operational this required I our cash our in from discretionary delivered a the talked team. call macro this myriad drove our of was We We gentlemen. tirelessly I'm in as cash COVID adjusted think I year. differentiated as ladies our year and necessary safety evidence ways is growth that recovery continue hold, accomplishments supply we to today. million. results The $XXX grow and of record a $XXX what companies you, operating focus Steve. fact last to our with welcome lows normal Cabot million. being remarkable prepared the of takes

rising Additionally, sharply experienced costs, required which companies management. dynamic input commercial

execution grown of long-term built the our annual with core prospects hallmarks work marked our of to segment in support this teams remained rate XX% growth of our target. pleased our our and the manage a per closely successful pricing execution company. Our to the very ensure since margins the strategy, Advancing approach. at and our environment, X% and to supply disciplined with around and XX% year for Fiscal and efforts A strategy, needs. sixth customer's were been growth earnings the of of am have compound through our record customers of ahead inception XXXX Adjusted Core our growth our we could to we our focus year invest share our I robust, has

we and are of with even I the As in results more am progress XXXX, we excited since opportunities XXXX. growth pleased about in the front as lie made the us that

strength built where from is we highlights A a a and investing have particularly on what are call few of philosophy noteworthy. to right of win. positions from we XXXX strategy growth Our

in year-over-year. additives portfolio unmatched revenue business a and strong Our resulted our doubling our of of Materials customer-focused in conductive model Battery carbon

capacity broad specialty Materials. Battery China. carbon range We our will additional will are our across applications to the investment specialty Suzhou, support conversion of growth carbons progressing with and this in of plants up free And provide

business we qualifications OEM capitalize to for is the inkjet in these from set we as build digital project this penetrate Indonesia, commercial XXXX the on that which and multiple well well finally, segments in markets. allow packaging achieved to growth to shift positioned growth region. presses us printing. inkjet up customer Cilegon, demand high of analog to execution specialty a will Our in meet a black production in us continued In line compounds masterbatch for And the

have While been XXXX, the with core. growth sustainability and these are highlights accomplishments execution achieved at from

sustainability noteworthy accomplishments. XXXX several We in continued our journey with

the work the and guidelines. and risks us First results foremost, committed a party to of months. recommendations Task for Climate-related Financial to help climate coming engaged we opportunities our We intend following disclosures the third or the of with TCFD, in and evaluate Force align the this we to Disclosure, share TCFD

While was XXXX rhythm very the challenging, I'm safety. proud operating performance employee of of our in

X.XX the and recordable upper chemical echelon keeps incident companies. of us of total rate firmly industrial in Our

the control in that This sulfur We carbon investment improved a long over control customer's ensure a air the major black in will air our our also dioxide result term. completed can quality located nitrogen technology project sustainable through in in emissions, emissions at needs will substantial we Louisiana. oxide supply fashion and support and of manufacturing facility elimination

careers and chemical Cabot chemistry. pathways an the colleges of emissions. is initiative industry. In this was candidates to aim, a our students US STEM in that the performance lasting density within up one agreements [ph] future our This is historically very well-rounded as we Initiative, billion and new well based next transaction addition, an for to and enter at sponsor. chemical a transformational In performance dioxide The pricing XX part credit and of strategic need we to Scholars and support in terms power our targets of we revolving our reinforces recovered has In attract on company's financial or of for lastly, used our credit impact annual focuses team. on are megawatts which inaugural heat on $X commitment the proud diverse testament a sustainability to portfolio to a from a in support against field as into have And waste generation succeed being August, reduction generate creating industry. our the and taking sulfur any of performance that linked and sustainability chemical Overall, effort nitrogen FOSSI, is the objectives. ratings This the students STEM XXXX and facility progress industry, the the cogen without we and successful and positioning our had of black plant industry and as exceptional announced to talented will revolving industry, credit emissions. oxide is first additional universities of against the to be of to in creating

This year, share the pleased as am I timing above adjusted quarter. fourth fourth the level was due performance chain turnarounds. the on results per shortage report as supply maintenance of comments global despite to of $X.XX. quarter well spending earnings chip with few same the a a disruptions, Now quarter semiconductor and last ongoing to the solid higher XX% effects of of

strong Battery and flow $XX operations the of our million. at to detail. raw the $XX ended EBITDA We million also call the impact Erica? of the quarter Cash financial I'll million Materials was to discuss in continued the material the momentum with Erica in from results previously of of range year prices. more higher to in despite the turn over $XXX now quarter communicated

I Sean. Materials discussing segment. with will Reinforcement results start the Thanks, in

Higher up fiscal fourth costs with due to in also XXXX higher from the volumes prior the by Globally, quarter as recovery as in the $X maintenance. in impacted all of X% by in as XXXX. the compared in the of strong driven $XXX fourth and increase were principally COVID-related Americas, XXXX, the margins higher period the impacts During quarter quarter and Materials regions in Europe Asia. Higher higher due due for unit fiscal pricing, fourth demand same million, and associated increased were X% higher all the Reinforcement were strong by prior were to to million remain replacement the compared year quarter of were of higher full driven increases growth results robust. The year X% tire to the up fiscal to spot and volumes. X% volumes plant fourth full margins and in regions EBIT market same Asia. were particularly respectively, in periods The in volumes year. a The year by

sequential in EBIT remains Looking and modestly as for are fixed lower in with demand expected at expect fiscal of tire replacement as quarter we decrease a increase spend costs plant maintenance first sequentially increase the solid. to XXXX, from a volumes

customer volumes million compared to as the costs Additives year period Chemicals. primarily of quarter the experienced the $XX on by insurance Performance in Formulated X% but and particularly driven in the stronger silica increased fiscal was fiscal Year-over-year quarter full higher million by increased offset impacted to higher turning fiscal for maintenance our China. product in the and proceeds and conductive stronger and increased into $X due as from last the line, in largely fumed product quarter quarter's compounds Volumes discussed sales product in The our to XXXX. pricing. earlier fourth in XXXX, product related call. two these applications as a an decreased expected, and The $XX improved automotive fourth claim were carbons outages costs Now mix segment Performance to were carbon fourth lines. by during by improved in in same volumes planned mix, quarter, EBIT increase in by million due year-over-year specialty X% in fiscal to we Solutions. Pricing in

sequential of and to online expect plants we quarter Looking fiscal growth from anticipate and Materials impact increases product higher will the recoup of results impacted our the came quarter implemented rising can surcharges We round to a our announced volume latest one be in XXXX, growth ahead the in the fully costs line. Battery back of that first positive costs. as until input benefit first price temporarily

our EBIT year The sale driven by by fourth compared $X in supply increased of costs specialty fiscal to $X and the increases in the mine of EBIT applications. and the agreement, from the million fourth lower favorable Solutions. Purification the long-term in activated of quarter XXXX impact a and increased related to pricing XXXX from quarter fixed were carbon Texas million. full improved Moving

at I of quarter first we seasonally sequentially due EBIT higher turn and the to costs billion. decline ended $XXX planned quarter balance will due to position We items. to XXXX, to volumes strong ahead $X.X the maintenance activities. lower turnaround now fiscal remains million, Looking with approximately cash and a liquidity to our expect of corporate

XXXX, fiscal Capital additional fourth were flows $X $XX were of million. for during $XX from decrease XXXX expenditures million, uses of quarter million. for cash fourth capital million the included a $XXX operating cash which fiscal the During quarter the quarter activities of were of working dividends. fourth And

higher our on to in driven both million, the XXXX, capital growth growth accounts to spend increase for The including targeted and our we included $XXX also an higher receivable million from costs increase we the net The working pass capital costs working flow US pricing. driven our customers balances EPA in were and of increase related Capital of fiscal our the fiscal which During our raw partially year-over-year. by by year as material cash business in projects. inventory impact million. was $XXX XXXX of was balances generated operations, on $XXX expenditures compliance investments largely

the the of $XXX in capital growth second be on specialty the half capital online to increased is to fiscal to carbon, of estimate includes areas expenditures which million. XXXX. spend completing XXXX in related to and return This come US and capital expect planned growth of plant compliance new spending high The carbon upgrading between conversion confidence, includes high million produce black related continued $XXX China We projects portfolio. EPA-related our

expansions are we inkjet. unit addition, planned to have growth specialty related a in In in and executing capacity new on capital and Materials Battery compounds Indonesia

be the our for Additional year the included of fiscal XX%. rate over $XX we for turn Sean. of tax the now uses The XX% operating back will during to fiscal was XXXX tax range fiscal call to I year in operating XX%, and cash rate to million anticipate XXXX for dividends.

Erica. Thanks,

we growth excited As look about opportunities of XXXX, ahead to I'm the us. in front

couple to for a year. you of our take with priorities minutes upcoming me share Let the

to supply. Demand chain. security top agreements, First, are across flows we low as the we priority to remain which is supply outcome levels remains robust and local remain projected will XXXX customers. a be Inventories positive value premium tire be finalize about continues strong at our of all the in greater challenging, and customer transportation all global of the placing regions. are on And for

Materials, at Second, advance Battery strategic nanotube the company. a investments In we'll broad we of across Zhuhai, capacity to carbon growth to facility continue our plan China. portfolio in expand

tons carbons of Battery of to will free support XX,XXX Additionally, growth aforementioned Suzhou conversion carbons up the specialty capacity our across specialty plant network of Materials. provide will and metric our growth

of for high today production expect color XXXX, We on the feel cash investment delivering fiscal unit very of shaping XXXX. about enable out to finally, complete in outlook our flow, the Year year. our rating on and track and record strong calendar good out earnings pleased for region. we later I with And our our specialty which in Indonesia build grade execution we prepared New the year in you our we coming the compounds also new ASEAN this is priorities dividend. will some intend the our on XXXX, strong hope maintaining Clearly, build us growth by I'll industry-leading growth to up. position while gives close momentum how comments talking my are about by and to

Materials the segment step through fourth lines generally a expect as Based the Performance are with $X.XX Chemicals first year. $X.XX XXXX Reinforcement quarter, year line up with positive We quarter to earnings share lines. product based results growth the with accelerating to expect in our starting quarter XXXX Battery across the [ph] in market per results second in and The results to on improved on outcome product our Materials expected we all anticipate from the an in customer in the We agreements. be in range expected be above we this, move adjusted for fiscal of inkjet

investments, year-over-year are and side, share to remain they we about advantaged very to On front our high been where the end opportunistic are Overall, fundamentals dividends point growth The than offset growth time we during I'm growth. markets our from we strong in anticipate cash long-term be by fund as a growth, are working as flow where my flow excited capital used and company an free CEO. cash increase earnings opportunities Cash execute a robust, at support to partially repurchases. and we businesses of at us we have are of The continue better level. in have going. any strong, will

sheet, will set Looking our talented of ahead, on today, much of call portfolio and session. for grow a back have us balance question-and-answer businesses we a excellent for an position objectives strategic joining and strong now believe and turn we to us to you a a winning very Thank industry. formula, I which team, all growth continue lead in the over for our deliver and

Your line Instructions] Spector with [Operator of UBS. Josh the from question first comes

guys. wanted Hey, reinforcement. guess on first, just taking for I my Thanks question. I to ask

If you could at takes and puts as maybe go through you some XXXX. of look the

thinking higher some And earlier would of as think bucket specifically higher you and about I you benefit, benefit this Western the price some volumes called China also So oil. kind if pricing. next We then year. growth had those about you out year? How assume over higher

Good Hi, next and is morning. production first tire I grow Well, year. expected to Josh. think foremost, Sure.

And market very with again, long-term I remain that's here, so important. low in still Inventory to expect levels will And across very robust. and so robust whole the we be trends the think remains value line demand replacement seem chain.

I the say that's So would first point.

pretty our favorable on Where our demand Americas demand. strong the and customer we additions and and sit remain tire changed Supply how view again, agreements related Europe, fundamentals no out. right both settle online. is this. in now, to those Second And hasn't capacity

remain So pretty markets we should would tight. expect these

expect tire agreement. the as we from would a outcome a so result, And positive

of definitely you Oil energy cogen technology from where our And higher, moved benefits third up, as yield on facilities. point generally, and through our the on when know, the are earn course, is prices oil oil prices Now year. prices more we go. the investments

And so of if levels, then rate we at there'd change the elevated are. oil where prices be real sort from of exit no stay

how demand this So I think and two the optimistic to tire it the be and our why biggest movers would agreements segment. really down we're on comes customer those and year,

you of willing agreements those terms in earlier quantify to to assume any of XXXX? I guess versus tire I where won't come at out XXXX contribution view EBIT be

those. of in No, the we're process still

be when so we'll normally complete as And our do. then that, we we look on more sharing detail

could are you on China you I just seen supply guys on guess, - that any specifically, If I guys in any impact demand or measures? did material you seeing? any impact ask control any what Thanks. have from dual have you More broadly, guys Okay. region? direct have

power Yeah. The cause a as certainly lockdown-related environment policy and can about. the impacts, zero shortages that some China dynamic probably that has there impacted have And country. that is been pursuing the of parts have - certainly can country many COVID been you've read

situation supply the quarter navigated did in solid, disruptions. we not We volumes were and have last Our through any well. this

our and allowed us in held serve well customers quarter, to this margins steady. So the

factors yeah, So manage, some managing be those we seem to to I but certainly think well. quite

Thank Okay. you.

of Your next the line comes Barclays. question Leithead with from Mike

you're accelerate guess near-term kind 'XX how maybe or Great, I And of of the do thanks. expect phasing currently as how in little just more move EPS truly earnings the about I we how thinking talk very of those first, some you about a But disruptions cadence still through when year? just fast you guys. guide? the calendar. the it's fade? thinking are to early you the morning, appreciate bit Good can about Sean,

Sure.

in the QX beginning then level line expect largely we with So in that as we will commented, and QX. QX step-up a be

the you year that best to specific customer calendar Mike, few step-up actions. are about a from agreements, Certainly, tire I as know, basis. a think is the on way think

those So kick do. they as January always in will

expected So I the think that one important step-up. element of

XXXX. on value it's The to other with through general, for chains impacts there in semiconductor now, improve views consistent flowing is expected that while tire-related right chip shortage production, around we the are through as progress automotive

that's our on that And so one. view

So point. second that's a

quarter-over-quarter Battery Third our Materials to business. continuing we're is build momentum in

COX not the through gas Performance Right are price go we deal as Chemicals. finally, prices, remaining build the then in naturally costs and that but process And higher in material I higher so in to is and would oil natural with year. point implementing costs surcharges only Europe. rising we now, of say And increases

be QX run we to of we chasing prices expect so will of be and across first we now. And we're full But at And year. these enter the balance implemented of recovery right market be fiscal bit sort QX, a as the as the rate through in out it the in little might quarter.

business. spot a in You're tends It be familiar with approach more business. to our this of

long we that. to and get the continue So have demonstrated do go But time, we've including to to ability over a out very an increases. XXXX, and that of we'd price period expect

would So be for the then QX. account through we as factors, into from those would biggest the QX the transition step-up Mike, say, that I QX

helpful, now of Investor the appreciate then the Day. into three And this the to high month. you what next just Investor want walk the That's highlight or second, the Day? just Investor maybe time from Sean. to you two not Day Great. details. away level, kind bring in Could place out you points to want all I upcoming do you have your is investors that But get or

plan things. what on are that Investor to forward look couple We cover yeah. a we December Day and Xnd, to Mike, Yeah, in of

can view to talking and chemistry updated deeper want But our really into But term of our a our want provide so strategy deeper And momentum finally, And to continues and we at on we the longer third, operations, see truly then I've the commented at that transparency into doing that sure one. for integral power to meet we're own level sustainability the sustainability of Battery helping to everything then that only advantaged doing. on investments. in approach we dig investors. that investments their our to goals. is improve of First people not Materials, of growth some want intend dive view through make of as build. financial there to provide 'XX. more our customers of targets, what we progress and all, the more about center to strategy sustainability growth portfolio. our how view A been And a steps deeper I to innovative number but our we're and to our that's holistic is of Certainly,

I are would to say Investor Mike, look those forward very priorities, and the So for we Day, it. much

you. Great, thank

Your next question line with David Deutsche comes of the from Begleiter Bank.

Good just of I on think the year? you sales business morning. Sean, are to Battery gave that base What million 'XX. number exiting million $XX what's a $XX your Materials, XXXX? [ph] of And in earnings for the of expectations

morning, Yeah. Good Dave.

in So as the of this we $XX the way about EBITDA we range we sales business about communicated. commented approximately is, in the year, in to And having think right and landed it. earlier that that we million talked previously fact,

a reasonable be build on would which those basis So from. to

we XX%. look additives at growing growing, carbon as into Now forward, around batteries the the mine is for market is conductive market

foundation sort we'll And organic the - so here. a that strong call growth that of provides rate

here. outperform organic got the distributed production market growth traditional conductive portfolio between and furnace to win customers technology is position to both terms a here our labs carbon a multiple nanotubes believe technology, we've conductive of expectation rate and in in footprint, in a Our support carbon that our leading regions because blacks to we

providing be Day. of sketch kind thumbnail as a this our this deeper think how a Investor of of dive how into I about we'll that's at we definitely business. So a said, And

of just when pricing on do if moderate - portion Sean, Chemicals, raws Very what over? the here how is and roll or Performance And good. sticky,

Yeah. to moderate of is Well, now that those what generally, a see businesses, specialty like certain to or lot hold there's decline this prices. raw a in you materials ability business, when on

depends. really portfolio has - set it The it diverse applications. a of Now

them those of others, some to on in because traditionally, application of more end would have product seen the formulation is it's margin decline of But important to of sort you'd periods it. performance portions in and are able the that give And be you the the there's spectrum. loading So expansion low. the substantial of more generally - back hold you've relatively pretty what commodity is the there. in some that And

and of support materials it's do. certain would there's that's happened, expect we should see a So typically raw sort we that's how that what But dynamic there.

Thank you very much.

from with comes the Zekauskas JPMorgan. question Jeff of next Your line

Thanks very much.

Jeff. Hey,

the Hi. in Can or China to September December quarter? That weakened is today. you talk about carbon from has black pricing strengthened sequentially the quarter pricing

so From mean, to December that Jeff? quarter, you the right September now, quarter we're the in the quarter

Yes. Yes, that's right. area to because slowing a In words, growth. curtailments, there black into exactly economic other energy or filtered of carbon be that no? their Has the seems

hasn't, moving in it in prices say, directionally, I up No, coal a been would Jeff. really bit. fact, because are have And up recently trending prices China car most

So in no, that's not what the industry experiencing is China.

the Formulated factors Why Solutions down volume What year-over-year? are behind was X% that?

last Jeff. really quarter. the a Yeah, commented on single factor, It was to related planned outage we that

plant it a the online the Belgium come by One part a QX. and was back that's And in quarter. was out impacted year fiscal XXX for and that to of good our experienced plants flood of in our expected

the in out there. QX be So that through again will repairs working as and recovery we're

So singularly to that. related it's

Or the year, with are quarter. grow that right? Some least do at XX% going IHS it's people or flat how December other flat you auto year, the like aggressive? Do be next tendency? auto that your see view? to IHS. too think they think XX% you June at the will people year? next through a production Are Or And you Do have what's guys through think - of production next least

I continue with as us shortage view through the Jeff. chip and as saw 'XX during But down that year-over-year. is is revise to the largely part progress they IHS, the quarters year. we the 'XX went our impact pattern that we as will forecast of then the be growth be shortage on And and hold of showing the year chip XXXX, shape think in transition year. for the will to it full we early some that expectation took as through and improve hard certainly, consistent Yeah, which with variable, call, I the through But is some think deceleration

view this So point. different me at that's base a point. And that the that difficult to than dramatically case have this for view informs at our

have repurchase the that And couple bought lastly, Cabot Or changed X.X a such stock back should I share for why past what is, for know, is in then capital of don't structure why over view cash shares debt-to-EBITDA of you you low really be? now times. priority use important isn't And net more you? your haven't repurchase your a of years. Like of your

share capital of capital Yeah. view repurchases allocation, certainly allocation. we in of our an our component terms Well, as important

$X an and that's dividend some expect second shareholders, now time have investing two, we money we than is third. dividend an things want very in It's be Any our creating dollar changed. then I the being our better are supporting hierarchy a market the believe right one. where third of where allocation. hierarchy, and priority Battery on there best then on shareholder, on shareholders will going that for will uninterrupted and had priorities where share Materials, for growth capital in would things industry-leading Number interest capital specialty to and to allocation. then wouldn't for of been dividend important value competitive we're of again, bringing and advantaged part put do say We've advantaged investments part the we since an Our really investing number be we is repurchase, it's in to continuing maintain dividend. repurchases the would XXXX. carbons that's of and back example, degree But projects, prioritization XXXX two. would the the growth important remain be I in always then number And an maintaining share to a the

about think that's we it, Jeff. So how

Okay, you much. great. Thank so

next with of line question Jefferies. from comes Laurence the Your Alexander

a of of to you've that give Can of from you bottom has how on of growth list? kind now of a above. to the opportunities flooding all of how want of your focus - you given kinds used to kind of a and fallen portfolio, and respect the you or as facilities versus I mean, some And menu re-evaluated? is that you kind you're to has prioritizing opportunities have of of the sort walked give morning. sense the conventional a of scrub that Are Cabot mean those of Good secondly, What be what away or Or I with the for climate of for much kind the insured facilities range now have growth there the stress. sort the - to of of kind doing the events? have sense Just improved. is kind chance your do

in you let I'll them on this. order - Laurence, me Sure. take posed the that

we're that first, I it's growth to prioritizing projects guess, always critical that I work So with the growth, we respect on. think

us a that win we an a to And the framework guides a to technology Well, right have use additives natural fit do call if portfolio is space. us so why you at these importance product we as our right for in of really our at our and that global chemistry, there. look let like to battery carbon me look areas what of innovate it's framework of example, particular and depth Materials, we the Battery footprint, conductive this to you sort win think and

on gets example, And investments. for priority so claim, growth that

I think a inkjet is similar example.

have iPhones, rates traditional cetera. the et their a softened devices, here have markets, the strong those iPads, But markets. over and of more base from We the people more as are and getting news growth printing and time office in home like

and to space, in in, presses analog process those are new these packaging as and converting see number the digital that we based the diminished technology. opportunities really But digital. to in all has are growth as markets those large traditional in the go ago. thought on what commercial from inkjet that years was are from markets of of forward, we be maybe And it So a look very

is extending those in position a place where we new inkjet our natural have segments we So into to win. one a right strong feel and

that investments. framework those - we're really a it's guiding So prioritizing our where that's of growth type

strong On track question, And really of property a managing our we, insurance. course, record well. maintain in the of our portfolio very have a coverage of second then operations terms healthy we of

our us so take mitigation risks. We And long-term there's partners insurance that manage our we've approach. had change We property of no run that coverage. sort We with terms plants there provide And in of risk then well. steps.

Thank you.

the question Kevin Hocevar [Operator Instructions] Research. with line of from Northcoast comes next Your

there I disseminated and of of expected the much Curious that how how ended around expectation think actually between there. segments? want of out an this $XX fourth million, maintenance, in say, between and was $XX that Hey. up Good would to hitting were guys morning, called differentials quarter impacted you you by, everybody. quarter quarter, some those planned Last items million fiscal I costs outages the fourth kind be and

Sure.

can hi, Erica. to This that. I So is Kevin. talk

out things, said. quarter, you few called last So a we like

costs We So expected. higher that. million we to were maintenance $XX million said experience did $X of

see the So Performance you is that insurance receive in that it third we impact can largely was would did say maintenance. offset proceeds third I Performance of two reinforcement, one what probably Chemicals. Chemicals unexpected

So see is forward, those carbon million We we space plant to compound well. outages. one Performance really two I'd Belgium plant I'd online, And million the mostly say in said in plant in experience say in costs One one then total Chemicals one didn't and as that This US. $X related. going in the plant offset. black did we the US. $XX then we in back have as elevated the

thought happen Reinforcement Belgian we we have $X expect QX. the still had in Materials plant that us so impact feedstock We expected. called wouldn't was do third business. then we And But the out, see And item impact not differentials entire the as think, to out that the for we would differentials, in did QX. we million that

no was say that impact And one. in there material QX so I'd on

Okay.

Okay. Got you.

that is So stay the some to of expectation first similar then for the quarter to sounds - it plant continues down. that fourth like quarter the maybe that the being

that some think the I sequential guess, offset because of to insurance price XQ cost the And offset some of moving of as there? outages of pieces - You as headwinds don't kind down. plan to really incremental but Solutions first way that business, Purification so benefit, kind the was by Is and different the the quarter repeating carbons right that the not seasonality the repeat anyway. specialty in the and that, come matters that in that well sequentially progression from XQ not

captured. it have you think I Yes,

Okay, you. Thank okay.

back questions. the Mr. no there At Sean call would time, over this remarks. to I Keohane for turn are to like closing further

the momentum us that for I here with we've you Thank prospects joining share as on Day, which at And Boston Great. you growth our said today. Cabot. our built again we'll in earlier, in excited December more hosting We're at be about Xnd. we to Investor plan

into strategy be and businesses more taking key long-term and we're and our we'll deeper targets position that leadership well, dive as underwriting insight provide into so our growth as a of sustainability. our key And the initiatives and here

for us be agenda very got So I see able much joining a person. great think you all and hopefully, support of Cabot. Thanks we'll and we've in there today to for your

conference. This concludes today's

You disconnect. now may