Cabot sales jump in first quarter

ERJ staff report (DS)

Boston, Massachussetts - Sales at carbon black maker Cabot Corp grew in the three months to December 2010, but profits in the carbon black division fell.

First quarter fiscal 2011 EBIT in the Rubber Blacks Business decreased by $5 million when compared to the same quarter of fiscal 2010. Globally, volumes grew by 2 percent from solid demand. Unit margins increased as a result of favorable product mix, higher pricing and the benefit of energy centres. These positive factors offset higher maintenance investment and spending related to growth activities.

When compared to the fourth quarter of fiscal 2010, EBIT in the blacks division increased by $10 million from higher unit margins, driven principally by higher prices, manufacturing efficiency and lower sequential maintenance spending. Volumes were flat compared to the fourth quarter of fiscal 2010 as market demand stabilised sequentially.

Commenting on the outlook for the Company, Patrick Prevost, Cabot's President and CEO, said, “The recovery of our end markets continues and we are well positioned in the fastest growing regions of the world. Our robust strategy and proven ability to execute will serve us well.

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Press release from Cabot