Cabot Reinforcement Materials Earnings Fall Despite Higher Volumes

Cabot Corp. has reported a decline in earnings for its Reinforcement Materials business, which primarily produces rubber grade carbon black, despite a growth in volumes. For the quarter ended June 30, segment EBIT fell 24% year-on-year to $97 million, while earnings (EBITDA) declined 20% to $117 million. Segment sales for the three-month period grew 4.5% to $599 million. The company attributed the decline in earnings to pricing pressure from 2026 tire contracts, which outweighed the growth in Asia and the Americas. Volumes increased 5% year-on-year, driven by growth in Asia-Pacific and the Americas, but declined 4% in Europe, Middle East, and Africa. The company’s outgoing president and CEO, Sean Keohane, noted that market fundamentals were showing signs of improvement, citing lower tire imports into western markets and the EU’s recent anti-dumping duties on Chinese tire imports. However, the company expects a modest sequential decline in fourth-quarter EBIT due to normal seasonal volume weakness and a less favourable regional product mix.