Yahoo Finance Cabot (CBT) Buys Solar Farm in Japan, Spurs Sustainability Goals
Cabot Corporation CBT has announced the acquisition of Shoko Co., Ltd.'s Chiba solar farm. The solar farm is adjacent to Cabot's carbon black manufacturing facility in Chiba, Japan, and will allow it to export solar power as renewable energy to the region's electrical grid. The Chiba solar farm generates up to 3,500 megawatt-hours (MWh) of electricity per year, which power more than 700 Japanese houses annually. Being a sustainable energy investment, the solar farm complements the company's sustainability strategy.
Leading the industry, Cabot, a Zacks Rank #3 (Hold) firm, is proactively investing in sustainable energy sources that can be exported to local businesses and communities, including this solar farm. With this acquisition, the company is demonstrating its commitment to being a positive contributor to the Chiba Prefecture community and providing renewable energy in the local area.
One of Cabot's global sustainability goals for 2025 is to export twice as much energy as it imports. The company uses energy from its manufacturing processes to reduce its emissions, as well as the net emissions of adjacent businesses and communities, to help the global transition to a future with reduced carbon emissions.
CBT seeks to integrate renewable energy sources into its network in order to advance its operations. Cabot Japan has improved its energy ratio, or the quantity of energy exported over imported, to 233% with the buyout of the Chiba solar farm, which represents a step further toward meeting the company’s overall 2025 energy goal.
Shares of CBT have gained 13.9% over the past year against 2.2% decline of its industry.
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On the fiscal first-quarter earnings call, Cabot stated that it expects consumer destocking to finish as volumes outside China increased in January from the prior month. As a result of COVID-19 outbreaks impacting volumes and profits, the company expects China to remain uncertain in the second quarter. Yet, it predicts that demand will progressively pick up over the quarter.
The company anticipates that customer agreements that went into effect in January will help its Reinforcement Materials segment. Its Performance Chemicals segment is expected to benefit from rising volumes across key product lines as well as the increasing demand for battery materials and inkjet applications. For fiscal 2023, Cabot expects adjusted earnings per share to range between $6.25 and $6.75.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Stocks to Consider
Better-ranked stocks worth considering in the Basic Materials space include Steel Dynamics Inc. STLD, PPG Industries, Inc. PPG and Linde plc LIN.
Steel Dynamics carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 10.4% upward in the past 60 days. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 11.3%. STLD has rallied roughly 19.2% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
PPG carries a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 20.3% upward in the past 60 days. Earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8%. PPG has gained roughly 8.5% in a year.
Linde carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has been revised 0.65% upward in the past 60 days. Earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.9%. LIN has gained roughly 13.6% in a year.
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