Cabot’s reinforcement materials unit posts 18% rise in earnings

Boston, Massachusetts – Cabot Corp.’s reinforcement materials segment, which includes rubber grade carbon black production, has reported a significant rise in second quarter earnings.

For the three months to 31 March, the segment posted marginally improved sales, at $676 million, helped by higher pricing and improved product mix.

Earnings (EBITDA) increased by 18% year-on-year to $166 million, reflecting improved unit margins from higher pricing and improved product mix in 2024 agreements.

Overall, volumes at the reinforcing materials unit increased 6% year-on-year globally, driven by growth in Asia and Europe of 21% and 4% respectively.

The positive trends in the two regions contrasted with the Americas, where volumes fell 8% year-on-year, continued Cabot's 7 May financial statement.

Reinforcement materials “continued to demonstrate excellent performance” and “continues to deliver exceptional results,” commented president and CEO Sean Keohane.

For the third quarter, Cabot expects earnings to be in line with the second quarter, with higher plant-maintenance costs set to be offset by lower energy pricing.

In terms of demand, Cabot expects volumes to see 'modest sequential improvement' including higher volumes in the Americas.