Cabot carbon black sales down on softer volumes in US

Boston, Massachusetts – Cabot Corp. has seen volumes within its reinforcement materials segment increase, buoyed by demand from Europe and Asia.

The unit, which mainly produces carbon black for rubber reinforcement, delivered sales of $611 million in the first quarter, down 4.6% compared to the year before.

Earnings (EBITDA) for the quarter ended 31 Dec 2024, was up marginally at $147 million, compared to $146 million a year ago, Cabot reported 3 Feb.

Volumes for the period grew 1% overall, reflecting a 2% year-on-year increase in demand in Asia Pacific, 1% increase in EMEA and a 1% decline in Americas.

Cabot linked the increased earnings largely to volume growth and favourable pricing and product-mix from its calendar year 2024 customer agreements.

The gains, however, were partially offset by a less favourable geographic mix and “lower energy centre revenue,” it said.

On contract negotiations for 2025, Cabot grew volumes in Europe as many customers looked for additional supply after the sanctions on Russian and Belarussian supply came into full effect in 2024.

However, volumes in the Americas were challenging, given the continued imported Asian tires into the region, said CEO and president Sean Keohane during a conference call.

Overall, for 2025, Keohane said the underlying demand expectation globally for tire production and for automotive OE was “pretty flat.”

“In North America, our contract volumes concluded pretty consistent with last year, but we did see a reduction in volumes in South America,” he said.

For the second quarter of fiscal 2025, Cabot expects reinforcement materials earnings to improve modestly as compared to the first quarter.

Volumes are expected to remain relatively consistent with the first quarter, but the company anticipates a “more favourable geographic mix”, as volumes improve in Europe.

In Asia, however, demand is expected to drop in the second quarter due to lunar new year holiday in late January.