01 May 2012 23:36 [Source: ICIS news]
HOUSTON (ICIS)--US-based carbon-black producer Cabot reported on Tuesday a first-quarter net income of $240m (€182m), up from $51m for the same time last year because of higher revenue and the sale of its supermetals business.
However, Cabot also benefitted from higher revenue, which grew faster than cost of sales.
First-quarter net sales reached $844m, up 14% from $739m reported for the same time last year. Cost of sales were $671m, up 11% from $605m reported for the same time last year.
As a result, first-quarter gross profit reached $173m, up 29% from $134m reported for the same time last year.
Cabot attributed the increase to the pre-tax earnings from the company's rubber-blacks business and specialty-fluids segment. These two segments reported records in quarterly earnings.
Looking forward, Cabot chief executive Patrick Prevost said the company was optimistic about improving conditions in North America and China. At the same time, growth is continuing in emerging economies in Asia and South America.
"The growth in emerging markets is seen not only in the tyre and automotive industries, but across a variety of the industries we serve," Prevost said in a statement.
“We are delivering earnings growth through margin and capacity expansion as well as new business and product development," Prevost said. "Our increased margins were achieved through continual efficiency improvement efforts and the execution of our global pricing strategy."
However, the outlook for Europe remains challenging, he said.
($1 = €0.76)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections