BOSTON (Feb. 3) — Carbon black producer Cabot Corp.´s net income fell 25 percent in the first quarter as rising raw material costs ate into the firm´s margins.
Earnings for the three months ended Dec. 31 fell to $24 million as sales rose 18.6 percent to $587 million.
"As expected, our results for the quarter were negatively impacted by the continued rise in raw material costs in rubber blacks and performance products and by higher ore costs in the tantalum business," said Chairman and CEO Kennett Burnes. "We continue to actively work to optimize our cost position to lessen the impact of raw material pressures."
The carbon black business reported a 30-percent drop in operating profits to $21 million. The business unit´s sales climbed 21.4 percent to $419 million, partly on the strength of the first-time inclusion of revenue from Showa Cabot. Rubber black sales alone grew 32.4 percent to $298 million.