Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Tire
    • Airless Tires
    • Non-Tire
    • More News
    • Suppliers
    • Silicone
    • Latex
    • Technical Notebooks
    • Opinion
    • Online Exclusive
    • Special Reports
    • Automotive
    • Executive Action
    • Government/Legal
    • Sustainability
    • Blogs
      • Products
      • Wacky World of Rubber
    • PFAS
    • Best Places to Work
    • War in Ukraine
    • International Tire Exhibition & Conference
    • Women Breaking the Mold
  • Rubber Division IEC
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • PFAS Live
    • Ask the Expert
    • International Tire Exhibition & Conference (ITEC)
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Financial
December 03, 2020 12:00 PM

Cabot expects sharp recovery in 2021, may not reach 2019 levels

European Rubber Journal Report
  • Tweet
  • Share
  • Share
  • Email
  • More

    BOSTON—Cabot Corp.'s reinforcement materials segment is set for a sharp recovery in 2021, but it may not be enough to reach 2019 volume levels, according to president and CEO Sean Keohane.

    The segment, which supplies carbon black materials to the automotive and tire industries, will be driven by strong Asian spot pricing, the feedstock costs rise there, and volume strength driven by stronger underlying demand, Keohane said in a Nov. 24 earnings call.

    But according to Keohane, LMC projections suggest a 5-6 percent decline in tire demand in 2021, compared to 2019 levels.

    "We're seeing very sharp recovery now, which is good and that recovery is likely going to continue as long as we don't have a big reversal in terms of COVID-related economic impacts," he said.

    However there will still be "a little further ground to cover to get back to what you call normal or what I might say with the '19 volume levels," he said.

    Keohane said tire and automotive demand is strengthening with month-on-month improvement continuing through October and into November.

    "The economic recovery is unquestionably linked to stabilizing the public health crisis and this remains the key to bringing consumer confidence and the economy back to its full potential," he added.

    Citing LMC estimates, Keohane said global replacement tire sales are now expected to decline 12 percent for the full calendar year of 2020.

    Light vehicle replacement tire sales improved in all regions in the September quarter, down only 6 percent year-over-year compared to a decline of 31 percent in the June quarter.

    The December quarter is expected to approach 2019 levels with total replacement tire sales projected to be down 2 percent year-over-year.

    "Building on the V-shaped recovery in the September quarter, we continue to see consistent improvement in terms of mobility and miles driven, and this bodes well for the replacement demand of tires," he said.

    Cabot's reinforcement materials segment posted a 30 percent year-on-year decline in sales to $1.2 billion for the fiscal year ended Sept. 30. Segment earnings before tax (EBIT) declined by nearly 40 percent to $162 million.

    Related Article
    Cabot ready for recovery as auto, tire industries gain momentum
    Cabot's Louisiana plant upgrades will improve emissions, add jobs
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Merger: Tipco Technologies, HydraTech join forces for hose distribution
    2
    Consumer Reports: EVs are far less reliable than ICE
    3
    Kumho, Synthos partner on neodymium-butadiene rubber
    4
    EPA targets hazardous emissions from tire rubber mixing
    5
    Watch: Continental all-in with simulation in tire development
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Tire
      • Airless Tires
      • Non-Tire
      • More News
        • Automotive
        • Executive Action
        • Government/Legal
        • Sustainability
        • Blogs
          • Products
          • Wacky World of Rubber
      • Suppliers
      • Silicone
      • Latex
      • Technical Notebooks
      • Opinion
      • Online Exclusive
      • Special Reports
        • PFAS
        • Best Places to Work
        • War in Ukraine
        • International Tire Exhibition & Conference
        • Women Breaking the Mold
    • Rubber Division IEC
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • International Tire Exhibition & Conference (ITEC)
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • PFAS Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION