Boston, Massachusetts – Cabot Corp.’s reinforcement materials business unit, which includes rubber carbon blacks, has reported a 2.7% year-on-year decline in third quarter earnings (EBIT) at $72 million.
In a 5 Aug financial results statement, the company attributed the decline mainly to lower margins in China and the global automotive slowdown.
Segment sales for the three months to end of June also fell 10.7% to $461 million, as volumes dropped 2% globally amid weak automotive production.
Volume sales improved 2% in Asia driven by China, decreased 7% in EMEA due to softer automotive production, and declined 3% in the Americas due to weaker sales in Latin America.
Cabot said the impacts were partially offset by the “favourable” terms of its calendar year 2019 tire customer agreements.