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CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS

 CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS
 BOSTON, Jan. 27 /PRNewswire/ -- Cabot Corporation (NYSE: CBT)


today reported income of $16.6 million, or 86 cents per common share, from its continuing operations for its first quarter ended Dec. 31, 1991, compared with income of $13.8 million, or 52 cents per common share, in the same quarter a year ago. Net sales and other operating revenues from Cabot's continuing operations were $384.8 million vs. $400.4 million last year.
 Commenting on the higher earnings, Cabot Chairman Samuel W. Bodman, said, "The forces behind better operating results in both our Specialty Chemicals and Energy segments in the face of a difficult economic environment are largely internal. By controlling and reducing expenses in many of our operations, we were able to offset slight volume and margin declines caused by the recession. Unfortunately, we, like others, have simply not witnessed many signs of meaningful economic recovery."
 In addition to the better operating profits, Bodman said the company's earnings benefited from a $1.8 million, or 10 cents per share, after-tax gain associated with the early redemption of the remaining 10,000 shares of participating preferred stock received when Cabot merged its natural gas transmission business with American Oil and Gas Corporation (AMEX: AOG). Cabot also benefited from a $1.4 million, or 8 cents per share, after-tax gain from the sale of a small minority interest in a business located in Portugal. These two gains were offset by a $3 million after-tax loss applicable to the company's minority interest in a carbon black joint venture in Mexico. The loss resulted from adverse regional market conditions and charges taken to improve the cost structure of the operation. Bodman noted that in last year's first quarter the company also recorded a gain when American Oil and Gas Corporation redeemed 5,000 shares of the participating preferred stock.
 The significant improvement in earnings per share reflects the leverage created when the company acquired 6.4 million common shares, or 26 percent of its outstanding shares, in a unique exchange offer completed last March.
 Cabot's total operating profit from continuing operations rose 17 percent to $42.2 million from $36.0 million last year. Operating profit in the company's Specialty Chemicals and Materials Group increased to $34.6 million from $31.9 million reflecting the benefit of cost reductions achieved. First quarter operating profit in Cabot's Energy Group rose $3.5 million to $7.6 million due principally to more normal operating conditions for the company's LNG business.
 Cabot Corporation is a Boston-based, Fortune 300 company with operations in specialty chemicals and materials, and energy. The 110-year-old company has annual sales of $1.5 billion.
 CABOT CORPORATIONS AND CONSOLIDATED SUBSIDIARIES
 Summary of Results of Operations
 (thousands of dollars)
 Three months ended Dec. 31 1991 1990
 Net sales and other operating
 revenues $384,834 $400,418
 Income from continuing operations
 before income taxes 33,874 20,325
 Provision for U.S. & foreign
 income taxes (15,927) (10,278)
 Equity in net income (loss)
 of affiliated companies (1,302) 3,748
 Income from continuing operations 16,645 13,795
 Income from discontinued operations --- 5,509
 Net income 16,645 19,304
 Preferred dividends (930) (949)
 Income applicable to primary
 common shares $15,715 $18,355
 Income per common share:
 Continuing operations 86 cents 52 cents
 Discontinued operations --- 23 cents
 Income per primary common share 86 cents 75 cents
 Average number of shares
 outstanding (000s) 18,210 24,496
 -0- 1/27/92
 /CONTACT: J. Scott Esler, director of investor relations, of Cabot Corp., 617-342-6240/
 (CBT) CO: Cabot Corporation ST: Massachusetts IN: CHM SU: ERN


SH -- NE009 -- 3644 01/27/92 10:39 EST
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Date:Jan 27, 1992
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