BOSTON (Oct. 30, 2008) — Cabot Corp. reported lower earnings on higher sales for the 12 months that ended Sept. 30.
The carbon black producer said margins improved in the fourth quarter, but the contract-lag effect resulted in a decline in year-end net income to $85 million from $128 million on a 22-percent rise in sales to $3.2 billion from fiscal 2007.
The company's rubber blacks business saw margins increase in the fourth quarter, compared with the rest of the year, but the contract-lag effect hit earnings for the full year. Carbon black sales into the rubber industry grew by 32 percent on higher prices.
Cabot said volumes shipped declined in all markets around the world in the fourth quarter, including 10 percent in the Americas.