US Cabot's Q2 pre-tax operating income falls 44%

30 April 2008 22:53  [Source: ICIS news]

HOUSTON (ICIS news)--US carbon-black producer Cabot reported on Wednesday a second-quarter pre-tax operating income of $23m (€15m), down 44% from $41m reported for the second quarter of 2007 as a result of feedstock costs.

Cabot attributed the drop to a time lag in passing through feedstock costs in the company's rubber-blacks supply contracts.

"We are aggressively managing margins on our non-contracted business and pursuing opportunities to reduce working capital given the environment of rapidly rising feedstock costs," according to a statement by Patrick Prevost, Cabot's chief executive.

Net sales were $786m for the second quarter, down from $637m for the same time last year. Cost of sales were $668m, up from $499m for the same time last year.

Second-quarter profits for Cabot's carbon black segment weres $36m for the quarter, down from $57m for the same time last year.

"Our performance during the quarter did not meet our expectations due to the continued rise of carbon black feedstock costs and weaker than anticipated results in our other businesses," Prevost said.

Nonetheless, the company's carbon-black segment improved its profitability improved from the first quarter of the year, he said.

($1 = €0.64)

By: Al Greenwood
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly