Cabot reports loss for year on 30 percent lower sales

ERJ staff report (DS)

Boston Massachusetts -- Cabot Corp reported a loss for the 12 months and for the three months ended September 2009. Sales for the year were down by almost 30 percent, at $2243 million (euro 1522 million) compared with $3191 million a year ago. However, the market is now recovering with sales of rubber blacks just 4 percent behind those sold a year ago for the most recent quarter.

The loss of $77 million for the year compares with a profit of $86 million a year ago. In the three months, the loss was $11 million, down from a profit of $12 million a year before.

Neverthless, the situation is improving. Cabot said, "Quarterly volumes increase 15-30% sequentially as downstream markets continue to improve in all regions." The company notes, however, that fiscal 2009 volume levels were 20-30% below fiscal 2008.

Cabot said its moves to correct the situation are ahead of schedule and costing less than expected.

Referring to the carbon black business for tyres and rubber, Cabot said, "Fourth quarter 2009 profitability increased by $5 million sequentially due to 15% higher volumes, with growth in all regions." The company said it suffered a $6 million incremental unfavorable contract lag impact from rising feedstock costs.

Cabot said volumes in the last quarter were just 4 percent behind the volumes a year earlier. Across the year, volumes were down by 21 percent. The company's restructuring efforts had contributed strongly to lower costs, especially in the final three months.

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Press release from Cabot