Cabot Supermetals Business Grows 31% In June 2010 Quarter

Profitability in the Supermetals Business (which sells capacitor grade tantalum metal powder and wire for anode applications) increased by $11 million compared to the same quarter of fiscal 2009. The improvement was driven by stronger demand from ongoing recovery in the electronics industry that resulted in higher volumes, lower costs from actions taken over the past year to reposition the business and a benefit from lower ore costs associated with LIFO accounting. Sequentially, profit improved by $11 million due primarily to higher volumes associated with the electronics market recovery, higher prices, including an improved product mix, and lower operating costs. During the third quarter of fiscal 2010, the Supermetals Business generated $18 million of cash from improved operating results and reduced working capital.

Total revenues in the Cabot Supermetal’s Business were $47 million in the June 2010 quarter, up 31% from the March quarter when sales were only $36 million USD. This means that capacitor manufacturers had increased their demand and that price increases for raw materials had begun to take hold.

Cabot Supermetals Division Revenues By Quarter

Cabot Supermetals Division Revenues By Quarter


Cabot Corporation Supermetals Business sells capacitor grade tantalum metal powder, and would be the
largest vendor of such powders in the world. We can see from the chart above that Cabot has returned to sales levels that are consistent to pre-downturn levels. Cabot is prepared for any upturn in the industry, and is well positioned to increase market share as the tantalite ore supply becomes more difficult to manage in 2011. Based upon the tightening supply chain for tantalum, and Cabot’s large reserve of tantalite, the Supermetals Business should fare reasonably well in the September quarter.

Additional Resources: (1) Tantalum Capacitors: World Markets, Technologies & Opportunities: 2010-2015 ISBN # 1-893211-11-8 (© April 2010) (2) TANTALUM: Global Market Outlook: 2008-2013 ISBN # 0-929717-81-3 (2008)

AVX and Cabot Announce Litigation Settlement on Tantalum

AVX Corporation (NYSE: AVX) and Cabot Corporation (NYSE: CBT) announced the resolution of all outstanding litigation between the parties relating to the supply of tantalum by Cabot to AVX. The terms of the settlement are confidential.

According to Kurt Cummings, Vice President and Chief Financial Officer and spokesperson for AVX, “AVX is pleased with the complete resolution of these disputes which will allow both parties to focus on business challenges in the current economy. We expect that this settlement will allow both companies to forge a stronger relationship in the future.” According to Eduardo E. Cordeiro, Cabot’s Executive Vice President and Chief Financial Officer, “Cabot has always viewed AVX as an important customer and believes that the resolution of these matters is in the best interest of both parties and consistent with their long term economic interests.”

Additional Resources: (1) Tantalum Capacitors: World Markets, Technologies & Opportunities: 2010-2015 ISBN # 1-893211-11-8 (© April 2010) (2) TANTALUM: Global Market Outlook: 2008-2013 ISBN # 0-929717-81-3 (2008)

H.C. Starck Announces Price Increases For Materials, Including Tantalum

GOSLAR, GERMANY—The international H.C. Starck Group has announced a further price increase for substantial parts of its product portfolio. The reason is increases in costs for energy, as well as for raw and auxiliary materials, and production supplies. “These are adjustments that may even reach high double- digit percentages in some of our main product segments,” said Dr. Heumüller, CEO of the German parent company. “We are working closely with our customers to look for ways to pass on these rising costs and the inevitable price increases in the entire added-value chain.” In recent months, H.C. Starck has completed a successful performance improvement program and is positioned competitively in terms of production. “The anticipated price increases are not alone an H.C. Starck problem, but an industry problem. They are affecting all suppliers equally. Everybody will be forced to translate these unexpected cost increases into higher prices,” said Dr. Heumüller. The H.C. Starck Group is currently informing customers about the price increase. Provided that no contract periods have to be taken into account, the new prices will generally be effective as of November 1, 2008.

Readers Who Viewed This Article Also Went Here: (1) Tantalum Capacitors: World Markets, Technologies & Opportunities: 2010-2015 ISBN # 1-893211-11-8 (© April 2010) (2) TANTALUM: Global Market Outlook: 2008-2013 ISBN # 0-929717-81-3 (2008)