Cabot's Q1 profits fall on raw material costs

Boston, Massachussetts - Cabot Corp, reported net income of $24 million for the three months ended 31 Dec., 2005, about 25 percent down on the $35 million reported a year earlier.

commenting on the results, Kennett Burnes, Cabot's chairman and ceo, said, "As expected, our results for the quarter were negatively impacted by the continued rise in raw material costs in rubber blacks and performance products and by higher ore costs in the tantalum business. We continue to actively work to optimize our cost position to lessen the impact of raw material pressures."

The Carbon Black Business reported operating profits of $21 million compared with $30 million in the first quarter of fiscal 2005 and a loss of $4 million in the fourth quarter of fiscal 2005. When compared to the first quarter of fiscal 2005, rubber blacks reported flat profitability and performance products reported a decrease in operating profits of $9 million. An otherwise flat quarter on a volume basis was helped by the acquisition of Showa Cabot, which increased volumes in rubber blacks by 5 percent, said Cabot.

Compared to the September quarter, rubber blacks reported an increase in operating profits of $21 million and performance products reported a $5 million increase in operating profitability. Seasonal volume softness and rising feedstock costs were only partially offset by higher prices.

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press releasefrom Cabot