BOSTON (Sept. 27) — Cabot Corp expects to incur a $15 million charge in 2006 and 2007 as part of a cost-reduction initiative at its carbon black operations.
The Boston-based specialty chemicals maker will record an $8 million expense in the fourth quarter of fiscal 2006 and the remainder by the end of fiscal 2007 primarily from paying out employment termination benefits.
Under the plan, about 130 positions will be eliminated in Cabot´s sales, manufacturing and technical service areas.
"We have made every attempt to address the cost issues facing the carbon black business in other ways, but we are convinced that a more structural cost reduction effort must be implemented due to the continued volatility of feedstock and utility costs," said Kennett Burnes, Cabot chairman and CEO, said.