(RTTNews) - Wednesday, chemicals manufacturer Cabot Corp. (CBT: News ) slipped to a loss in the fourth quarter from a year-ago, primarily due to restructuring charges, lower volume of sales and higher inventory costs.

Cabot reported a fourth quarter net loss of $11 million, compared to a profit of $12 million in the year-ago period. On a per share basis, net loss was $0.17, compared to earnings of $0.18.

Adjusted earnings was $0.30 per share, excluding $0.47 per share on certain one-time items, primarily related to restructuring charges.

Analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net sales and other operating revenues for the quarter declined 20% to $610 million from $854 in the year-ago quarter due to lower sales volumes. Analysts expected the company to post revenue of $597.50 million.

Core Segment net sales dropped to $377 million from $553 million, primarily due to Rubber blacks net sales declining to $343 million from $505 million in the year-ago period.

Segment-wise, Performance Segment net sales decreased to $183 million from $237 million with lower sale of performance products and fumed metal oxides. The new business segment sales declined slightly to $19 million from $20 million, while the Specialty Fluids Segment sales decreased to $14 million from $19 million.
For the full year, the company reported a net loss of $77 million or $1.21 per share, compared to a profit of $86 million or $1.34 per share. Adjusted earnings was $0.16 per share, excluding $1.37 per share related to restructuring charges. Analysts expected a loss of $0.01 per share for the full-year.

Net sales and other operating revenues for the full year decreased to $2.24 billion from $3.19 billion in the year-ago period. Analysts expected revenue of $2.20 billion for the full year.

Profitability was also negatively affected by $60 million from high cost inventory. The company said its restructuring program was ahead of schedule to deliver in excess of $80 million of fixed cost savings in fiscal 2010. About 30% of the $80 million in savings was captured in fiscal 2009 and total cost to implement the plan has come down from original estimate of $150 million to approximately $115 million.

Cabot President and CEO Patrick Prevost said, "The volume improvements we experienced in the last two quarters of fiscal 2009 give us some optimism for the coming year. Although the progress has been very positive, a full recovery to pre-downturn levels will most likely occur at a moderate pace."

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