Cabot announced plans Thursday to launch an IPO of stock for about 15 percent of its microelectronics materials business among a number of initiatives aimed at boosting shareholder value. Cabot also said it would eliminate 250 jobs and cut $30 million to $35 million in annual costs from its core businesses to increase the overall financial performance of the company.
After an intensive review of its businesses, Cabot said its management decided an IPO will help make its microelectronic materials division move competitive. The division is the world's largest supplier of slurries for chemical mechanical (CMP) planarization. Earlier this month, Cabot jumped into the CMP pad business after months of product development.
Samuel Bodman, chairman and CEO of Boston-based Cabot, said the company's management team conducted an extensive review of its businesses in the past several months to identify areas for improved earnings and opportunities to increase shareholder value. A number of initiatives resulted from the review, including a cost-cutting program intended to save $30 million to $35 million in the fiscal 2000 year.
Also Thursday, Cabot reported results for the company's third fiscal quarter, ended June 30. The company's net income slipped to $22.4 million from $33.3 million in the quarter last year. However, the company said year-to-year improvements in earnings were recorded in the microelectronics materials business.