BOSTON—Despite a "dramatic COVID-19 impact" on its third quarter sales and earnings, Cabot Corp. sees signs of recovery in the market as production starts to pick up in the automotive and tire industries.
During the three months to end of June, the company's reinforcement materials segment, which includes rubber carbon black operations, reported a 57 percent year-on-year decrease in sales to $197 million, on 42 percent lower volumes.
Third quarter earnings (EBIT) went into negative territory, declining by $77 million to negative $5 million, due mainly to lower volumes, Cabot announced Aug 7.
Volumes, Cabot said, fell as a result of temporary shutdowns at tire and automotive plants in Europe and the Americas, which posted decreases of 51 percent and 59 percent, respectively. In Asia, volumes were down 26 percent.
However, Cabot noted a 45 percent sequential increase in volumes in the month of June as compared to May.
In addition, July volumes improved sequentially from June and were 9 percent below July of last year, according to the company.