BOSTON (July 30, 2009)—Cabot Corp reported a net loss of $12 million in the three months ended June 30.
However, the company said volumes in all key businesses improved sequentially with emerging markets showing strongest signs of recovery.
Patrick Prevost, Cabot's President and CEO, said the profitability of the firm's business segments improved by $51 million sequentially, excluding restructuring charges. He said Cabot is encouraged by volume increases throughout the quarter. Carbon black margins improved as a result of aggressive commercial efforts and the reduced impact of older, high cost inventories, he said.
When compared to the second quarter of fiscal 2009, the Rubber Blacks unit's profitability increased by $28 million because of higher volumes and unit margins and lower operating expenses from restructuring and cost saving actions.
Volumes increased by 8 percent sequentially, as improvements in emerging markets (China up 34 percent; Asia Pacific, excluding China, up 25 percengt; South America up 6 percent) more than offset declines in more developed markets (North America and Europe each down 7 percent).
When compared to the third quarter of fiscal 2008, profitability decreased by $32 million as a result of 24 percent lower volumes from weaker global demand in the tire and automotive markets and lower unit margins from older, high cost inventories.
This decline was partially offset by lower operating expenses from restructuring and cost saving actions, the company said.