Cabot Earnings Decline

The company's shares fall 6%.
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Cabot

(CBT) - Get Report

, a specialty chemicals and materials company, said its third-quarter earnings fell 4%, hurt by higher costs.

The company earned $24 million, or 37 cents a share, in the quarter, compared with $25 million, or 39 cents a share, a year ago. Third-quarter results included a charge of 2 cents a share. Third-quarter revenue rose 22.2% to $666 million.

Looking forward, the company expects its full-year performance to be at the lower end of its earlier forecast. "In particular, despite our carbon black business having strong volumes, our inability to return to a more historic margin level unfavorably impacted performance," the Boston-based company said.

"In addition, we had three cost issues during the quarter, higher utility costs, higher maintenance costs at Cabot Japan, and our aggressive initiative to reduce inventory levels, thereby reducing production levels, resulting in higher fixed costs per unit."

Shares of Cabot were falling 6.2% to $32.02.

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