Cabot posts sales of $3.1 bn for fiscal 2011

ERJ staff report (LMH)

Boston - Cabot Corp., which produces carbon black and speciality chemicals, has posted full year sales of $3.1 billion (Euro 2.2 billion), up from $2.7 billion in fiscal 2010, with a net income of $235 million, up from $154 million year-on-year.

In the fourth quarter ended 30 Sept 2011, Cabot reported sales of $832 million, up from $700 million in Q4 2010. Income for the quarter was $49 million, up from $35 million the previous year.

In the company's rubber blacks business, Q4 earnings (EBIT) increased by $13 million. Higher prices, a favourable product mix, and energy centre benefits drove the increase, Cabot said in a 26 Oct results report.

The company said these factors offset the impact of $11 million of higher fixed costs and 3 percent lower volumes, excluding the volume impact of the closure of our carbon black facility in India, when compared to the fourth quarter of fiscal 2010.

Sales in this business were $528 million for the fourth quarter, up from $424 million. For fiscal 2011 as a whole, sales were $2 billion, up from $1.7 billion year-on-year.

“In the fourth quarter, we continued to benefit from our ongoing value pricing initiatives. We were impacted to some degree by volume softness and to a larger extent from deliberate operating decisions that increased our costs,” said Patrick Prevost CEO of Cabot.

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Press release from Cabot Corp.