Exhibit 99.2
CABOT CORPORATION
FIRST QUARTER FISCAL YEAR 2007
SUPPLEMENTAL BUSINESS INFORMATION
(Unaudited)
Business Segment Sales Analysis
Key factors impacting net sales for each business during the first quarter of 2007 were as follows:
Carbon Black Business
Impact on Sales
(Dollars in millions) | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Prices | | 36 | | (2) | |
Foreign currency translation | | 14 | | 2 | |
Volumes | | 8 | | (31) | |
Metal Oxides Business
Impact on Sales
(Dollars in millions) | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Volumes | | 8 | | (4) | |
Foreign currency translation | | 2 | | — | |
Supermetals Business
Impact on Sales
(Dollars in millions) | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Volumes | | (6) | | 7 | |
Prices | | (10) | | 5 | |
Business Segment Profitability Analysis
Key factors impacting PBT for each business during the first quarter of 2007 were as follows:
Carbon Black Business
Impact on PBT
(Dollars in millions) | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Price / mix | | 35 | | 4 | |
Volumes | | 4 | | (15) | |
Raw materials | | — | | 23 | |
Fixed costs | | (4) | | 5 | |
Inventory change and other inventory charges | | (8) | | 1 | |
Metal Oxides Business
Impact on PBT
(Dollars in millions) | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Volumes | | 5 | | (3) | |
Raw materials | | 4 | | — | |
Fixed costs | | (2) | | 1 | |
Supermetals Business
Impact on PBT
(Dollars in millions) | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Fixed costs | | 17 | | 3 | |
Selling, technical and administrative expenses | | 4 | | (1) | |
Volumes | | (4) | | 4 | |
Price / mix | | (10) | | 5 | |
Raw materials | | (1) | | (2) | |
Business Segment Volume Changes
Business Segment | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
Carbon Black Business | | | | | |
Rubber Blacks | | 8% | | (5%) | |
Performance Products | | (4%) | | (10%) | |
Inkjet Colorants | | (9%) | | (18%) | |
Metal Oxides Business | | | | | |
Fumed Metal Oxides | | 13% | | (6%) | |
Supermetals Business | | (6%) | | 11% | |
Rubber Blacks Regional Volume Changes
Region | | Q1 2007 vs Q1 2006 | | Q1 2007 vs Q4 2006 | |
North America | | (23%) | | (21%) | |
South America | | 11% | | (5%) | |
Europe | | 13% | | 2% | |
Asia Pacific | | 18% | | (6%) | |
China | | 34% | | 9% | |
Capital Expenditures
Cabot invested approximately $26 million in capital expenditures during the first quarter of fiscal year 2007 compared to $49 million in the same period of fiscal year 2006.
Share Repurchases
There were no open market purchases of Cabot common stock during the quarter.
Working Capital
During the first quarter of 2007 net working capital increased by $32 million in constant dollars ($42 million at actual exchange rates). The increase in net working capital was driven by a decrease in accounts payable resulting from the payment of certain year end accruals as well as lower feedstock costs.
Effective Tax Rate
The Company’s effective tax rate for net income was 25% for the first quarter of 2007.
