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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 24, 2007

CABOT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction of Incorporation)

1-5667		04-2271897
(Commission File Number)		(IRS Employer Identification No.)

Two Seaport Lane, Suite 1300, Boston, Massachusetts		02210-2019
(Address of Principal Executive Offices)		(Zip Code)

(617) 345-0100
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 24, 2007, Cabot Corporation issued a press release announcing its operating results for the fiscal quarter ended December 31, 2006. A copy of the press release, together with supplemental business information for the first quarter of Cabot’s 2007 fiscal year, are furnished herewith as Exhibits 99.1 and 99.2.

Item 9.01 Financial Statements and Exhibits.

99.1 Press release issued by Cabot Corporation on January 24, 2007

99.2 First Quarter Fiscal Year 2007 Supplemental Business Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CABOT CORPORATION

	By:	/s/ James P. Kelly
	Name: James P. Kelly
	Title: Controller

Date: January 24, 2007

EXHIBIT INDEX

Exhibit Number		Title

99.1		Press release issued by Cabot Corporation on January 24, 2007
99.2		First Quarter Fiscal Year 2007 Supplemental Business Information

Exhibit 99.1

	Contact:	Susannah R. Robinson
		Director, Investor Relations
		(617) 342-6129

CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS

BOSTON, MA (January 24, 2007) — Cabot Corporation (NYSE:CBT) today announced net income of $54 million ($0.79 per diluted common share after-tax) for the first quarter of 2007. This is compared to net income of $24 million ($0.35 per diluted common share after-tax) for the first quarter of fiscal 2006. Details of certain items included in net income are provided in the accompanying financial tables.

In commenting on the results, Kennett F. Burnes, Cabot’s Chairman and CEO, said, “We are very pleased with our first quarter financial results. They are strong results, driven in part by our continued attention to manufacturing efficiency, cost minimization and profitable growth in emerging markets. In addition, for the first time in nearly two years we experienced relief from carbon black feedstock costs, which positively impacted performance in both rubber blacks and performance products. The fumed silica product line experienced significant volume growth in all market segments, high plant utilization and lower per unit manufacturing costs due to its expansion in China. The Supermetals Business had a strong quarter primarily related to the completion of the last of the significant long term supply contracts. Additionally, high fluid utilization in the North Sea led to increased profitability in the Specialty Fluids Business during the quarter.”

Product Line Performance

During the quarter, per unit margins in rubber blacks and performance products increased due to price increases and lower feedstock costs. Results reflected the favorable impact of declining feedstock costs on contracted rubber blacks volumes and the immediate recognition of lower feedstock

costs in North America. In rubber blacks, volumes were 8% higher than in the first quarter of 2006 despite lower volumes in North America resulting from a strike at our customer, The Goodyear Tire and Rubber Company, which has since been settled. In performance products, volumes decreased by 4% when compared to the first quarter of 2006 as many of our plastics customers delayed orders to take advantage of declining polymer prices. Sequentially, volumes in rubber blacks and performance products were lower due to the impact of the Goodyear strike and market seasonality, respectively, but unit margin increases and lower manufacturing conversion costs led to stronger performance in both product lines.

The inkjet colorants product line had weaker performance compared to both the first and fourth quarters of 2006. As anticipated, the product line experienced lower volumes due to softness in the aftermarket segment and an expected inventory drawdown by one of our key OEM customers, leading to lower sales volumes. Volumes decreased by 9% compared to the same quarter a year ago and by 18% compared to the fourth quarter of fiscal year 2006. Additionally, higher fixed costs per unit due to lower production levels and increased costs associated with our new production line unfavorably impacted the profitability of the product line both year over year and sequentially. During the quarter, the product line commenced commercial sales of products for use in the high-speed inkjet printing market, in anticipation of an OEM product launch in the spring. To that end, the product line is once again in the process of substantially expanding capacity to serve this market.

Fumed silica volumes grew by 13% when compared to the first quarter of 2006 due to strength in all market segments. Compared to the same period in 2006, profitability improved in the product line with the successful startup of our new, lower cost, fumed silica facility in China, lower hydrogen prices and several one-time expenses in 2006 that did not recur in 2007. Volumes decreased by 6% when compared to the fourth quarter of

2006, largely due to seasonality. The impact of lower volumes in all market segments was more than offset by lower fixed and selling, technical and administrative (“STA”) costs, leading to a slight increase in sequential profitability.

Profitability in the Supermetals Business increased when compared to both the first and fourth quarters of 2006. When compared to the same period of 2006, the Business experienced lower contracted volumes and lower pricing due to the continued transition from contracted to market based sales, partially offset by higher market volumes. Despite these changes, profitability improved versus the same quarter in the prior year as manufacturing and STA expenses were significantly reduced and certain unusual manufacturing related costs did not recur in the first quarter of 2007. Sequentially, profitability increased due to higher contracted volumes related to the completion of the last significant long term supply contract, which more than offset higher ore costs.

The Specialty Fluids Business had a strong quarter, with increases in profitability when compared to both the first and fourth quarters of 2006. An increase in rental days and volume of fluid sold combined to improve fluid utilization rates both year over year and sequentially.

Outlook

With respect to the future, Burnes said, “We anticipate overall demand in our core businesses to remain solid, particularly in emerging regions where our new capacity is concentrated. Specifically, carbon black demand appears strong in all regions outside of North America, we anticipate that fumed metal oxides will continue its trend of volume growth and strong plant utilization for at least the next six months, and we remain optimistic about the continuation of strong market volumes in the Supermetals Business. In inkjet colorants we believe we will return to a more normal level of growth in the small office home office (“SOHO”) market through the remainder of the year and we remain optimistic regarding the prospects for growth in the use of our products in the high-speed inkjet market. In Specialty

Fluids, we continue to see gradual progress in the acceptance of formates for use in wells outside of the North Sea and remain optimistic about the prospects for this Business. However, we remain concerned regarding the balance of capacity and demand in the North American carbon black market, and the impact that this excess capacity will have on our margins.

Some of the benefits we experienced during the first quarter, however, are unlikely to be sustained over the full year. The positive impact of declining feedstock costs on our rubber blacks contracted business will be weaker unless carbon black feedstock prices continue to fall. In addition, the last of our significant long term supply contracts in the Supermetals Business expired in December of 2006. In aggregate, we believe that these positively impacted our earnings for the first quarter by $0.20-$0.25 per diluted common share after-tax.”

For those interested in more detailed information regarding Cabot’s first quarter fiscal year 2007 results, please see the Supplemental Business Information available on the Company’s website in the Investor Relations section: http://investor.cabot-corp.com. Further details concerning certain items are included in Exhibit I of the press release.

Included above are forward-looking statements relating to management’s expectations regarding demand for our products; our overall business performance and prospects; growth of markets for inkjet colorants; our ability to replace lost contract volumes with open market volumes in the Supermetals Business and maintain that Business’s profitability; utilization of new capacity for fumed metal oxides; acceptance of our cesium formate drilling fluids outside of the North Sea; carbon black feedstock prices; and the balance of capacity and demand in the North American carbon black market. The following are some of the factors that could cause Cabot’s actual results to differ materially from those expressed in the forward-looking statements: changes in feedstock costs; lower than expected demand for our products; our inability to maintain cost savings from restructuring activities; our inability to maintain and grow our position in the small office, home office printing market and to participate in the growth in emerging inkjet applications; unexpected delays in drilling operations at wells recently awarded to the Specialty Fluids Business and the success of this Business in gaining wider acceptance by the energy industry of cesium formate as a drilling fluid and to penetrate new markets (including development of the required logistics to reach remote markets); and the timely customer acceptance of products from recent capacity expansion

projects. Other factors and risks are discussed in the Company’s 2006 Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Cabot Corporation is a global specialty chemicals and materials company headquartered in Boston, MA. Cabot’s major products are carbon black, fumed silica, inkjet colorants, capacitor materials, and cesium formate drilling fluids.

First Quarter Earnings Announcement, Fiscal 2007

CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

Periods ended December 31	Three Months
Dollars in millions, except per share amounts (unaudited)	2006			2005

Net sales and other operating revenues	$	655		$	587
Cost of sales	506			481
Gross profit	149			106

Selling and administrative expenses	54			58
Research and technical expenses	15			13
Income from operations	80			35

Other income and expense
Interest and dividend income	2			2
Interest expense	(9		)	(6		)
Other income (expense)	2			(4		)
Total other income and expense	(5		)	(8		)

Income from continuing operations before income taxes	75			27

Provision for income taxes	(19		)	(4		)
Equity in net income of affiliated companies, net of tax	3			3
Minority interest in net income, net of tax	(5		)	(4		)

Income from continuing operations	54			22

Cumulative effect of accounting change, net of tax	—			2

Net income	54			24
Dividends on preferred stock	—			(1		)
Income available to common shares	$	54		$	23

Diluted earnings per share of common stock
Income from continuing operations	$	0.79		$	0.31
Cumulative effect of accounting change	—			0.04
Net income	$	0.79		$	0.35

Weighted average common shares outstanding
Diluted	69			68

First Quarter Earnings Announcement, Fiscal 2007

CABOT CORPORATION SUMMARY RESULTS BY SEGMENTS

Periods ended December 31	Three Months
Dollars in millions, except per share amounts (unaudited)	2006			2005

SALES

Carbon Black Business(A)	$	485		$	419
Rubber blacks	351			298
Performance products	123			109
Inkjet colorants	10			11
Superior MicroPowders	1			1
Metal Oxides Business	65			57
Fumed metal oxides	65			57
Aerogel	—			—
Supermetals Business	77			93
Specialty Fluids Business	16			10
Segment sales	643			579
Unallocated and other(B)	12			8
Net sales and other operating revenues	$	655		$	587

SEGMENT PROFIT

Carbon Black Business	$	54		$	21
Metal Oxides Business	9			2
Supermetals Business	16			11
Specialty Fluids Business	8			4
Total Segment Profit(C)	87			38

Interest expense	(9		)	(6		)
General unallocated expense(D)	—			(2		)
Less: Equity in net income of affiliated companies, net of tax	(3		)	(3		)
Income from continuing operations before income taxes	75			27
Provision for income taxes	(19		)	(4		)
Equity in net income of affiliated companies, net of tax	3			3
Minority interest in net income, net of tax	(5		)	(4		)
Income from continuing operations	54			22
Cumulative effect of accounting change, net of tax(E)	—			2
Net income	54			24
Dividends on preferred stock	—			(1		)
Income available to common shares	$	54		$	23

Diluted earnings per share of common stock
Income from continuing operations	$	0.79		$	0.31
Cumulative effect of accounting change(E)	—			0.04
Net income	$	0.79		$	0.35

Weighted average common shares outstanding
Diluted	69			68

(A) Segment sales for certain operating segments within the Carbon Black Business include 100% of sales of one equity affiliate at market-based prices.

(B) Unallocated and other reflects an elimination for sales of one equity affiliate offset by royalties paid by equity affiliates and external shipping and handling fees.

(C) Segment profit is a measure used by Cabot’s operating decision-makers to measure consolidated operating results and assess segment performance. Segment profit includes equity in net income of affiliated companies and excludes royalties paid by equity affiliates, minority interest and allocated corporate costs.

(D) General unallocated expense includes foreign currency transaction gains (losses), interest income, dividend income, and the certain items listed in Exhibit I.

(E) Cumulative benefit of accounting change for implementation of FAS 123(R).

First Quarter Earnings Announcement, Fiscal 2007

CABOT CORPORATION CONDENSED CONSOLIDATED FINANCIAL POSITION

	December 31,			September 30,
Dollars in millions, except share and per share amounts	2006			2006
	(unaudited)			(audited)

Current assets:

Cash and cash equivalents	$	183		$	189
Short-term marketable securities	31			1
Accounts and notes receivable, net of reserve for doubtful accounts of $7 and $6	538			534
Inventories:
Raw materials	124			131
Work in process	106			109
Finished goods	153			139
Other	44			41
Total inventories	427			420
Prepaid expenses and other current assets	93			75
Deferred income taxes	35			36
Total current assets	1,307			1,255

Investments:
Equity affiliates	59			59
Long-term marketable securities and cost investments	3			3
Total investments	62			62

Property, plant and equipment	2,584			2,531
Accumulated depreciation and amortization	(1,620		)	(1,567		)
Net property, plant and equipment	964			964

Other assets:
Goodwill	32			31
Intangible assets, net of accumulated amortization of $10 and $10	4			5
Assets held for rent	40			40
Deferred income taxes	99			100
Other assets	82			77
Total other assets	257			253

Total assets	$	2,590		$	2,534

First Quarter Earnings Announcement, Fiscal 2007

CABOT CORPORATION CONDENSED CONSOLIDATED FINANCIAL POSITION

	December 31,			September 30,
Dollars in millions, except share and per share amounts	2006			2006
	(unaudited)			(audited)

Current liabilities:

Notes payable to banks	$	69		$	58
Accounts payable and accrued liabilities	355			384
Income taxes payable	39			27
Deferred income taxes	2			2
Current portion of long-term debt	48			34
Total current liabilities	513			505

Long-term debt	437			459
Deferred income taxes	20			20
Other liabilities	287			286

Minority interest	72			68

Stockholders’ equity:
Preferred stock:
Authorized: 2,000,000 shares of $1 par value
Series B ESOP Convertible Preferred Stock 7.75% Cumulative,
Authorized: 200,000 shares
Issued and outstanding: 34,714 and 38,734 shares (aggregate redemption value of $35 and $39)	52			56
Less cost of 17,161 shares of preferred treasury stock	(38		)	(38		)
Common stock:
Authorized: 200,000,000 shares of $1 par value
Issued and outstanding: 64,207,914 and 63,432,651	64			64
Less cost of 146,389 shares of common treasury stock	(5		)	(5		)
Additional paid-in capital	23			7
Retained earnings	1,202			1,160
Deferred employee benefits	(37		)	(38		)
Notes receivable for restricted stock	(19		)	(20		)
Accumulated other comprehensive income	19			10
Total stockholders’ equity	1,261			1,196

Total liabilities and stockholders’ equity	$	2,590		$	2,534

CABOT CORPORATION

	Fiscal 2006															Fiscal 2007
In millions,
except per share amounts (unaudited)	Dec. Q.			Mar. Q.			June Q.			Sept. Q.			FY			Dec. Q.			Mar. Q.	June Q.	Sept. Q.	FY

Sales
Carbon Black Business(A)	$	419		$	476		$	514		$	508		$	1,917		$	485
Rubber blacks	298			346			367			367			1,378			351
Performance products	109			117			134			128			488			123
Inkjet colorants	11			12			12			12			47			10
Superior MicroPowders	1			1			1			1			4			1
Metal Oxides Business	57			62			66			69			254			65
Fumed metal oxides	57			62			65			69			253			65
Aerogel	—			—			1			—			1			—
Supermetals Business	93			67			66			66			292			77
Specialty Fluids Business	10			11			12			11			44			16
Segment Sales	579			616			658			654			2,507			643
Unallocated and other(B)	8			11			8			9			36			12

Net sales and other operating revenues	$	587		$	627		$	666		$	663		$	2,543		$	655

Segment Profit
Carbon Black Business(C)	$	21		$	26		$	23		$	31		$	101		$	54
Metal Oxides Business(C)	2			5			6			9			22			9
Supermetals Business	11			12			9			9			41			16
Specialty Fluids	4			4			5			3			16			8
Total Segment Profit(D)	38			47			43			52			180			87

Income from operations
Interest expense	(6		)	(7		)	(6		)	(8		)	(27		)	(9		)
General unallocated expense(E)	(2		)	(24		)	(2		)	(16		)	(44		)	—
Less: Equity in net income of affiliated companies, net of tax	(3		)	(4		)	(1		)	(4		)	(12		)	(3		)

Income from continuing operations before income taxes	27			12			34			24			97			75
(Provision) benefit for income taxes	(4		)	(1		)	(8		)	4			(9		)	(19		)
Equity in net income of affiliated companies, net of tax	3			4			1			4			12			3
Minority interest in net income, net of tax	(4		)	(3		)	(2		)	(3		)	(12		)	(5		)

Net income from continuing operations	22			12			25			29			88			54
Cumulative effect of accounting changes, net of taxes(F)	2			—			—			(4		)	(2		)	—
Discontinued operations(G)	—			—			—			2			2			—

Net income	24			12			25			27			88			54
Dividends on preferred stock, net of tax benefit	(1		)	—			(1		)	—			(2		)	—

Net income available to common shares	$	23		$	12		$	24		$	27		$	86		$	54

Net income per common share
Net income from continuing operations	$	0.31		$	0.17		$	0.37		$	0.43		$	1.28		$	0.79
Cumulative effects of accounting changes(F)	0.04			—			—			(0.07		)	(0.03		)	—
Discontinued operations(G)	—			—			—			0.03			0.03			—
Net income	$	0.35		$	0.17		$	0.37		$	0.39		$	1.28		$	0.79
Weighted average common shares outstanding
Diluted	68			69			69			68			68			69

(A) Segment sales for certain operating segments within the Carbon Black Business include 100% of sales of one equity affiliate at market-based prices.

(B) Unallocated and other reflects an elimination for sales for one equity affiliate offset by royalties paid by equity affiliates and external shipping and handling fees.

(C) The fourth quarter and fiscal year end 2006 amounts include a reclassification of $4 million of profit from the Carbon Black segment to the Metal Oxides segment. This reclassification was deemed to be immaterial for purposes of the annual segment reporting in the September 30, 2006 consolidated financial statements.

(D) Segment profit is a measure used by Cabot’s operating decision-makers to measure consolidated operating results and assess segment performance. Segment profit includes equity in net income of affiliated companies, royalties paid by equity affiliates, minority interest and allocated corporate costs.

(E) General unallocated expense includes foreign currency transaction gains (losses), interest income, dividend income and certain items listed in Exhibit I. These amounts also include the $27 million settlement payment to the Sons of Gwalia in the second quarter of 2006.

(F) Amounts relate to the cumulative benefit resulting from the adoption of FAS 123(R) in the first quarter of 2006 of $0.04 and the cumulative expense resulting from the adoption of FIN 47 in the fourth quarter of 2006 of ($0.07).

(G) Amount relates to a favorable tax settlement recognized during the period from our discontinued liquified natural gas business.

First Quarter Earnings Announcement, Fiscal 2007

CABOT CORPORATION CERTAIN ITEMS - Exhibit I

Periods ended December 31	Three Months
Dollars in millions, except per share amounts (unaudited)	2006			2006			2005			2005
	$			per share(A)			$			per share(A)

Certain items before income taxes

Restructuring initiatives - Global	$	(2	)	$	(0.02	)	$	—		$	—

Restructuring initiatives - Altona	(1		)	(0.01		)	(1		)	(0.01		)

Cost reduction initiatives	—			—			(1		)	(0.01		)

Total certain items	(3		)	(0.03		)	(2		)	(0.02		)

Cumulative effect of accounting change (B)	—			—			4			0.04

Total certain items and cumulative effect of accounting change	(3		)	(0.03		)	2			0.02

Tax impact of certain items and cumulative effect of accounting change	1			—			(1		)	—

Total certain items and cumulative effect of accounting change, after tax	$	(2	)	$	(0.03	)	$	1		$	0.02

Periods ended December 31	Three Months				Periods ended December 31	Three Months
Dollars in millions, except per share amounts (unaudited)	2006		2005		Dollars in millions, except per share amounts (unaudited)	2006		2005

Statement of Operations Line Item					Certain items by Segment
Cost of sales	$	2	$	—	Carbon Black Business	$	3	$	1
Selling and administrative expenses	1		2		Supermetals Business	—		1
Total certain items	$	3	$	2	Total certain items	$	3	$	2

(A) Per share amounts are calculated after tax.

(B) Cumulative benefit of accounting change from implementation of FAS 123(R).

Exhibit 99.2

CABOT CORPORATION
FIRST QUARTER FISCAL YEAR 2007
SUPPLEMENTAL BUSINESS INFORMATION
(Unaudited)

Business Segment Sales Analysis

Key factors impacting net sales for each business during the first quarter of 2007 were as follows:

Carbon Black Business

Impact on Sales (Dollars in millions)	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Prices	36	(2)
Foreign currency translation	14	2
Volumes	8	(31)

Metal Oxides Business

Impact on Sales (Dollars in millions)	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Volumes	8	(4)
Foreign currency translation	2	—

Supermetals Business

Impact on Sales (Dollars in millions)	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Volumes	(6)	7
Prices	(10)	5

Business Segment Profitability Analysis

Key factors impacting PBT for each business during the first quarter of 2007 were as follows:

Carbon Black Business

Impact on PBT (Dollars in millions)	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Price / mix	35	4
Volumes	4	(15)
Raw materials	—	23
Fixed costs	(4)	5
Inventory change and other inventory charges	(8)	1

Metal Oxides Business

Impact on PBT (Dollars in millions)	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Volumes	5	(3)
Raw materials	4	—
Fixed costs	(2)	1

Supermetals Business

Impact on PBT (Dollars in millions)	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Fixed costs	17	3
Selling, technical and administrative expenses	4	(1)
Volumes	(4)	4
Price / mix	(10)	5
Raw materials	(1)	(2)

Business Segment Volume Changes

Business Segment	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
Carbon Black Business
Rubber Blacks	8%	(5%)
Performance Products	(4%)	(10%)
Inkjet Colorants	(9%)	(18%)
Metal Oxides Business
Fumed Metal Oxides	13%	(6%)
Supermetals Business	(6%)	11%

Rubber Blacks Regional Volume Changes

Region	Q1 2007 vs Q1 2006	Q1 2007 vs Q4 2006
North America	(23%)	(21%)
South America	11%	(5%)
Europe	13%	2%
Asia Pacific	18%	(6%)
China	34%	9%

Capital Expenditures

Cabot invested approximately $26 million in capital expenditures during the first quarter of fiscal year 2007 compared to $49 million in the same period of fiscal year 2006.

Share Repurchases

There were no open market purchases of Cabot common stock during the quarter.

Working Capital

During the first quarter of 2007 net working capital increased by $32 million in constant dollars ($42 million at actual exchange rates). The increase in net working capital was driven by a decrease in accounts payable resulting from the payment of certain year end accruals as well as lower feedstock costs.

Effective Tax Rate

The Company’s effective tax rate for net income was 25% for the first quarter of 2007.

Delaware(State or Other Jurisdiction of Incorporation)

Exhibit 99.1

CABOT ANNOUNCES FIRST QUARTER OPERATING RESULTS

Business Segment Sales Analysis

Key factors impacting net sales for each business during the first quarter of 2007 were as follows:

Business Segment Volume Changes

Rubber Blacks Regional Volume Changes

Delaware
(State or Other Jurisdiction of Incorporation)