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CABOT ANNOUNCES THIRD QUARTER OPERATING RESULTS

 CABOT ANNOUNCES THIRD QUARTER OPERATING RESULTS
 BOSTON, July 27 /PRNewswire/ -- Cabot Corporation (NYSE: CBT) today


reported net income of $16.4 million (84 cents per common share) for its third quarter ended June 30, 1992, compared with net income of $6.4 million (30 cents per common share) in the same quarter a year ago. Net sales and other operating revenues for Cabot's continuing operations rose 7 percent to $371.0 million from $347.2 million last year.
 For the nine months ended June 30, 1992, Cabot reported income of $55.1 million ($2.85 per common share) from its continuing operations, compared with $35.8 million ($1.48 per common share) last year. Net sales for continuing operations rose modestly to $1,173.7 million from $1,158.4 million last year.
 Cabot continued to post better earnings despite lackluster improvement in the company's operating environment worldwide. Cabot Chairman Samuel W. Bodman commented, "The strong results for the quarter continue to be driven by our efforts to manage our costs better -- essentially we have been doing our best to manage our own destiny. For most of this year we have benefited from some improvement in the business climate, but the improvement has been sporadic and unpredictable -- up some months, down others. Convincing evidence of meaningful and sustainable improvement in the global economy is still absent."
 Cabot's operating results include two unusual items which were essentially offsetting. Cabot benefited from a $3 million after-tax gain from the redemption of Maple Corporation preferred stock, warrants and subordinated notes. The securities were redeemed when American Oil and Gas Corporation (NYSE: AOG) acquired the assets of Maple. The gain was offset by a $3.2 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. Commenting on the difficulties faced this year by the company's joint venture in Mexico Bodman emphasized, "despite the current operating environment, we are confident our investment in Mexico will pay important future dividends."
 Cabot's total operating profit from continuing operations in the third quarter increased $20.6 million to $43.8 million from $23.2 million last year. Operating profit in the company's Specialty Chemicals and Materials Group rose 73 percent to $44.1 million from $25.5 million reflecting better volumes and cost reductions -- including meaningful reductions in plant operating costs. Reflecting somewhat better operating conditions, Cabot's Energy Group reported a slight operating loss of $0.3 million for the historically weak third quarter. Last year, the Energy Group reported an operating loss of $2.3 million in the quarter.
 Cabot Corporation is a Boston-based, Fortune 300 Company with operations in specialty chemicals and materials, and energy.
 CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES
 Summary of Results of Operations
 (dollars in thousands)
 Three months ended June 30 1992 1991
 Net sales and other operating revenues $371,043 $347,178
 Income before income taxes 32,064 9,378
 Provision for U.S. and foreign income taxes (15,109) (4,498)
 Equity in net income of affiliated companies (515) 1,559
 Net income 16,440 6,439
 Preferred dividends (929) (948)
 Income applicable to primary common shares $15,511 $5,491
 Income per primary common share 84 cents 30 cents
 Average number of shares outstanding (000s) 18,473 18,175
 Nine months ended June 30 1992 1991
 Net sales and other operating revenues $1,173,738 $1,158,393
 Income from continuing operations 106,615 57,967
 before income taxes
 Provision for U.S. and foreign income taxes (50,181) (27,825)
 Equity in net income (loss) (1,362) 5,638
 of affiliated companies
 Income from continuing operations 55,072 35,780
 Income from discontinued operations --- 9,492
 Gain on disposal of discontinued operations --- 84,263
 Net income 55,072 129,535
 Preferred dividends (2,788) (2,844)
 Income applicable to primary common shares $52,284 $126,691
 Income per common share:
 Continuing operations $2.85 $1.48
 Discontinued operations --- 42 cents
 Gain on disposal of discontinued operations --- $3.78
 Income per primary common share $2.85 $5.68
 Average number of shares outstanding (000s) 18,350 22,319
 -0- 7/27/92
 /CONTACT: J. Scott Esler, 617-342-6240, or Kathryn Davis, 617-342-6366, investor relations for Cabot Corporation/
 (CBT) CO: Cabot Corporation ST: Massachusetts IN: CHM SU: ERN


CH -- NE008 -- 3452 07/27/92 11:05 EDT
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