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Cabot Corporation (CBT) Unveils High Purity Charcoal Powder

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Cabot Corporation (CBT - Free Report) introduced Norit SX Super S, a high purity charcoal powder that meets industry polycyclic aromatic hydrocarbons (PAH) specifications for use by the cosmetics industry.
 
High purity charcoal demand is rising in consumer products such as shampoos, conditioners, toothpaste and skin cleansers due to its abrasive, adsorptive and opacifying properties. Cabot’s charcoal powders deliver exceptional performance in various consumer applications.
 
Notably, Cabot’s new Norit SX Super S charcoal powder is an ultra high purity grade produced by using high purity sustainable feedstocks, activation methods and washing steps. Additionally, as a quality assurance measure, the company tops stringent industry standards along with purity testing of finished-product.

Cabot will showcase its Norit SX Super S charcoal powder at the CPhI Worldwide 2018 exhibition to be held in Madrid, Spain, from Oct 9 to 11. Other products to be highlighted include activated carbon used for the purification of active pharmaceutical ingredients, medicinal treatment of gastro-intestinal issues and acute poisoning, and efficient and economical catalyst support.
 
In a year’s time, shares of Cabot have gained around 13.6% against the industry’s decline of 4.6%.


 

Cabot, during its fiscal third-quarter call, said that it expects the Reinforcement Materials segment to continue with its strong performance in the fourth quarter on solid operational and commercial execution. For the Performance Chemicals segment, it expects to maintain margins while driving volume growth in specialty Carbons and Formulations.

The Reinforcement Materials segment is benefiting from strong commercial execution that is driving volumes and margin growth. The Performance Chemicals unit is also gaining from the favorable impact of price increase actions. Notably, in the third quarter, sales at both the segments rose year over year.

The company is taking appropriate pricing actions to offset feedstock cost inflation. It is also committed toward driving product mix at Performance Chemicals through the launch of products and applications.

Cabot Corporation Price and Consensus

 

Zacks Rank & Stocks to Consider

Cabot is a Zacks Rank #3 (Hold) stock.

Some better-ranked companies in the basic materials space are ArcelorMittal (MT - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

ArcelorMittal has an expected long-term earnings growth rate of 4.8% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 21.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have rallied 52.9% in the past year.

Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have risen 11.5% in a year’s time.

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