News from Notch Consulting, Inc.

January 24, 2012

Cabot introduces Transfinity masterbatches

Filed under: Carbon Black — Notch @ 12:44 pm

On January 9, 2012, Cabot Corp. announced the launch of Transfinity™ elastomer composites for vibration isolation components in the mining, defense, automotive and aerospace industries. Transfinity products, which are produced by the Cabot Elastomer Composites business, are composites made from elastomer latex, which is a liquid form of rubber, and reinforcing particles, such as carbon black.

Conti raises truck tire prices in US

Filed under: Tires — Notch @ 12:33 pm

From R&P News comes word that Continental Tire the Americas L.L.C. plans to raise prices Feb. 15 on all Continental-, General- and Ameri*Steel-brand truck tires in the U.S. by up to 9 percent. Conti cited the “continued escalation” of raw materials and energy costs associated with the production of radial truck tires for the need to raise prices. The increase will affect all replacement sales channels in the U.S., according to the Fort Mill-based tire maker.

The company last raised prices in the U.S. on truck tires in July 2011, by 11 percent. The latest hike is the fourth price increase in the past 13 months.

Cooper reaches tentative agreement at Texarkana

Filed under: Tires — Notch @ 12:21 pm

From the Toledo Blade comes word that Cooper Tire & Rubber has reached a tentative agreement with the union that represents its Texarkana, Arkansas tire plant, a union official in Texarkana said Friday morning.

David Beard, a spokesman for United Steel Workers Local 752L, said the two sides reached the tentative agreement late Thursday night. The previous contract between Cooper and Local 752 expired at 11:59 p.m. Thursday.

Mr. Beard said the proposal would be presented to the membership Wednesday. The vote is expected to take place Thursday.

Local 752L represents about 1,500 hourly workers.

Cooper’s plant in Findlay, Ohio has been on lock-out since just after Thanksgiving.

OMNOVA raises prices for SB latex

Filed under: Uncategorized — Notch @ 12:15 pm

On January 23, 2012, OMNOVA Solutions (Fairlawn, OH) announced a price increase of $0.12 per dry pound on styrene butadiene (SB) latex for carpet and related markets, effective February 18, 2012. This increase is driven by the escalation in raw material costs utilized to manufacture SB latex products and is in addition to previously announced increases.

Cabot completes sale of Supermetals business

Filed under: Carbon Black — Notch @ 12:12 pm

On January 23, 2012, Cabot Corporation announced it had closed on the sale of its Supermetals Business to Global Advanced Metals.

“We are pleased to announce that we have completed the sale of the Supermetals business to Global Advanced Metals,” said Patrick Prevost, Cabot president and chief executive officer. “This divestiture is an important step in Cabot’s transformation to becoming a leader in specialty chemicals and performance materials. The sale of the tantalum business at this attractive value will improve the stability of our earnings and will allow us to focus on existing and new growth initiatives as we remain committed to achieving our target of adjusted earnings per share of $4.50 in 2014.”

The sale resulted in an initial cash payment of $175 million. Additional cash consideration will total a minimum of $275 million, consisting of the remaining $215 million purchase price, a minimum of $11 million of payments based on the future performance of the business and approximately $50 million for the sale of excess inventory, to be paid within a two-year period. The transaction is estimated to result in a pre-tax gain of approximately $330 million, approximately $300 million of which is expected to be recorded during the second quarter of fiscal 2012 with the remainder recorded over the next two years. The Company expects to receive after-tax proceeds of approximately $430 million over the two year period. The assets involved in the transaction include facilities in Boyertown, Pa and Aizuwakamatsu, Japan. Cabot will maintain its mining operation in Manitoba, Canada where the company mines cesium for its Specialty Fluids Business and tantalum.

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