Boston, Massachusetts – Lower margins and higher raw materials costs have impacted earnings at Cabot Corp.’s reinforcement materials business for the quarter ended 31 March.
The segment, which includes Cabot’s rubber carbon blacks unit, reported earnings of $61 million for the quarter, down 22% from the year before.
Pricing declines in China and higher raw-material costs linked to feedstock differentials contributed to the reversal, Cabot reported 6 May.
Volumes decreased 1% year-over-year, mainly due to a 6% decline in Europe, Middle East and Africa (EMEA) on softer automotive demand.
Driven by China, Asia saw volumes increase 2%, while volumes in the Americas fell 1%, due in part to a weaker South America market, the company added.