Cabot expects ‘record results’ for 2023 in reinforcement materials

Boston, Massachusetts – Cabot Corp. expects to deliver record results within its reinforcement materials segment, which includes production of rubber-reinforcing carbon blacks.

For Cabot's fiscal second quarter, ended 31 March, earnings (EBIT) within the segment were up 21% year-on-year at $122 million, on 3% higher sales of $672 million.

Cabot linked the increased earnings on rubber blacks to improved unit margins due to better pricing and product-mix within its fiscal 2023 customer agreements.

The gains were, however, partially offset by 7% lower volumes and higher costs, the Boston-headquartered company noted.

According to Cabot, lower volumes were experienced across all regions, with Asia registering the largest decrease, driven by the impact of Covid-19 in China.

The US supplier expects the market to improve sequentially, especially in Asia, as demand strengthens after the easing of Covid measures.

Overall, Cabot forecast 2023 results for the rubber blacks segment to reach a 'record high', driven by “improved price and product-mix in annual customer agreements.”

In terms of supply and demand fundamentals, the company predicted continued strong demand and high utilisations rates in the Americas and in EMEA.

The carbon black producer also anticipates that volumes will “return to normalised levels” in the second half of the year.