February 11, 2025 – Cabot Corporation’s Reinforcement Materials Division Sees Sales Surge, Driven by Asian and European Markets
Cabot Corporation has recently announced impressive sales figures for its Reinforcement Materials division, which specializes in the production of carbon black for rubber reinforcement. The division has witnessed a significant uptick in sales, primarily fueled by robust demand from European and Asian markets.
Despite a 4.6% year-on-year decline in total sales to 611millioninQ42024,thecompany′sEarningsBeforeInterest,Taxes,Depreciation,andAmortization(EBITDA)slightlyincreasedto147 million , marking a modest growth compared to the previous year.
In terms of sales volume, the quarter saw an overall increase of 1%. Notably, the Asia-Pacific region exhibited exceptional demand, with a 2% year-on-year growth. Europe, the Middle East, and Africa (EMEA) also recorded a 1% increase, while the Americas experienced a 1% decline.
According to AsiaMB’s understanding, Cabot attributes its revenue growth to higher sales volumes and favorable pricing and product mix in its 2024 customer agreements. However, these gains were partially offset by unfavorable regional mix and reduced energy center revenues.
Discussing contract negotiations for 2025, Cabot highlighted that the full implementation of sanctions on supplies from Russia and Belarus in 2024 prompted many customers to seek additional supply sources, boosting the company’s sales in Europe. Nevertheless, amid continued tire imports in Asia, sales in the Americas face challenges.
Sean Keohane, CEO and President of Cabot Corporation, stated that overall, global tire production and potential demand from automotive original equipment manufacturers (OEMs) are expected to remain relatively stable in 2025. In North America, the company’s contracted sales volumes are comparable to last year, but sales in South America have declined.
Looking ahead, Cabot anticipates a slight improvement in the Reinforcement Materials division’s earnings in the first quarter of fiscal 2025 compared to the final quarter of 2024. Sales volumes are expected to remain relatively stable, and with increased sales in Europe, the company expects a more favorable regional mix. However, due to the impact of the Chinese Lunar New Year holiday in late January, demand in Asia is projected to decline in the first quarter.