Cabot falls to loss on 40% sales decline in Q2

ERJ staff report (DS)

Boston, Massachusetts -- Cabot Corp reported an operating loss for the six months ended 31 March, 2009. The company said sales revenues fell by 40 percent in the three months ended March 2009, compared with the same period a year ago.

Rubber black volumes sold in the three-month period were down 28 percent compared with a year ago. Sales of rubber blacks in the three months fell by 40 percent, to $272 million, from $454 million a year ago. The rubber black unit made a loss of $13 million in the quarter, compared with a profit of $28 million a year ago.

Within the rubber black segment, Cabot said, "On a sequential quarter basis, volumes were flat with differing performance by region (North America up 12%; China up 12%; South America up 4%; the Europe, Middle East, Africa region up 1%; while Asia Pacific (excluding China) was down 22%. During the second quarter of fiscal 2009, contract lag benefits and LIFO benefit were $9 million and $3 million, respectively, compared to an unfavorable $17 million and a favorable $2 million, respectively, in the same period of fiscal 2008.

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Press release from Cabot