CBT - Earnings call transcript Q1 2022

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Operator

Good day and welcome to the Fourth Quarter 2000 -- I'm sorry. Good day and welcome to the First Quarter 2022 Cabot Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be question-and-answer session. To ask a question during the session [Operator Instructions] As a reminder, this call is being recorded. to Investor call Relations. like Delahunt, to now President, Vice would turn over the Steve I

You begin. may

Steve Delahunt

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

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

available Additional fiscal all we and and on our non to for over with filings, who now greater SEC, release website. issued the details. is GAAP the GAAP at made with XX-K the segment issued call Erica are to in which and XX, financial Any our then information company operating the highlights, last in strategy the press corporate release turn we section of review will certain areas of appears to on these financial earnings ended website. financial our directly financial adjustments Materials will some And will this transparency our in non night, September comparable business results the measure the provide XXXX. in an on subsequent regarding GAAP progress end available Investors along table of ESG. most a Battery reconciled measures order the company's - Sean, year to in the discuss first the our call performance, In factors, quarter results. update provide the GAAP in and - our last discuss referenced to night regarding we refer that and I involve of measure

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

Sean Keohane

Steve. strong, which you, in the to facets results the gentlemen, ladies Good call same I'm and per discipline morning, we earnings proud our is Company. Thank year. very as our across compared X% very delivered and the quarter our up was I'm of to Performance with of of quarter and businesses $X.XX, adjusted across first share today. pleased all welcome last execution

during repurchase the cash and Additionally, X%. our to of this the the free increase dividend discretionary is was of shares flow robust important an and quarter in

increases in quarter the navigating strong against macro in well strategic exceptionally a the made executed our team marked difference by price would very The substantial environment. dynamic Our objectives. successfully Materials, progress like We all this I and And calendar quarter the key and was noteworthy recently are Reinforcement our a year XXXX, regions. with outcomes in having accomplishments. to customer concluded pleased few highlight agreements, achieved

base. all chains our This As of supply -risk can to supplier to proposition customers Day, true support is supportive in we supply very market environment resonate de Investor and stressed quality, shared this operations are global their This the reach remains well and strengths in regionalization Cabot's as and local with reliability, during where period the are customers increasingly supply our with as regions. we value a company, plays continues customers. through global of looking to especially

it's but Battery advanced before I will important of priorities. Materials think build our elaborate both continued to also a During number connect the fronts, to momentum I our on we strategy. ESG to in of these we and I priorities do, quarter,

During our purpose sustainable that is our create Tomorrow for inspired recent improved This materials strategy Creating Day, launched by more new enable to future. a strategy. our daily we Investor life and

innovative will and Creating enable Tomorrow future. chemistry strategy, the reshape in potential And to sustainability relentlessly advancing that our delivering of lead our a will execute into leverage to strategy for we strategy, we deliver pursuing transform the By performance three and pillars; and and grow, in driving improvement we today the strengths Company. we this on key everything advantaged we future, better pursuing continuous valuation growth, do. our As by will

connection Our compelling strategic products clear market trends. and supportive outlook is environment the by a to of macro our expectation of an underpinned

our adjusted and our return are of we particularly Of growth flow As and capital targets cash fund about share per discretionary many growth a the Materials. result, shareholders. options, earnings are growth we to compelling Battery building call robust to excited for momentum in free strong

to like I'd this our transition now an growth critical vector. so And you update in progress to give on

conductive leading given market. value assets, and of of to carbon the technical with commercial footprint our very evidenced XXXX. approximately Materials, by which growth our The for through growth breadth creating Battery a strongly key the valuation to key The well-positioned battery of carbon success is portfolio, additives driver and of is market tomorrow customers, selling expected top reshaping our along Inkjet of to approximately and lithium-ion the proposition for Cabot is the with our additive as is and local and strong conductive XXXX, batteries producers of expected our of six a XX% in major strategy, be by of with one resonating global As vectors expected our growth in $X our support. plus E-XC, eight the XX% size be billion part company. is Cabot represent

year-over-year in EV with During the the to and increased sales we a manufacturer, volumes XX% recently top qualified quarter, QX. first new expected with start were fiscal five battery in platform

demand the Given China. outlook, announced projects capacity in acquisition quarter, in the important plant the a advanced Tianjin, strong of we including

Xuzhou, conversion produce Battery additional in in this plant deal Also, we will China, our products. start new this and quarter on are other close capacity our parts up expected of the our which network. second upgrade to we when free to is Battery to up year expect schedule to specialty Material equipment We of Material of and carbons start

Given in momentum, $XX we for promise fiscal the range a to XXXX, do priorities expect are the to lithium-ion year our we EBITDA holds to determined $XX year important of application we great full capable be and in of we and million strong into The ESG battery the number both everything million. quarter. Sustainability is Cabot potential. its integrated realize advanced at and full Cabot

innovative goals. We recently environmental to supporting achieve carbon that them net sustainability align materials leading to committed are XXXX. while Paris we agenda impact Agreement achieve to their emissions help dioxide reducing sustainability We our with to Climate joining announced our the zero by other customers are our with companies

sustainability zero on For our Financial Force opportunity natural published the matrix our many have reducing years, Disclosure this completed or and progression TCFD, is is Aligned we ambition, website. focused net our in ambition environmental recently to on we Climate-related This impact according posted matrix. a with and assessment on Task and our journey. our an risks

two also Our continued ESG was leadership further notable recognized with achievements. in

on is solve included the one developments, call were to of the I named companies is have quarter journey. second, challenges, now as as forward Bringing reduce ESG we're to innovative us essential impact we proud and look and to the recognized results will Daily this to America's turn further detail. XXX sustainability to Investor’s chemistry as been purpose. and you on of updating very in companies. the power First, customers our our progress what consecutive it's by our Business Newsweek's we most Erica more one Newsweek on we of their discuss that third financial year list This recognition. over of motivates best in by responsible of XXXX. were we And Erica. our I the

Erica McLaughlin

cash. plant million largely to $XXX Materials to of and expected flow the Discretionary for results expect million was Thanks with quarter acquisition X% in sequentially the we free Tianjin, increase first ended cash results in given of the investments We is segment for EPS last liquidity we Sean. I'll $XXX quarter of due of Chemicals fiscal quarter review quarter $XX with XXXX and remains balance of in $X.X and billion and CapEx up quarter, EBITDA from for both up range and million million. segments. an quarter XX% a higher December new another range in then was Materials $X.XX, total million strong first the XXst. the and the The CapEx full-year strong reported to growth as in This a the be China. with to of results. $XXX Reinforcement times by X.X net our start better-than-expected $XX sheet a in Performance the to Battery quarter of and debt-to-EBITDA compared adjusted of Company the conversion with with strong the relation the discussing

Our the year rate operating and tax will anticipate we the was XX% XX% fiscal quarter be XX%. rate and between for

Now moving Materials. to Reinforcement

in in in higher the a utilities Asia, same XX% in by same decrease were Materials year. prior maintenance, for to in period Higher benefit million for with the XX% The compared the the up are first by the higher volumes and by Reinforcement offset in and as and decrease to quarter, higher margins on decreased were even volumes $X Asia Higher driven tires. energy in quarter the energy largely first prices driven of our off-the-road associated growth Europe. to to compared center the by and Globally, demand period During year. strong replacement as investments. margins. volumes costs the due Due was prior flat X% America volumes yield principally of

improve second XXXX, due XXXX, Materials Looking expect agreements. calendar year of customer a Reinforcement fiscal outcome we the to EBIT the quarter to of our to

solid in related normal and New expect the and Lunar will We Year. seasonal expected remain improvement pattern the the in to with sequential volumes Americas, Europe China,

decreased in additives planned the our as volumes volumes. of line decreased site. Performance X% specialty line the to due oxides the XX% and to downtime quarter in million fence partner formulated due in fiscal compounds EBIT in Now, metal performance continued lower quarter compared in to due by to fiscal primarily Belgium first $X the fumed product turning to period plant XXXX at our fiscal solutions Year-over-year a in same by first Chemicals, outage

as specialty EV XX%, delivered Battery segment metal [Indiscernible], to of overall our continue Sean driven by volume mix product oxide application we and we noted, declined, impressive delivered strong higher growth Materials pricing fumed metal sold products offsetting from growth to in in product see as our While unit oxide demand. margins favorable we volume higher line. both carbons and in fumed Partially lines product

as And Looking ahead fumed momentum as online. up metal compounds in sequential Battery growth we XXXX, we and plants in continued step to Inkjet the a achieve and expect fiscal Materials our specialty second quarter come oxide volumes of sectors. our back

We successfully segment. to expect across offset to rising operating continue increases to the input implement costs and price

to Moving slide. the next

about Investor decisions to are and support Tomorrow talked growth allocation we we're strategy. aligned making capital for this the acquisition with Day our in December, announced Creating As and quarter at capital investments our agenda. support The that

In addition focused providing attractive to are shareholders. to an cash on also we investments, growth of these return

quarter our During dividends and repurchases. through shareholders we dividend increased and to the X% return share million $XX

over turn net We We investment-grade are rating. do liquidity the maintaining X.X I while billion now to and an Sean. it all, back times. return while will not to to able balance able were growth these sheet debt-to-EBITDA healthy call credit with and a make investments $X.X shareholders retaining to cash in of

Sean Keohane

in about Thank prepared rest coming of we first very I'll the by quarter for my and of year our we earnings feel the year. shaping out with the remainder our quarter to results our $X.XX $X.XX be you the share of are pleased is and outlook how the Erica. We're raising range guidance across momentum about out for per comments for good to Based the the today of businesses, the fiscal up. year. very our first on outlook talking adjusted close the

due replacement Performance and remain tire diversified to of in to application resilience the portfolio market Chemicals. expect our We strong the demand

pricing our with pleased mix, a see step-up to segment year outcome Performance Materials the and very strong quarter. Chemicals disciplined of expect XXXX. our seeing also I calendar customer second We're margins, agreements, the and with product and earnings starting As volumes, we're mentioned across earlier, Reinforcement strength robust execution. in in corresponding

is year-over-year increases results and quarter to EPS the on we packaging basis as continue are through in second Materials profile demand for The momentum applications. build adjusted increasing move This Battery sequential with in expected we a Inkjet as improve and year. expected as to

I'm level. businesses robust very company we're the we in plant of our and The come fundamentals markets end XXXX. of fiscal online long-term high Additionally, at where a about a our is are execute excited new are strong, remain expected to continue specialty as second to going. carbons our where Overall, half and we

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

Operator

Instructions]. [Operator

first Our Begleiter with question David from Deutsche comes Bank.

Your line open. is

David Wang

new prices you energy earnings? And sensitivity Wang provide new for can to energy due unit margins price first your the that guess, you can investment your guess, there here guidance? David the [Indiscernible] oil your And benefits I baked and what's is from on a Dave. This Hi. is your higher assumption in quantify in higher you've prices? I

Sean Keohane

Sure.

Let me to turn a little over to on Erica it provide to question. that try -- color

Erica McLaughlin

Sure.

I each we of quarter higher about when of in we the and use The we you year-over-year In margins forecast, million do terms as quarter are oil. and Reinforcement Materials, forward-curve the the in increase $X margins think asking was quantification.

would the the of for have latest be the used remaining forward-curve recently price would what in impact of just we So terms the year. oil

David Wang

your can destocking then you your talk customers? happening you on are you. demand, any OEM guess, demand? end any Thank for markets, visibility seeing just restocking your for And and I seeing were at you [Indiscernible] about

Sean Keohane

pretty remains profile robust. demand the So

resilience tire definitely good market, in in business. replacement real of strength OTR, providing market. well road their Reinforcement the the support as off Materials, some given across as That So the is the demand

reminder, like combination to diverse But and some applications. Chemicals growth In real replacement factors the stable, continues emerging strength to there's the and EV, in a strong. durable. more As of a related infrastructure somewhere applications the market to tire of more batteries, tends is be applications resilient, nicely Performance due an of XX% that in to to applications more very across XX% continue portfolio more these and grow quite be in given

general think most chain. to across pretty any In We're terms remain of seeing not I restocking, of value really inventory tight levels level in restocking.

like would say the inventory to them serve I they be. probably levels in fact, most In that are we value for various chains customers thinner than would

comment, general but restocking So a point. that's a on

David Wang

Thank you.

Operator

with question your comes Our next Barclays, Leithead from Mike open. line is

Mike Leithead

guys. morning Good Thanks. Great.

Sean Keohane

Good morning.

Mike Leithead

First question bit hoping quarters I you three months the just ago. few that more bit unpack thought remaining better could was looks a you a you what's it a like incrementally driving for flesh but expected EPS the was what's out higher could are first I driving Sean, to Obviously, outlook. better quarter more hoping be was outlook. now the than ahead

Sean Keohane

there. to but execution Mike, so so, strong of Yeah, it's bit remains demand a and really robust, quite color me on let try overall pricing you give

definitely in in that rising and contributed outlook input for while industry to having like so customer So, in business. else. we then the Reinforcement outcomes than Performance the Materials are chemical to factors And Chemicals, tire everywhere that that better pretty and is much XXXX for realized everyone agreements the expected address raise

efforts costs outlook. successful Our exceeded our recover those pricing been to through has the execution and teams rising previous actions very has our input of

remember oriented to Performance spot tends be You'll more rather contractual. than in it Chemicals;

done chasing be fantastic inputs, bit in well. of executing may a sometimes and the so it a rising And has we but period little really team a really job

vectors, businesses we number that And spent strength in on growth some Materials. terms confidence how pricing of across finally, is say of areas are our then during But performing timing time the Investor in a particular, so Battery [Indiscernible] Day. that and And action growth in I'd we continued the contributing.

also continued in So, a is factor here. building confidence those

primary So, those would the be drivers, Mike.

Mike Leithead

flow Great, second super for two cash that's this question helpful. quick maybe quarter. And Erica, then things on

First, million working cash. $XXX capital use a was of

$XX look think at So oil? flag, there $XX in was if items else is other cash is second, operating million of lumpy I I use financing there? release, Are any higher you assets there function a the lumpy of that the that other cash. a change Or press there line And million line something and the well? in of as use in was

Erica McLaughlin

Sure.

is The is oil first the capital, it mainly which the working question prices. higher

pricing is higher the largely and the you got sales inventory from higher to the by see, by input build balances. adding So, largely oil the some we've recover by flow-through balances can inventory receivables driven those The increase, costs. inventory The driven down the driven and balances QX. into receivables are higher within is price higher planned

unusual global the depends of in off not a would We level in obviously with the we assume there's than for on view I prices. prices line forward capital. So oil working capital. going would of working remain levels cash The current anything say the [Indiscernible] use expect that

see bit Reinforcement terms receivables, But through those higher we should then flow, going flows pricing flattish the to through then will We the thing the items, balances oil other from higher assuming at of we're in in Materials terms start forward. -- the contract oil say as given operating moderate, spending have in quarter impact only a impacts cash the of terms in in items flowing are, is is from there And notable QX. I'd in repairing in pretty are lumpy what plant we in insurance receive -- it come terms proceeds the are what Belgium, pretty that of of should back. But the and we're our time. what over versus through that then impacts that in of restoring a insurance the coming there site much there offset

Mike Leithead

you. Thank Great.

Operator

comes Josh with question UBS. next Our Spector from

open. is line Your

Josh Spector

to want ask Hi, and congrats I broadly really and on on taking question my a quarter just China. thanks outlook. for strong

on you you -- Curious share focus you all? of their that COVID And usual so business demand that right? we're I to a Given there's if could perhaps what there, leading managing -- and risk and management control at from impacts, China operations shifts customers Cabot's any in that, about of seem the saw and your think to outlook to making definitely Thanks. if COVID you situation, in any policy of kind as thinking have create and more thoughts just about a around does provide a comments China, have going operations to quarter an increased position be how endemic what's guys tight if ran type lot etc. your your sure

Sean Keohane

Sure.

for pleased and the certainly the and performance So outlook. very with thanks the question. Josh the We're comments

first of quarter quite strong terms in the performance. saw we So, China, what in was

And so in Reinforcement as Materials strongly, big up -- and a -- be piece and across Asia up were Pac, a volumes of that. - China our were perform

Our China quarter. in go quite to performance continued the in well

situation So as to that manage that. to operator Day, through And that we ourselves plans China. in I at this show elaborated think quarter recent consider well time while ran able during really the we well we're dynamic, in Investor and continued the is a great the were

Now, go for here, as fairly of the balance through in forward XXXX. is China stable we economic a our environment expectation

I well more shortage has float producers was power government to think new in discussed to issue There to period. now produce energy. out, that adopted related fall, which has this been allowing some power recently stimulating electricity the prices there policies the autumn early

improved ways, economy their The along effort to in some certain with in accelerating government think going these helpful. forward. related interest don't has suspending, stimulate to we were areas So, we balance reducing rates, are growth to infrastructure, there don't looking other and an and so have is the priorities expect of also issues that economic material the that disruption any situation, there some I policies been,

on trying of think this. keenly trying balance sort they're to, I focused to

lower of -- the managed to this in anywhere definitely cases least else a terms zero-COVID had the than have front, on they've much level the on reported and at world Now, policy. COVID in

ultimately sustaining balance, probably that if outbreaks, on a fairly businesses probably relates COVID I think as that but actually I think approach, to challenging -- there COVID more our it, time, tend are a because And take positive can balance management think managing over be be will disruptions. to then be a -- I little they actions to draconian which there that to more will good I and consider policy prove to on -- be when it will stability of thing. transitions cause it

how I So I been some I COVID tight a have see from -- probably But make think at how very I it. that will that's policy. has here point a what that's to they transition

Josh Spector

things this Curious those half just could later shutdowns. Thanks in just through about the thoughts. And appreciate And kind how of you're be past of performance? mean, I and obviously, volumes quickly volumes. flowing I performance the I some high talking on get a plant you think second year. in of lot year-over-year perhaps

Sean Keohane

plant be in impacted been impacts, with quarter, plant first will pleased the back online. related have quarter Belgian some that we're definitely We're coming this where the masterbatch

and our So some here from should disruptions as the themselves partners that's work out impacts [Indiscernible] of well. FMO positive,

normal as we So, I think profile we'll move more see volume a forward.

times I applications think across to the may balance, of best about, at one-and-a-half cause Chemicals all, first way it's Performance application. grow two to by portfolio diverse and a these but differences of somewhere GDP think on

And so it. best way to about still the think think that's I

So growth. pretty solid

areas capacity volume we're at course, applications, market in volume there that we'll a the we expecting the well feel, good new also, especially carbons about volume to specialty in have capacity but there, both will and on are for go are expect -- carbons, legacy, in the to -- example continue support feel pretty the later above very bring about to some some efforts for growth, high around year. Now, outlook that our continue where the as this are batteries. The Particularly growth business, support outperform batteries We where grow for there outperforming we and business. rate best numbers. to above of and rate those we some

Josh Spector

again. Okay, thanks. Congrats

Sean Keohane

Thanks Josh.

Operator

line Laurence Our your from question is next Alexander Jefferies, with open.

Dan Rizzo

Laurence. for are How you? Rizzo Dan It's morning. Good

Sean Keohane

you? Hey are Dan. How

Dan Rizzo

said, to, was think A think market at that? to going are mentioned outpace you necessarily needed to growth. going of up eight you going next XX%. the over battery but grow that years, to wondering just the be I that next, what I you year starting the with is two that to XX XXXX kind over Not say years? capacity expansions are keep

Sean Keohane

Yeah.

market just market studies. market so to recap, [Indiscernible] a plus percent XX number based the XXish, reported the So growing for is batteries on the of at Dan,

and decade, something end of that's the we XXXX. the project that for through happening to that's So through right go now out

Investor portfolio, strength have breadth technical application we a This footprint I the we and that assets, of the during our shared carbon I as the to we've three with teams percent. of a in XX grow Cabot our that labs business Day, the we all conductive is global of commercial resonates of terms think, purely our at to and and that expectations the and think Now, additives and have outpace fact over customers. real And technology are expecting years, that's function next this so plus got of value proposition really, over Cabot and world. here

here, we'll upgrade further lock network our Tianjin to some for as batteries specialty capacity carbons. we on the will our Xuzhou, high-value meet over of one will made, are on an further A adds. That'll convert that been growth couple and last be in comes here. we're there'll business. number elsewhere announcement runway putting where It will carbons. in in then for for just them years Now provide, that underway that up to facility support the be And then this that then plant there have required these capacity capacity adds sure be required the the of front, already conductive China

also capacity we expansions nanotube front, the there. have On carbon underway,

line plans of this we're here. on to think market. Again, growth next determined a good we're So, capacity to and it. meet our We're nanotube got there's to at on great it that efforts certainly the be and great putting whack build of carbon if holds three the about to million this across $XXX have of conductive promise the -- a you keep the the somewhere we're carbon think we'll momentum CapEx continue order footprint We've needs and spending of capacity sight I over years, fueling building place in here. the to

Dan Rizzo

all? it been was headwind I think that it's world. chemical easing. your you control much wondering lately, a like I in occurred China you at said others dual has within is that are or seem by doesn't to the customers highlighted as But It

Sean Keohane

the I Yeah. some of impact months ago and a power shortages It actions have taken by on China a eased think material hasn't said, as that us there I there. had were few some

where these the think run together, our + the authorities. of we and and there. But that strong short-term think venture that. how And I the it's and environmental had years, years regulatory will to joint we impact. operations, -- I'm level way performance that we appreciated transitions all it why environmental function obviously things great in well, reduce and terms XX the operating balance plants, we're lot with I built partners have as our to to that's is by to in we've economic good the pleased a So, I China through of over our things we've not Chinese been the the operator supports continue it any material We've continue Certainly, again, growth manage really very can think a of impact. a Cabot's of operate, deliver, of really in experience how

a So we're able going it's dynamic manage thanks. the But down again, to it. But advantage fairly situation it comes always China. to to in

Dan Rizzo

you much. Thank very

Operator

Loop Chris Capital. comes Our with next question Kapsch, from

open. is line Your

Chris Kapsch

morning. Good

one your I the was guidance, revised sir. had in So question context of

the better key or maybe driver. contract a key characterize realization as expected from the You negotiations the pricing

equal? of all on basis, else in the any there's benefit in either could quantify carbon for if that metrics wondering or you prices black Just a perhaps terms year-over-year way terms segment, of profit gross

Sean Keohane

Sure.

from passed pricing Battery there. guidance, a as So we've I on and upward a continued revision I the momentum on Chemicals think on vectors also things think through And comment execution driving just the recap, I'll Performance Chris, agreements more in time third, bit also few really entire but these the of the growth really real customer a then certainly strong outcomes that but and and Materials, Inkjets.

three those are drivers. the So really

pleased with very that the entire definitely the overall On customer outcome. agreements agreements, we're

I think the expect also as price world be placed demand. on and the reliable lot we volumes a some supplier resulted we're but situation of Cabot that pleased increases chain value global with supply substantial fairly with that impacting line regional the to and really in in

pretty So results. overall, strong again,

of the way $XX maybe Now, about rising of probably all the net world. around it somewhere think of of best is per quarter the in million the costs impact order to net this,

in there So natural higher rising we've to these like COX like cost-based the gas contract negotiate costs, been are prices recover to also or factors those. certain factors included of recovery outcomes world, costs but if the parts costs able of

So point, of rising important range, that recovered, impact the million understand but probably were net the to to per XX about in quarter it. those which net think way somewhere best is costs that is

Chris Kapsch

you any simply helpful, the That's on Europe, and DTA but center then prices or from were was gas over the I going to operations there. you other or benefit in through energy actions, in mitigate able spike just follow-up, energy's what's from alluded guess there converse, to that Cogen your

Sean Keohane

Yes.

in -- the Then higher prices Center Energy is and as yields some prices contributions energy as we more are valuable. technology we're certainly then, sure. that than that, energy terms the of are of benefits do So for higher

certainly spot on is side been throughs. that's the they've that DCA carbons in the we've largely adjustment, With and but of through specialty in more long flow that to And business, So been the reinforcement now. to offset or case, spot costs, been - up through whether actions. in gas it's higher of respect natural case combination able shot the market Europe,

dynamic a way certainly but able with has it. been to situation So manage team the pleased the

Chris Kapsch

if one and I sneak could in Great more. and thanks, just

to the it, that you market year growing talked in that. the Materials a I get So XX% through XX% you've and decade guys business outperforming Battery about

you Thank the on you're gauge do that that have where customer-by-customer getting that sir you way market. performance growth a a is the it an specifications benefit qualified from just do visibility outsized from validating market how out-performance, you're you comment to how any So to to, you. get relative or relative -- are out on -- the you basis on

Sean Keohane

Chris. Thanks,

ways. I couple So think a of

volumes of growth, of our in grew a more the this XX%, again, in a So and one. indicator But so backward-looking market here. one that's above growth, well strong is our that's our that's certainly an backward-looking performance business quarter, a indicator. But volume and at the certainly bit

do we visibility. pretty forward-looking, good of terms In have

So is the market fairly concentrated.

top certainly the about can it's fairly I that tail think And around a little XX% past group but market. producers concentrated the a producers. eight of bit that long and big in battery top eight the represent of I move after the a commented there's

And into various progressing. how we we're connected and efforts how our know so programs certainly are qualification

who exactly a is a So, measure what bit and And certain something that's that is will is visibility. is project a to always gives broad. moving our that rate? win participation of so pretty little but at What difficult target, of

with those eight in development of six programs, with serving top currently we're Here, the here. process others

at look somewhat we state try we I hope that issue here. and a color ultimate backward are then winners But it forward-look. to bit we're because participate if losers, that able the gives achieving less could you on way both So looking, And an how our a way is objectives? things of of from broadly to little

Chris Kapsch

Thanks for Appreciate color. the it.

Operator

to I'd Keohane. call Sean turn to over the further no are back questions, like There

Sean Keohane

thank Have Great. and again Thank to great you for much, And joining next all a today, quarter. forward very you with support of your you Cabot. look Michelle. engaging you Thank for day. we

Operator

conclude I So program. the

disconnect. a now great have may You Everyone, day.

Cabot (CBT) 1 Feb 222022 Q1 Earnings call transcript