Boston, Massachusetts – Cabot Corp. has posted a 41% increase in 2017 earnings (EBIT) in its reinforcement materials segment to $193 million, driven by higher margins and improved demand in China.
The segment, which produces rubber & speciality reinforcement materials, posted a 2% year-on-year increase in earnings for the three months to end of September, on 27% higher sales at $367 million for the quarter.
“The increase in EBIT was principally driven by higher unit margins and volumes from calendar year 2017 customer contracts and an improved demand environment in China,” said Cabot 31 Oct.
Sales rose 24% to $1.38 billion for the full year, compared to 1.10 billion the previous year.
Sales volumes increased by 4% during the fourth quarter of 2017, particularly thanks to volume growth in Europe, Middle East and Africa (EMEA) region, the company added.
The EMEA and North America regions both showed an 11% hike in volumes, while the figure dropped by 3% in Asia.
Commenting on the results, Cabot CEO and president Sean Keohane said the quarter was the “strongest” since the third quarter of 2014.