Chris Perrella's questions to Cabot Corp (CBT) leadership • Q4 2024
Question
Chris Perrella, on behalf of Joshua Spector at UBS, asked about Reinforcement Materials demand trends for the upcoming quarter, the expected volume cadence for the year, the impact of Asian tire imports into the U.S., and the drivers for the fiscal year's increased CapEx.
Answer
CEO and President Sean Keohane confirmed a solid October volume recovery in Mexico and projected modest, low-single-digit global tire production growth for 2025. He noted that while high levels of Asian tire imports are impacting the Americas, there is pushback from recent tariffs and antidumping duties. For CapEx, Keohane explained the expected range of $250M-$300M is driven by the completion of an air pollution control project in Louisiana, a new production unit in Indonesia, and investments in battery growth projects.