BOSTON (Jan. 26)—Cabot Corp.'s Chemical Business reported 12.5 percent higher earnings in its first quarter based on lower operating costs, improved product mix and currency factors.
Operating profits for the Chemical Business, which includes Cabot's carbon black business, rose to $27 million, while sales grew 14 percent to $351 million. Carbon black posted profits $5 million higher than a year ago, Cabot said, reflecting a better product mix, lower fixed costs, cost savings and exchange rate gains, which more than offset higher feedstock costs.
Looking forward, Kennett Burnes, Cabot chairman and CEO, said he is cautiously optimistic concerning the outlook for the Chemical Business segment and is encouraged by signs of recovery in Cabot's markets.