You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Last night, we released results for our first quarter of fiscal year 2021 copies of which are posted in the Investor Relations section of our website.
In order to provide greater transparency regarding our operating performance, we will refer to certain non-GAAP financial measures that involve adjustments to GAAP results.
Any non-GAAP financial measures presented should not be considered to be an alternative to financial measures required by GAAP.
I'm very pleased with the exceptional operating results we've reported as we saw a strengthening recovery across our end markets.
For the quarter, we generated record adjusted earnings per share of $1.18 and segment EBIT of $140 million.
The results were driven by improving demand trends, robust unit margins, disciplined operational execution, and strong performance in our targeted growth initiatives.
I'd like to recognize the extraordinary employees of Cabot, whose team work and commitment made it possible for us to meet the dynamic needs of our customers while maintaining the safety of our people and our communities.
The COVID pandemic has challenged our normal ways of working, but I believe our strong culture of connectivity and collaboration enabled us to distinguish Cabot in the marketplace, and we will continue to build on these strengths into 2021.
During the quarter, we saw strong volumes in the tire and automotive markets as the recovery momentum continued globally with a sharp rebound of the lows experienced last spring.
We are pleased to see that miles driven trends have improved, though still generally lagged pre-COVID levels.
In terms of automotive builds, a similar trend has taken hold.
With both end markets still below prior peaks, we are optimistic about our growth runway as the economic recovery strengthens.
As highlighted in previous calls, we experienced real strength throughout 2020 for products sold into the infrastructure, packaging and consumer sectors and this continued in our first fiscal quarter of 2021.
Our strong product portfolio, global reach and technical support have enabled us to capitalize on favorable infrastructure trends in wire and cable, pipe and geo membranes.
Additionally, the COVID pandemic has changed certain consumer behaviors and these trends are supportive of our packaging and consumer-driven applications.
While the underlying end market trends are favorable, there likely was some level of channel replenishment in the quarter as the combination of sharply [Technical Issues] and low inventories in most value chains created upward pressure on orders.
We are also seeing tightness across transportation modes globally and the supply chain uncertainty is likely causing customers to build some inventory to mitigate disruptions.
I would like to spend a little time now on China.
[Technical Issues] had driven some softening in that market.
We are seeing real strength there now.
China was the only major economy to avoid a recession in 2020 and the market there was very strong for us in Q1 as PMI hit 57 and industrial production surged.
As we look forward, our belief in the fundamentals of the China market is strong and our long-standing strategic assumptions remain sound.
Given that almost 40% of the world's tires are produced in China and 50% of the world's silicones, our differentiated position there means we are extremely well-positioned for growth.
We believe that the feedstock markets will be in balance over the long-term, which should provide a foundation of stability over time.
And finally we expect environmental pressures will continue to ratchet and Cabot's leadership and sustainability will position us in a differentiated way relative to competition.
Looking at our segments, Reinforcement Materials generated record EBIT performance in the quarter driven by very strong results in Asia as our focus on margin paid off.
Our global footprint and focus on operational excellence are the foundations of our customer value proposition and I believe we are seeing benefits of that in our results.
During the quarter we completed the negotiation of our Reinforcement Materials customer agreements for calendar year 2021.
We are pleased with the outcome, which was broadly in line with our 2020 agreements in terms of pricing and share.
This is a positive development as we negotiated during a period of low volumes and extremely uncertain forward visibility.
By maintaining our share we will participate in a demand recovery with our customers.
We were also very pleased to see the significant step-up in results in the Performance Chemicals segment.
The segment delivered EBIT in the first fiscal quarter of $54 million, up 32% compared to the first fiscal quarter of 2020.
This was primarily due to higher volumes across all applications, strong product mix from automotive applications and specialty carbons and compounds, and progress in our targeted market growth initiatives.
Despite the pandemic we continue to advance critical strategic initiatives that we believe will create long-term value while staying committed to our balanced capital allocation framework.
In Xuzhou, China, we're in the process of converting this acquired plant to manufacture specialty carbons.
The strategic project will provide growth capacity for a high value specialty carbons grade and complement our footprint so that we are balanced geographically.
This project is progressing well and we remain on track for completion in early calendar 2022.
In the battery space, the integration of Shenzhen Sanshun Nano into our Energy Materials business is complete and sales of our conductive carbon additives are growing at attractive rates.
Customer adoptions and sales with the top 10 global battery producers continue to build momentum and we believe this business will grow to become a meaningful profit contributor for Cabot.
We are also making important progress to grow our inkjet business.
Our investment focus over the last couple of years has been in the space of packaging as that sector begins a transition from analog to digital printing with inkjet technology.
Our sales are growing in the packaging space and we are well-positioned with product adoptions at many of the leading printer OEMs. We expect the penetration of inkjet technology to accelerate over the next three years and we believe we are extremely well-positioned.
These investments are critical in supporting our earnings growth targets and we've been disciplined in our choices and execution so that we balance growth along with cash return to shareholders.
In addition to our growth investments, sustainability and ESG leadership have long been a strategic priority for Cabot and their importance is growing in the eyes of our stakeholders.
I am pleased to highlight two achievements this quarter that demonstrate our industry leading position.
First, we received a Platinum level rating in recognition of our sustainability efforts from EcoVadis.
EcoVadis is an independent assessment organization that evaluates company's sustainability programs in the areas of environment, labor practices and human rights, ethics and sustainable procurement.
Many of our customers utilize EcoVadis to confirm performance of their supply chain partners.
And our Platinum rating confirms that Cabot is ranked among the top 1% of companies in its peer group in the manufacturing of basic chemicals.
We are also proud of being named one of America's Most Responsible Companies 2021 by Newsweek magazine.
This is the second year that Cabot has received this recognition, which was developed in 2020 to highlight the most responsible companies in the United States across 14 industries.
This accomplishment recognizes Cabot's reputation and programs in corporate governance, community engagement and management of environmental performance, as well as transparent reporting.
Sustainability, leadership and corporate responsibility are integrated in the business strategy and daily management of Cabot and by leading in this area we will ensure that all stakeholders are part of our success.
I will start with discussing results in the Reinforcement Materials segment.
The Reinforcement Materials segments delivered record operating results with EBIT of $88 million compared to the same quarter of fiscal 2020 driven by improved pricing and product mix in our calendar year 2020 tire customer agreement and with spot customers in the Asia region.
This improvement included our ability to raise prices ahead of rising feedstock cost in Asia that shows strong unit margins.
Globally volumes were up 1% in the first quarter as compared to the same period of the prior year primarily due to 13% growth in Europe and 9% higher volumes in the Americas as key end market demand continue to recover along with some level of inventory replenishments from the drawdowns earlier in the calendar year.
Asia volumes were down 8% year-over-year largely due to a schedule planned turnaround and our decision to balance pricing and volume in order to improve margin levels.
Looking ahead to the second quarter of 2021 we expect stronger year-over-year EBIT in the second quarter as compared to the prior year driven by higher year-over-year volumes.
Looking sequentially, we expect volumes to remain solid slightly higher than the first fiscal quarter.
We anticipate that margins will moderate from the levels seen in the first quarter as [Indecipherable] cost increase and we will not experience the same pricing tailwind in Asia ahead of costs.
In addition, we anticipate an increase in fixed costs sequentially as volumes increase and we spend a bit more on maintenance activity.
Now turning to Performance Chemicals, EBIT increased by $13 million as compared to the first fiscal quarter of 2020 primarily due to higher volumes and improved product mix in specialty carbons and compounds product lines.
Year-over-year volumes increased by 9% in both the Performance Additives and Formulated Solutions businesses driven by increases across all of our key product lines from higher demand levels and some level of customer inventory replenishment during the quarter.
We experienced strong demand related to automotive application, which drove the favorable mix in the specialty carbons and compounds product lines.
These favorable impacts were partially offset by weaker pricing and product mix year-over-year in our fumed silica product line.
Looking ahead to the second quarter of fiscal 2021 we expect stronger year-over-year EBIT in the second quarter as compared to the prior year driven by higher year-over-year volumes.
Looking sequentially, we expect EBIT will moderate somewhat from the first quarter as raw material costs increase and specialty carbons and compounds product lines and we expect higher costs associated with the draw-down of inventory levels in the quarter.
Moving to Purification Solutions, EBIT in the first quarter of 2021 was flat compared to the first quarter of fiscal 2020.
The reduction in fixed costs resulting from the sale of our mine in Marshall, Texas and the related long-term supply agreement was offset by reduced demand in mercury removal applications and higher costs associated with the reduction of inventory levels related to the transition to a long-term supply agreement.
Looking ahead to the second quarter, we expect to see a sequential EBIT increase from improved pricing and product mix for specialty applications and lower fixed cost.
I will now turn to corporate items.
We ended the quarter with a cash balance of $147 million, and our liquidity position remains strong at approximately $1.5 billion.
During the first quarter of fiscal 2021, cash flows from operating activities were $21 million, which included a working capital increase of $99 million.
The working capital increase was largely driven by growth related to net working capital, as accounts receivables increased with higher sales and inventory increased from purchases of higher cost raw materials.
The change in net working capital also included the final payment of $33 million related to the prior year respirator settlement.
Capital expenditures for the first quarter of fiscal 2021 were $29 million.
For the full year, we expect capital expenditures to be between $175 million and $200 million.
This estimate includes continued EPA related compliance spend and capital related to upgrading our new China carbon black plant to produce specialty products.
Additional uses of cash during the quarter included $20 million for dividend.
Our operating tax rate was 30% for the first quarter of fiscal 2021, and we continue to anticipate the fiscal year rate will be between 28% and 30%.
We are very pleased with the record results in the first quarter of 2021 with volumes recovering from the COVID-related lows we experienced in fiscal 2020 and the great execution across the organization.
We achieved record-setting results in Reinforcement Materials and much improved performance in the Performance Chemicals' segment.
This is a great start to our fiscal year.
As I look at the second quarter, there are some tailwinds that benefited our results in the first quarter that we don't expect to repeat.
Based on the underlying business performance, we expect adjusted earnings per share in the second quarter to be in the range of $0.90 to a $1.
While I expect our second quarter adjusted earnings per share to moderate from the first quarter, I believe this level of expected earnings in the second quarter reflects how well our businesses are performing in the current environment.
January volumes were strong and we anticipate the underlying demands in our key end markets will remain robust during the quarter driving year-over-year EBIT growth across all segments.
On the cash side, we anticipate our cash and liquidity will remain robust.
Net working capital increases should moderate from what we saw in the first quarter with more consistent volume levels going forward.
As the fiscal year unfolds, we expect the environment will remain uncertain and there are several factors that we will be managing closely.
The first is the level and timing of COVID-19 vaccine distribution across the world and its impact on the economic recovery.
Infection rates remain very high in many parts of the world and the stability of economic growth will depend on favorable trends in reducing the level of infection.
Next is Global Logistics where we have begun to see some negative impact in terms of availability and cost of transportation in our supply chain.
This influence is being felt across global value chains and may take some time to fully stabilize.
And finally, the movement of pricing and input costs particularly in the spot markets in Asia.
We have demonstrated our ability to execute well over the past year no matter what the challenge and I have confidence that this will continue in the year to come.
Our company's true character has been showcased during these times of adversity.
I am proud of how the team has responded with great resilience and a focus on our customers, our communities and one another.
Our exceptional first quarter results are a true testament to our company's capabilities and that position us well for a successful 2021.

user
sees q2 adjusted earnings per share $0.90 to $1.00.
q1 adjusted earnings per share $1.18.
about $1.5 billion of liquidity, total debt to ebitda ratio of 2.5x as of december 31, 2020.
anticipate demand to remain strong in q2 with january levels starting quarter above prior year.
anticipate increasing raw material & fixed costs sequentially, less customer inventory replenishment than experienced in q1.

assistant