Cabot earnings down 15 percent on higher materials costs

BOSTON (Jan. 27)—Cabot Corp. reported lower earnings in the firm's first quarter ended Dec. 31 as margins on carbon black declined in the wake of rising feedstock costs and a lag in pricing adjustments in certain sectors. Net earnings fell 15 percent to $33 million as sales dropped 8.2 percent to $408 million. The operating profit for the carbon black business fell $6 million from the same quarter last year but was $5 million higher than the fourth quarter, Cabot said. Carbon black volumes increased 7 percent vs. the first three months of fiscal 2002. Cabot expects better results in its second quarter because of price increases in the non-contracted carbon black business, according to Kennett F. Burnes, Cabot chairman and CEO.