Cabot | Strategy and Financial Highlights Information from ICIS

Edited from: “To our shareholders” annual report, “Cabot announces fourth quarter and full fiscal year 2008 operating results and “Cabot to build masterbatch facility in Dubai”, company press release

Cabot will remain focused on its strategy of creating shareholder value by generating cash from the operations of its core product lines within carbon black, metal oxides and supermetals, and by investing in research and development, regional growth, and in inkjet colourants, Aerogel, and specialty fluids in fiscal 2009 and beyond.

In keeping with its strategy of growth, the company plans to build a carbon black masterbatch plant in the Jebel Ali Free Zone of Dubai. The plant will have an initial production capacity of 25,000 tonnes/year with a provision to expand to 75,000 tonnes/year. Production is expected to begin in the third quarter of 2009.

Cabot said it has secured land for the project and construction will begin at the end of 2008. It is further believed that the plant will allow Cabot to better meet the increasing demand of its customers in the Middle East, Europe and Asia Pacific regions.

Cabot’s key strategy includes:

optimising its chemical businesses by controlling costs and managing capacity;

developing new products and businesses; and

using the cash generated by its chemical businesses to reinvest into developing new products and businesses.

Commenting on the company’s outlook for fiscal 2009 and beyond, president and chief executive office, Patrick Prevost, said, "I remain confident in Cabot's strength and in our ability to execute our long term strategy and deliver on our performance commitments. We are, however, concerned about the global economic slowdown and its effect on demand in all of our key businesses. Notwithstanding this softening, the recent unprecedented decline in carbon black raw material costs will provide a significant contract lag benefit in the coming quarter”.

The company will continue to secure orders in key market segments for Inkjet Colorants, Aerogels and Superior MicroPowders, which should lead to revenue growth in fiscal year 2009 for its New Business Segment.

Cabot states that its cash position remains strong and will serve it well in the current economic environment. Lower carbon black feedstock costs and initiatives it has undertaken since the beginning of the year will further enhance its strong liquidity position.

"Our investors can be confident that we are closely following the impact of the global slowdown on the various industrial sectors that we serve and are taking steps to manage or mitigate the effects on our business. We remain confident in the long term strength and overall health of the company", concludes Prevost.

ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.

A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.

See the article and analysis of the ICIS Top 100 on ICIS news.

Financial highlights: Cabot, year ended 30 September

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Cabot Company Structure

Cabot is a global specialty chemicals and materials company headquartered in Boston, Massachusetts, US. Cabot's major products are carbon black, fumed silica, inkjet colourants, capacitor materials and cesium formate drilling fluids.
More about Cabot Structure

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