Cabot's rubber carbon black sales fell 8% in first half, but profits still increased 17%

　　As reported by the "European Rubber Journal," Cabot Corporation, a U.S.-based company, released its financial report for the third fiscal quarter of fiscal year 2023 (covering the second quarter of calendar year 2023) on August 7. Despite a decrease in revenue and volume within Cabot's reinforcing materials business unit, which encompasses carbon black for rubber, the company saw a notable 17% growth in earnings before interest and taxes (EBIT).

　　According to the data presented in the report, during the third fiscal quarter of this year commencing in October 2022, the sales of the reinforcing materials business unit amounted to $624 million, marking a 14.5% decline, with the total sales volume reducing by 8%. Earnings before interest and taxes (EBIT) reached $132 million, surpassing the $113 million recorded in the corresponding period last year. Cabot attributed this increase in EBIT to enhanced unit product margins, derived from more equitable pricing in customer agreements and an improved product mix.

　　The company noted that reported sales in all global regions were impacted by "lower demand for carbon black in the replacement tire market," which partially offset the gains in EBIT. Among these regions, sales volumes of rubber carbon black in Europe, the Middle East, and Africa experienced the most significant decline, down by 12% year-on-year; the Americas saw a 10% decrease; and the Asian region reported a 5% drop.

　　Reflecting on these results, Mr. Keshanen, the company's president and chief executive, expressed satisfaction with the division's achievement of "record earnings" in the quarter, even amidst market conditions that were weaker than anticipated. In the short term, Koshane anticipated that sales of reinforcing materials would remain relatively stable across regions, "with the exception of some seasonal declines in Europe. We continue to believe pricing will remain stable in customer agreements through calendar year 2023," and emphasized that gains in the product mix would be a driving force behind EBIT growth.