Back to top

Image: Bigstock

Cabot (CBT) Joins US Energy Department's Better Plants Program

Read MoreHide Full Article

Cabot Corporation (CBT - Free Report) recently announced a collaboration with the U.S. Department of Energy's (“DOE”) Better Plants program. The program is a national, voluntary collaboration that aims to significantly enhance energy efficiency in the U.S. industrial sector.

Cabot expects this engagement with the DOE to help boost its energy efficiency performance as it works toward its goal of achieving net zero emissions by 2050.

The initiative covers Cabot's present manufacturing facilities in the United States. Better Plants currently has more than 280 partners covering every major U.S. industrial sector and comprises over 3,600 plants across the country.

Cabot, which is among the prominent players in the chemical space along with Olin Corporation (OLN - Free Report) , The Chemours Company (CC - Free Report) and Huntsman Corporation (HUN - Free Report) , expects to be able to use the partnership's lessons learned to further progress its energy efficiency improvement operations in the United States.

The company believes that participating in the DOE's Better Plants program will assist it in identifying and implementing new strategies and best practices that will allow it to continue to improve its energy efficiency.

The company, on its fiscal third-quarter earnings call, said that it expects steady sequential volumes and strong EBIT growth year over year in Reinforcement Materials due to pricing and mix benefits in customer agreements. For Performance Chemicals, it expects stable sequential volumes in major product lines, with moderate growth in battery materials and inkjet. Pricing pressure in China's EV value chain is expected to affect battery materials in the short term. CBT expects EBITDA results for fiscal 2023 to be lower than its earlier communicated guidance. Fiscal fourth-quarter adjusted EPS is projected to be in the range of $1.40 to $1.55, leading to a full-year range of $5.13 to $5.28.

Another prominent chemical maker, Olin recently delivered forecast-topping earnings performance in the second quarter. OLN’s EPS of $1.13 surpassed the Zacks Consensus Estimate of $1.04. The company expects adjusted EBITDA for full-year 2023 in the range of $1.4 billion.

Chemours’ second-quarter adjusted EPS of $1.10 also beat the Zacks Consensus Estimate of $1.09. CC projects adjusted EBITDA of $1.1 billion to $1.175 billion for 2023.

Huntsman’s second-quarter adjusted earnings per share fell to 22 cents from $1.21 in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of 29 cents.


 

Published in