Exhibit 99.1

Cabot Corporation Reports Record EPS of $3.57 for Fiscal 2011

Fourth quarter EPS of $0.76, $0.66 Adjusted EPS

BOSTON--(BUSINESS WIRE)--October 25, 2011--Cabot Corporation (NYSE: CBT) today announced results for its fourth quarter and full fiscal year 2011.

Key Highlights

• Robust segment earnings drive strong fiscal 2011 performance, resulting in $3.57 EPS, $3.00 adjusted EPS
• Value pricing and a favorable product mix continue to benefit results
• Short-term volume softness in certain end markets, but long-term growth drivers remain solid
• Supermetals divestiture will reduce cyclicality of portfolio

*In the table above, results related to the Supermetals Business are included in discontinued operations and all periods have been recast to conform to this change.

Commenting on the results, Patrick Prevost, Cabot’s President and CEO, said, “In 2011, we confirmed our ability to achieve a new level of earnings power and consistency while maintaining adjusted return on invested capital above our targeted 13%. We had impressive improvement of earnings per share from $2.35 in fiscal 2010 to $3.57 in fiscal 2011. We achieved this performance despite unfavorable LIFO charges of $17 million and currency losses of $8 million that partially offset robust segment results. Our segment EBIT increased by $40 million or 13% as compared to fiscal 2010, excluding the Supermetals Business. We were able to deliver these solid 2011 segment results due to our ongoing focus on pricing and our continued investments in new products and technologies. These steps position us for long-term success and will pave the way for our next phase of growth. With new capacity coming on line in the upcoming quarters, we are poised to capitalize on favorable long-term fundamentals across our global end markets.”

“In the fourth quarter, we continued to benefit from our ongoing value pricing initiatives. We were impacted to some degree by volume softness and to a larger extent from deliberate operating decisions that increased our costs,” Prevost said. “We reduced our inventory levels to ensure proper positioning in view of the near term economic uncertainty. This led to lower short-term plant utilization. We also took the initiative to perform higher than normal plant maintenance that was not possible while our assets were running close to capacity. The combination of these two items substantially increased our costs in the fourth fiscal quarter. We are pleased with the performance of our Specialty Fluids Segment, where we experienced strong earnings as activity levels improved.”

“Additionally in the fourth quarter, we announced the planned divestiture of our Supermetals Business, which will reduce the cyclicality of our portfolio. We are extremely pleased with the financial terms of the sale, and the proceeds of the transaction will enable us to pursue strategic investments that will yield attractive value for our shareholders,” Prevost concluded.

Financial Detail

Financial results in all periods have been recast to conform to changes made to discontinued operations for our Supermetals Business and to segment reporting as described fully in the attached financial tables. The segment changes include the reclassification of 1) the Elastomer Composites Business from the Rubber Blacks Business to the New Business Segment, 2) corporate business development costs related to new technology efforts from the New Business Segment to Unallocated Corporate Costs, 3) the impact from LIFO accounting from the Rubber Blacks Business and Performance Segment to General Unallocated Expense, and 4) corporate overhead costs that had been allocated to the Supermetals Business to the remaining segments.

For the fourth quarter of fiscal 2011, net income attributable to Cabot Corporation was $49 million ($0.76 per diluted common share) which includes $0.14 per share income from discontinued operations, primarily related to the planned divestiture of the Supermetals Business. In addition, it includes a per share charge of $0.04, principally for restructuring costs. Adjusted EPS for the fourth quarter was $0.66 per share.

Segment Results

Core Segment-- Fourth quarter fiscal 2011 EBIT in the Rubber Blacks Business increased by $13 million when compared to the same quarter of fiscal 2010. The increase was driven principally by higher prices, a favorable product mix, and energy center benefits. These positive factors more than offset the impact of $11 million of higher fixed costs and 3% lower volumes, excluding the volume impact of the closure of our carbon black facility in India, when compared to the fourth quarter of fiscal 2010. Sequentially, EBIT declined $19 million driven by $13 million of higher fixed costs and 4% lower volumes. Higher fixed costs in the fourth quarter of fiscal 2011 as compared to the fourth quarter of fiscal 2010 and the third quarter of fiscal 2011 were driven by plant maintenance completed during the quarter and the reduction of inventory levels, which drove lower plant utilization.

Global and regional volume changes for the fourth quarter of fiscal 2011 as compared to the same quarter of the prior year and to the third fiscal quarter of 2011 are included in the table below.

*Excludes the impact of the closure of our carbon black facility in India.

Performance Segment-- Fourth quarter fiscal 2011 EBIT in the Performance Segment decreased by $2 million and $16 million when compared to the fourth quarter of fiscal 2010 and the third quarter of fiscal 2011, respectively. The decrease in comparison to both periods was driven principally by higher fixed costs and lower volumes partially offset by higher pricing and improved product mix. Higher fixed costs unfavorably impacted the comparison to the fourth quarter of fiscal 2010 by $10 million and the third quarter of fiscal 2011 by $8 million. These higher fixed costs were driven by additional maintenance, the start-up of new capacity, and the reduction of inventory levels, which drove lower plant utilization. Volumes in Performance Products increased 1%, while volumes in Fumed Metal Oxides decreased by 8% when compared to the fourth quarter of fiscal 2010. Sequentially, volumes decreased 10% in Performance Products and 3% in Fumed Metal Oxides.

Specialty Fluids-- For the fourth quarter of fiscal 2011, EBIT of $12 million in the Specialty Fluids Segment was our second best quarter in history. However, EBIT decreased by $2 million as compared to our best quarter ever, which was the fourth quarter of fiscal 2010. This decline was a result of lower rental activity compared to the exceptionally high levels of rental activity in the prior year. Sequentially, EBIT increased $9 million from higher revenue as rental jobs underway in the prior quarter were completed in the fourth quarter of fiscal 2011.

New Business Segment-- Fourth quarter fiscal 2011 EBIT in the New Business Segment decreased by $2 million as compared to the fourth quarter of fiscal 2010 primarily due to the phasing of certain milestone achievements and the corresponding recognition of payments related to the Elastomer Composites Business. Sequentially, EBIT declined $1 million from the timing of volumes related to specific customer order patterns in the Inkjet Colorants Business.

Cash Performance-- The Company ended the fourth quarter of fiscal 2011 with a cash balance of $286 million. During the fourth quarter of fiscal 2011, the Company’s cash balance declined by $58 million, driven by capital expenditures of $114 million for growth initiatives and sustaining maintenance capital, as well as cash used to repurchase approximately 1.6 million shares of stock for $50 million. These uses of cash were partially offset by solid operating results and a $17 million reduction in net working capital.

Taxes-- During the fourth quarter of fiscal 2011, the Company recorded a net tax provision on continuing operations of $2 million, including discrete tax benefits of $9 million. The tax rate on continuing operations was 5% for the fourth quarter of fiscal 2011. Excluding discrete tax benefits and the impact of certain items, the quarterly operating tax rate on continuing operations was 25%. The tax rate on discontinued operations for the fourth quarter of fiscal 2011 was 39%.

Market Outlook

Commenting on the outlook for the Company, Prevost said, “Due to the uncertainty in the global economic environment, we are somewhat cautious about next quarter. However, we are optimistic about the upcoming calendar year because of our ongoing pricing initiatives and the expected growth of our new products and businesses. In addition, the relatively low inventories we see at our customers and the many non-discretionary applications we serve give us confidence in our ability to deliver solid earnings.”

“We remain focused on our initiatives to drive earnings growth through pricing, new product and business innovation, capacity expansions and strategic capital deployment. We have a robust balance sheet and continue to target capital expenditures of $200 million to $250 million each year for the next three years. I am confident in our ability to deliver on our stated financial objectives as we continue to improve our position as a top-tier specialty chemicals and performance materials company,” Prevost stated.

Earnings Call

The Company will host a conference call with industry analysts at 2:00 p.m. Eastern time on Wednesday, October 26, 2011. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com.

Cabot Corporation, headquartered in Boston, Massachusetts, is a global specialty chemicals and performance materials company. Cabot’s major products are carbon black, capacitor materials, fumed silica, cesium formate drilling fluids, inkjet colorants and aerogels. The Company’s website address is: http://www.cabot-corp.com.

Forward-Looking Statements-- This earnings release contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including our ability to meet our long-term financial targets, strategy for growth, market position, demand for our products, when we expect commissioning of our capacity additions to occur, the effect we expect the disposition of our Supermetals Business to have on the cyclicality of the portfolio, yields on our future investments, and expected financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions. Forward-looking statements are based on our current expectations, assumptions, estimates and projections about Cabot's businesses and strategies, market trends and conditions, economic conditions and other factors. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed in the forward-looking statement. Important factors that could cause our results to differ materially from those expressed in the forward-looking statements include, but are not limited to changes in raw material costs; costs associated with the research and development of new products, including regulatory approval and market acceptance; competitive pressures; delays in the successful integration of structural changes, including restructuring plans, and joint ventures; delays in the completion or start-up of our capacity expansion projects; the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier or customer operations. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission, particularly our latest annual report on Form 10-K.

Explanation of Terms Used-- The term “LIFO” includes two factors: (i) the impact of current inventory costs being recognized immediately in cost of goods sold (“COGS”) under a last-in first-out (“LIFO”) method, compared to the older costs that would have been included in COGS under a first-in first-out (“FIFO”) method (“COGS impact”); and (ii) the impact of reductions in inventory quantities, causing historical inventory costs to flow through COGS (“liquidation impact”). The liquidation impact was attributable to discontinued operations. The consolidated impact to continuing operations of using the LIFO method to value inventories in the US instead of the FIFO method for the fourth quarters of fiscal 2011 and 2010 was a favorable $3 million and an unfavorable $1 million, respectively, of COGS impact. The fiscal year COGS impact for 2011 and 2010 was an unfavorable $17 million and $1 million, respectively.

The term “quarterly operating tax rate” represents the tax rate on our recurring operating results. This rate excludes discrete tax items, which are unusual and infrequent items that are excluded from the estimated annual effective tax rate and other tax items, including the impact of the timing of losses in certain jurisdictions, cumulative rate adjustment and the impact of certain items on both operating income and tax provision.

The term “product mix” refers to the various types and grades, or mix, of products sold in a particular Business or Segment during the period, and the positive or negative impact of that mix on the revenue or profitability of the Business or Segment.

Use of Non-GAAP Financial Measures-- The preceding discussion of our results and the accompanying financial tables report adjusted EPS and include information about adjusted return on invested capital ("adjusted ROIC"), which are non-GAAP financial measures. Our chief operating decision-maker uses adjusted EPS to evaluate the performance of the Company in terms of profitability and adjusted ROIC to measure the effectiveness of our use of capital. We believe that these measures also assist our investors in evaluating the changes in our results and the Company's performance.

In calculating adjusted EPS, we exclude from our net income per share from continuing operations certain items of expense and income that management does not consider representative of the Company's ongoing operations. We believe this non-GAAP financial measure is useful to investors because it eliminates distortions in our operating results and helps facilitate comparisons of our operating performance across periods. Adjusted EPS should be considered as supplemental to, and not as a replacement for, EPS determined in accordance with GAAP. A reconciliation of adjusted EPS to EPS from continuing operations, the most directly comparable GAAP financial measure, and the certain items that are excluded from our calculation of adjusted EPS, are provided in the table titled "Certain Items and Reconciliation of Adjusted EPS.”

In calculating adjusted ROIC, we divide four quarter rolling net income (loss) attributable to Cabot Corporation (less the after tax noncontrolling interest in net income, after tax net interest expense and after tax certain items) by the previous five quarters' average of Cabot Corporation stockholders' equity plus noncontrolling interest's equity plus debt, less cash and cash equivalents and the four quarter rolling impact of after tax certain items. The certain items that are excluded from the numbers we use to calculate adjusted ROIC are provided in the table titled Certain Items and Reconciliation of Adjusted EPS. ROIC is not a measure of financial performance under GAAP and may not be defined and calculated by other companies in the same manner.

CONTACT:
Cabot Corporation
Erica McLaughlin, 617-342-6090
Director, Investor Relations