BOSTON—Cabot Corp.'s reinforcement materials segment, which includes its rubber carbon black business, has posted a 33 percent year-on-year growth in full-year earnings (EBITDA) to $350 million.
Revenue for the segment rose 28 percent to $1.77 billion for the fiscal year ended ended Sept. 30, Cabot added in an annual results presentation issued Nov. 5.
Strong volume growth, expanded margins in Asia and improved pricing and product mix from customers helped to drive the higher earnings, Cabot said, noting that the earning were only slightly offset by higher maintenance costs.
Cabot reported a 4 percent improvement in volumes globally, with Asia driving growth with a 9 percent increase in demand. Europe, Middle East and Africa saw volumes increase by 1 percent for the full year, while volumes fell 1percent for Americas.
For 2019, Cabot's CEO and president Sean Keohane expects the reinforcement materials segment to benefit from "positive customer agreements" as well as a "strong market position" in Asia.
Strong growth is expected particularly in China, where there is high replacement-tire demand.
Additionally, Cabot expects global environmental regulations to favor its operations as a compliant carbon black producer in 2019.