According to the "European Rubber Journal" report, Cabot Corporation of the United States released the company's financial report for the third fiscal quarter of fiscal year 2023 (i.e. the second quarter of calendar 2023) on August 7. Although Cabot's reinforcing materials business unit, which includes carbon black for rubber, saw revenue and volume decline, its earnings before interest and taxes (EBIT) grew 17%.
Report data shows that in the third fiscal quarter of this fiscal year starting in October 2022, the sales of the reinforcing materials business unit were US$624 million, a decrease of 14.5%, and the total sales volume decreased by 8%. Earnings before interest and taxes (EBIT) reached US$132 million, higher than US$113 million in the same period last year. Cabot attributed the increase in EBIT to improved unit product margins, which came from more reasonable pricing in customer agreements and a better product mix.
The company said reported sales in all global regions were affected by "lower demand for carbon black in the replacement tire market," which partially offset gains in EBIT. Among them, the sales volume of rubber carbon black in Europe, the Middle East and Africa declined the most, down 12% year-on-year; the Americas fell 10%; and the Asia region fell 5%.
Commenting on the results, Mr. Keshanen, the company's president and chief executive, said the division achieved "record earnings" in the quarter despite weaker than expected market conditions. In the near term, Koshane said, sales of reinforcing materials are expected to 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 product mix gains will drive growth in EBIT."