BOSTON(Sept. 13) — Cabot Corp. has accounted for all its employees and their families at two Louisiana carbon black plants, which the firm said are back operating at full capacity.
Cabot said management teams and employees at plants in Franklin and Ville Platte, La., are assisting local efforts to provide short-term relief to those hit by Hurricane Katrina.
While the plants are fully operational, Cabot said customers could experience delays in deliveries because of disruptions to the transportation infrastructure in Louisiana. The company is developing contingency plans to move raw material and product in and out of the plants, which depend to an extent on New Orleans as a transportation hub and supply base.
At the same time, Cabot said the effects of Hurricane Katrina are exacerbating the materials cost situation for both carbon black feedstock and natural gas. These continued cost increases will have a negative impact on the company´s profitability by as much as 10 cents a share for the fourth quarter and probably into fiscal year 2006 as well.