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CABOT ANNOUNCES SECOND QUARTER OPERATING RESULTS

 BOSTON, April 30 /PRNewswire/ -- Cabot Corporation (NYSE: CBT) today reported net income of $14.0 million, 70 cents per common share, for its second quarter ended March 31, 1993, compared with net income of $22.0 million, $1.15 per common share, in the same quarter a year ago. Net sales and other operating revenues fell slightly to $407.6 million from $417.9 million last year.
 For the six months ended March 31, 1993, Cabot reported net income of $25.9 million, $1.29 per common share, compared with $38.6 million, $2.01 per common share, last year. Net sales were essentially unchanged with $803.7 million vs. $802.7 million last year.
 Cabot's total operating profit for the quarter declined to $41.6 million from $57.6 million last year. Operating profit for the six month period just ended was $77.4 million vs. $100.3 million a year ago.
 Operating profit for the quarter in the company's specialty chemicals and materials group was $37.0 million compared to $45.8 million last year, reflecting decreased volumes in the company's European operations. Unfavorable European and Japanese performance was partially offset by improvements in business volumes and margins in North America.
 According to Samuel W. Bodman, Cabot's chairman and CEO, "The company's earnings continue to be adversely impacted by sluggish economic conditions in Europe. It is a fact of the carbon black business that profitability is very dependent on incremental sales and we have been affected by volume reduction in Europe. Therefore, we are in the process of looking closely at our European businesses for further cost reduction opportunities and structural realignments that may become necessary."
 Second quarter operating profit in Cabot's Energy Group was $4.6 million vs. $11.8 million last year. The company said its LNG business experienced moderately lower sales volumes and significantly lower margins during the recent winter season relative to last year. As noted previously, the company's LNG business has been adversely affected by a recent confluence of temporary and/or unusual industry conditions relating to both deregulation and supply, although not quite as seriously as earlier thought.
 Cabot Corporation is a Boston-based, Fortune 300 Company with operations in specialty chemicals and materials, and energy. The 111-year-old company has annual sales of $1.5 billion.
 CABOT CORPORATION
 Unaudited Summary Results of Operations
 (Dollars in millions, except per share amounts)
 Three Months Ended Six Months Ended
 3/31/93 3/31/92 3/31/93 3/31/92
 Sales:
 Specialty chemicals and
 materials $296.4 $298.4 $584.6 $570.2
 Energy 111.2 119.5 219.1 232.5
 Net sales $407.6 $417.9 $803.7 $802.7
 Operating Profit:
 Specialty chemicals and
 materials $37.0 $45.8 $66.6 $80.9
 Energy 4.6 11.8 10.8 19.4
 Total operating profit $41.6 $57.6 $77.4 $100.3
 Income applicable to
 primary common shares:
 Interest expense $(11.5) $(9.8) $(22.5) $(18.2)
 General corporate expenses (7.5) (7.2) (10.0) (7.6)
 Income before income taxes 22.6 40.6 44.9 74.5
 Provision for income taxes (9.4) (19.1) (18.4) (35.1)
 Equity in net income (loss)
 of affiliated companies 0.8 0.5 (0.6) (0.8)
 Net income 14.0 22.0 25.9 38.6
 Dividends on preferred
 stock (0.9) (0.9) (1.8) (1.8)
 Income applicable to
 primary common shares $13.1 $21.1 $24.1 $36.8
 Income per common share:
 Primary 70 cents 1.15 1.29 2.01
 Fully diluted 66 cents 1.07 1.22 1.87
 Average number of shares
 outstanding (000's):
 Primary 18,602 18,339 18,644 18,286
 Fully diluted 20,193 19,966 20,216 19,949
 Consolidated Financial Position
 (Dollars in thousands)
 March 31, 1993 Sept. 30, 1992
 (unaudited)
 Current assets:
 Cash and cash equivalents $30,083 $30,656
 Accounts and notes
 receivable 273,207 265,530
 Inventories 218,107 226,199
 Prepaid expenses 16,026 17,311
 Deferred income taxes 15,677 15,076
 Total current assets 553,100 554,772
 Current liabilities:
 Notes payable to banks 50,725 74,500
 Current portion of long-term
 debt 9,186 9,684
 Accounts payable and accrued
 liabilities 270,017 276,435
 U.S. and foreign income taxes 6,339 ---
 Total current liabilities 336,267 360,619
 Working capital 216,833 194,153
 Property, plant and
 equipment, at cost 1,229,719 1,274,656
 Accumulated depreciation,
 and amortization (576,628) (571,440)
 Net property, plant and
 equipment 653,091 703,216
 Investments 166,522 156,540
 Intangible assets, net of
 amortization 83,277 87,396
 Other assets 38,822 52,605
 Deferred income taxes (116,095) (119,917)
 Other deferred liabilities (81,120) (91,400)
 Total $961,330 $982,593
 Capitalization:
 Long-term debt $480,021 $479,882
 Minority interest 8,937 9,756
 Stockholders' equity 472,372 492,955
 Total capitalization $961,330 $982,593
 -0- 4/30/93
 /CONTACT: Kathryn I. Davis, director investor relations of Cabot Corporation, 617-342-6366/
 (CBT)


CO: Cabot Corporation ST: Massachusetts IN: CHM ENG SU: ERN

DD -- NE003 -- 3065 04/30/93 09:26 EDT
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Date:Apr 30, 1993
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