Boston, Massachusetts – Cabot Corp. has reported a 45% year-on-year rise in earnings (EBIT) to $74 million at its Reinforcement Materials unit for its fiscal third quarter – lifting margins 2 percentage points to 16%.
Higher earnings, said Cabot, were driven mainly by “continued strong volume growth globally, expanded unit margins in Asia, and improved pricing and product mix from 2018 customer agreements.”
In its report for the three months to 30 June, Cabot noted higher spot pricing and an improved pricing and product mix from tire customer agreements during this calendar-year.
Globally volumes increased 6% year-on-year, outpacing the market in all regions, added Cabot’s 6 Aug statement. This included increases of 8% in Asia, 3% in EMEA and 5% in the Americas.
For his part, president and CEO Sean Keohane highlighted “expanded unit margins from our leadership position in Asia and the delivery of volume growth and price improvements in our 2018 customer agreements.”
During the quarter Cabot announced the addition of 300 kilotonnes annual carbon black capacity, noted Keohane, who expects the Reinforcement Materials business to continue its “robust performance” in the fourth quarter.
Cabot’s statement did, however, point out that a higher level of turnaround and maintenance related activity was anticipated in the final quarter.