02 February 2012 00:00 [Source: ICIS news]
HOUSTON (ICIS)--US carbon-black producer Cabot on Wednesday reported a 39% year-on-year drop in net income for its 2012 fiscal first quarter as a result higher taxes.
Cabot's first quarter net income totalled $46m (€35m) compared with $75m in the same period of 2011.
“During the first quarter of fiscal 2012, the company recorded a net tax provision of $16m, including a net discrete tax charge of $2m,” the company said. “The tax rate on continuing operations was 29% for the first quarter of fiscal 2012.”
The company’s income from continuing operations fell to $40m from $64m in the same period of 2011.
Cabot’s net sales and other operating revenues for the quarter rose to $762m from $692m in the same period of 2011.
The cost of sales in the first quarter was $619m, making gross profit for the quarter $143m, up from $131m in the same quarter a year ago.
Cabot’s core rubber blacks segment saw a 49% increase in earnings before interest and taxes (EBIT) at $55m from $37m in the first quarter of 2011. The company said the increase was driven by higher prices and a favourable product mix.
“We are seeing increased demand as our customers are replenishing inventories after a significant drawdown during the previous quarter,” said chief executive Patrick Prevost.
“Our businesses have available capacity to supply this demand and are expanding to support the growth anticipated in the quarters ahead.”
Cabot stock ended the day up 4.1% at $37.69.
($1 = €0.76)
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