Case Study: Cabot Corporation reduces FX volatility and saves over $1 million with FiREapps

Cabot Corporation - Customer Case Study

Cabot Corporation, a global specialty chemicals company, faced significant challenges in managing its foreign exchange exposure due to inconsistent data from its JD Edwards ERP system. The treasury team spent 170 hours monthly manually consolidating spreadsheets to estimate FX risks using outdated data, which hampered their ability to make effective hedging decisions and protect earnings per share. They partnered with FiREapps to address these issues.

FiREapps provided a solution that gave Cabot's treasury team a real-time, complete view of its exposures across all currency pairs. This required a cross-functional effort with accounting and finance to ensure data accuracy at the source. The implementation by FiREapps enabled Cabot to eliminate 63% of its exposure internally, saving over $1 million annually in transaction costs. The company reduced its FX impact on EPS from as much as $0.06 to within the industry benchmark of less than $0.01.

Cabot Corporation

Eddie Cordeiro

CFO