Cabot reinforcement segment reports jump in sales, earnings

Boston, Massachusetts – Cabot Corp.’s reinforcement materials segment, which includes its rubber carbon black business, has posted a 33% year-on-year growth in full-year earnings (EBITDA) to $350 million (€306 million).

Revenues for the segment rose 28% to $1.77 billion for the fiscal year ended 30 Sept, Cabot added in an annual results presentation issued 5 Nov.

The higher earnings, said Cabot, was driven by strong volume growth, expanded margins in Asia and improved pricing and product mix from customers – only partially offset by higher maintenance costs.

Cabot reported a 4% improvement in volumes globally, with Asia driving growth with a 9% increase in demand. Europe, Middle East and Africa saw volumes increase by 1% for the full year, while the figure fell 1% for Americas.

For 2019, Cabot’s CEO and president Sean Keohane expects the reinforcement materials segment to benefit from ‘positive customer agreements’ as well as a “strong market position” in Asia.

Strong growth is expected particularly in China, where there is high replacement-tire demand.

Additionally, Cabot expects global environmental regulations to favour its operations as a “compliant” carbon black producer in 2019.