Orion Engineered Carbons S.A (OEC) News
Market Cap: $764.83M
Avg Volume: 595.56K
Industry: Chemicals - Specialty
Sector: Basic Materials
Orion S.A.'s Circular Carbon Black Recognized by EU's ‘Innovation Radar'
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, announced today the European Commission has listed the company on its “Innovation Radar” website, which identifies high-potential innovators that have done EU-funded research. The recognition highlights Orion's achievement as a “Key Innovator” for being the first company to produce circular carbon black from 100% pyrolysis oil from end-of-life tires. The market-ready material serves as an alternative to carb.
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Orion S.A. Declares Interim Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced that its Board of Directors has declared an interim dividend to be paid in the second quarter of 2025 of $0.0207 per common share of the company, which is equivalent to the aggregate amount of approximately $1.25 million based on the number of common shares currently outstanding. The interim dividend will be paid on April 4, 2025, to holders of record as of the close of business in New York o.
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Orion S.A. Announces its 2025 Annual General Meeting Date and Record Date
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced that it will hold its 2025 annual general meeting of shareholders on Thursday, June 26, 2025, at 2:00 pm Central European Time at the company's office, located at 6, Route de Trèves, L-2633 Senningerberg (Municipality of Niederanven), Grand Duchy of Luxembourg. The company also set its record date for the admission of the company's shareholders to its annual general meeting to April 24, 2025,.
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Orion S.A. (OEC) Q4 2024 Earnings Call Transcript
Orion S.A. (NYSE:OEC ) Q4 2024 Earnings Conference Call February 20, 2025 8:30 AM ET Company Participants Chris Kapsch - Vice President-Investor Relations Corning Painter - Chief Executive Officer Jeff Glajch - Chief Financial Officer Conference Call Participants Josh Spector - UBS Laurence Alexander - Jefferies John Roberts - Mizuho Securities Jon Tanwanteng - CGS Securities Operator Greetings, and welcome to the Orion Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
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Orion (OEC) Q4 Earnings Top Estimates
Orion (OEC) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.17 per share a year ago.
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Orion S.A. Announces Financial Results For The Full Year Ended December 31, 2024
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for the fourth quarter and full year of 2024. Fourth Quarter 2024 Financial Highlights Net sales of $434.2 million, down $34.0 million, year over year Net income of $17.2 million, up $12.3 million, year over year. Diluted EPS of $0.30 up $0.22, year over year. Adjusted Diluted EPS1 of $0.35, up $0.18, year over year. Adjusted EBITDA1 of $61.7 million, down $4.9 million, year over ye.
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Orion Inks Agreement With Contec S.A. for Supply of TPO
OEC partners with Contec to secure a long-term supply of TPO to produce circular carbon black.
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Orion S.A.: A Strong Bull Case And A History Of Disappointment
Orion S.A. (OEC) stock has disappointed, and execution remains a primary concern. But the potential for substantial rewards exists if Orion can finally deliver on its growth projections and improve operational execution. Management's mid-cycle estimate of $500 million in Adjusted EBITDA "capacity" suggests significant upside, especially if cyclical trends turn favorable.
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Orion S.A. signs supply agreement for tire pyrolysis oil with Contec S.A.
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, announced today it has signed a long-term supply agreement with Contec S.A., which will provide Orion tire pyrolysis oil to produce circular carbon black for tire and rubber goods customers. The agreement with Warsaw, Poland-based Contec further enables Orion to diversify its sources of tire pyrolysis oil, commonly known as TPO. “With the ConPyro® TPO supplied by Contec, Orion will be able to make large-scal.
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Orion S.A. Announces Preliminary Full Year 2024 Update
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced a preliminary unaudited financial update for its fiscal year ending December 31, 2024. Orion now expects 2024 adjusted EBITDA to be nominally below our guidance range of $305-$315 million, due primarily to foreign exchange translation impacts related to the strengthening dollar and one-time costs associated with a cost reduction plan. Weaker than anticipated Rubber segment volumes late in the.
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GE HealthCare Announces Advanced Imaging Innovations for OEC 3D C-arm to Help Improve Precision Care in Practice of Interventional Pulmonology
CHICAGO--(BUSINESS WIRE)--GE HealthCare announces additional clinical applications now available as part of the OEC 3D mobile CBCT C-arm portfolio.
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Orion Is A Buy At Current Prices
Orion is trading at market cap of about $1.01B after the price action since August. The valuation of Orion is very compelling at 0.55x sales. The carbon black market has multiple growth drivers which will help Orion's top and bottom line.
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Orion S.A. to Participate in Baird's Global Industrial Conference
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced participation next week at the Baird Global Industrial Conference on Nov. 14 in Chicago. Attending the investor events will be CEO Corning Painter, Chief Financial Officer Jeff Glajch and Vice President of Investor Relations Chris Kapsch. A presentation by Painter is also scheduled for 10:50 a.m. to 11:20 a.m. Central Standard Time during the conference. The presentation will be accessible th.
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Orion S.A. (OEC) Q3 2024 Earnings Call Transcript
Orion S.A. (NYSE:OEC ) Q3 2024 Earnings Conference Call November 8, 2024 8:30 AM ET Company Participants Chris Kapsch – Vice President-Investor Relations Corning Painter – Chief Executive Officer Jeff Glajch – Chief Financial Officer Conference Call Participants Josh Spector – UBS Laurence Alexander – Jefferies John Roberts – Mizuho Securities Jeff Zekauskas – JPMorgan Jon Tanwanteng – CJS Securities Operator Greetings, and welcome to the Orion Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
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Orion (OEC) Q3 Earnings and Revenues Miss Estimates
Orion (OEC) came out with quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.49 per share a year ago.
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Orion S.A. Reports Third Quarter 2024 Financial Results
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for period ended September 30, 2024 as follows: Third Quarter 2024 Highlights Net sales of $463.4 million, down $2.8 million year over year Net loss of $20.2 million, which includes a $42.5 million impact from the loss due to misappropriation of assets, net of income tax benefit, down $46.4 million year over year Diluted Loss per share of ($0.35), which includes impact due to misapp.
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Natalia Scherbakoff Joins Orion S.A. as Chief Technology Officer
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals manufacturer, announced today that Natalia Scherbakoff has been appointed the company's new chief technology officer. She will succeed David Deters, who for nearly a decade led a global innovation program that made Orion a leader in developing sustainable materials, battery additives and other technology in the carbon black industry. Deters announced his retirement earlier this year and will remain with Orion through.
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Orion S.A. Announces Third Quarter 2024 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that the company will release its third quarter 2024 results after the market closes on Thursday, November 7, 2024, to be followed by a conference call on Friday, August 8, 2024, at 8:30 a.m. (ET). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A conference call replay may be accessed at the following numbers through Fr.
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Orion S.A. to Participate in Jefferies and UBS Investor Conferences
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced participation next week at the Jefferies Industrials Conference on Sept. 4, and at the UBS Global Materials Conference on Sept. 5 in New York. Attending the investor events will be CEO Corning Painter, Chief Financial Officer Jeff Glajch and Vice President of Investor Relations Chris Kapsch. Fireside chat conversations with Corning Painter are scheduled for 10:25 am to 10:55 am ET during the.
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Orion: Compelling Buy Following A 22% Panic SellOff
I view the 22% selloff following Q2 2024 earnings results as exaggerated, given the company's underlying financial performance and potential for recovery. Challenges in the rubber segment include increased tire imports from Southeast Asia, and a decline in cogeneration profitability due to lower European power prices and plant downtimes. Positive Q4 outlook for cogeneration, as energy prices rise in Europe approaching winter, and planned end of downtime in the Louisiana plant by Q3.
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Orion (OEC) Q2 Earnings and Revenues Lag Estimates
Orion (OEC) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.53 per share a year ago.
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Orion S.A. Reports Second Quarter 2024 Financial Results
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for period ended June 30, 2024 as follows: Second Quarter 2024 Highlights Net sales of $477.0 million, up $18.2 million, year over year Net income of $20.5 million, down $9.6 million, year over year Diluted EPS of $0.35, down $0.16, year over year Adjusted EBITDA1 of $75.1 million, down 14%, year over year Adjusted Diluted EPS1 of $0.41, down $0.12, year over year Six Months 2024 Hi.
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Orion S.A. Announces Second Quarter 2024 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that the company will release its second quarter 2024 results after the market closes on Thursday, August 1, 2024, to be followed by a conference call on Friday, August 2, 2024, at 8:30 a.m. (ET). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A conference call replay may be accessed at the following numbers through Friday,.
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Orion S.A. Invests to Upgrade Alpha Carbone Facility
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, announced today it is investing in Alpha Carbone, a French tire recycling company. The partnership will enable Alpha Carbone to scale up and produce commercial volumes of tire pyrolysis oil and recovered carbon black. The cooperation also includes a long-term supply agreement with Orion as the exclusive customer for the tire pyrolysis oil produced by Alpha Carbone. The oil will be used by Orion to manufactur.
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Orion S.A. Reports First Quarter 2024 Financial Results
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for period ended March 31, 2024 as follows: Three Months 2024 Highlights Net sales of $502.9 million, up $2.2 million, year over year Net income of $26.7 million, down $15.6 million, year over year Diluted EPS of $0.45, down $0.25, year over year Adjusted EBITDA1 of $85.3 million, down 16%, year over year Adjusted Diluted EPS1 of $0.52, down $0.22, year over year 1 The reconciliatio.
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Orion S.A. Earns Platinum Sustainability Rating by EcoVadis
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemical company, announced today its 2024 sustainability rating from EcoVadis has been raised from Gold to Platinum, the highest possible distinction. Orion now ranks among the top 1% of the companies assessed by EcoVadis, one of the world's largest providers of business sustainability ratings. The organization revised Orion's score from 78% to 82% after reassessing the company's 2023 performance. “Achieving the Platinum rati.
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Orion S.A. Announces First Quarter 2024 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that the company will release its first quarter 2024 results after the market closes on Thursday, May 2, 2024, to be followed by a conference call on Friday, May 3, 2024, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the following numbers throu.
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Orion (OEC) Breaks Ground on Texas Battery Materials Plant
Orion's (OEC) facility in La Porte is similar to one located in Berre-l'Etang, southern France.
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Orion S.A. Breaks Ground on Battery Materials Plant in Texas
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, on Tuesday broke ground on a plant in Texas that will be the only facility in the U.S. producing acetylene-based conductive additives for lithium-ion batteries and other applications vital for the global shift to electrification. The site in the city of La Porte, southeast of Houston, will create many high-skilled jobs – both in construction and technical fields – and bring innovative technology to the Ameri.
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New Strong Sell Stocks for April 5th
NXST, OEC and SZKMY have been added to the Zacks Rank #5 (Strong Sell) List on April 5, 2023.
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Orion S.A. Maintains Gold Sustainability Rating by EcoVadis
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, announced today it has maintained a Gold medal rating from EcoVadis and ranks among the top 2% of the companies assessed by the organization in a wide range of sustainability areas. Orion improved its score from the previous year, moving up from 77% to 78% by making significant gains in the areas of sustainable procurement and ethics, according to EcoVadis, one of the world's largest providers of business su.
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Orion S.A. Announces its 2024 Annual General Meeting Date and Record Date
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE:OEC), a specialty chemical company, today announced that it will hold its 2024 annual general meeting of shareholders on Thursday, June 20, 2024, at 2:00 pm Central European Time at the company's office, located at 6, Route de Trèves, L-2633 Senningerberg (Municipality of Niederanven), Grand Duchy of Luxembourg. The company also set its record date for the admission of the company's shareholders to its annual general meeting to April 26, 2024, at 11:59.
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Orion S.A. Announces Financial Results For The Full Year Ended December 31, 2023
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for the full year of 2023. Full Year 2023 Financial Highlights Net sales of $1,893.9 million, down $137.0 million, year over year. Net income of $103.5 million, down $2.7 million, year over year. Diluted EPS of $1.73 for the years ended December 31, 2023 and 2022. Adjusted Diluted EPS1 of $1.92, down $0.04, year over year. Record Adjusted EBITDA1 of $332.3 million, up $20.0 million,.
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Orion (OEC) Prioritizes Value Creation After Emissions Upgrades
Orion (OEC) completes its largest sustainability initiative, upgrading emissions control across U.S. plants. It is focusing on profitable growth and environmental responsibility.
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Orion S.A. Completes all Air Emissions Technology Projects and Updates Business Conditions
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals producer, announced today it has completed upgrading its air emissions control technology at all four of its U.S. carbon black plants – the biggest sustainability-related initiative in the company's history. The company recently finished its final air emissions project at its plant in Belpre, Ohio. Previously the company upgraded the Borger, Texas, Ivanhoe, Louisiana, and Orange, Texas, facilities. The upgrades were.
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Orion S.A. Announces Full Year 2023 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that the company will release its full year and fourth quarter 2023 results after the market closes on Wednesday, February 14, 2024, to be followed by a conference call on Thursday, February 15, 2024, at 8:30 a.m. (EST). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone.
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7 Overlooked Small-Cap Stocks to Keep On Your Radar
It's an obvious risk factor: overlooked small-cap stocks offer tremendous upside potential but in exchange for the likelihood of severe volatility. Imagine you're a couch potato but you want to get fit as part of your new year's resolution.
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Orion S.A.: Automotive Coatings And EVs Demand Could Trigger Price Action
Orion S.A. recently delivered strong FCF growth and has potential for further growth driven by megatrend drivers like EV vehicles and demand for batteries. The company is using cash flows to buy back shares and lower its debt levels, indicating good financial management. The recent increase in R&D spending suggests the development of new products and potential net sales growth.
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Orion S.A. Leads Industry with Four Carbon Black Plants Awarded ISCC PLUS
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, announced today a fourth plant has earned International Sustainability and Carbon Certification (ISCC PLUS). The company now leads its industry with the number of certified carbon black production sites. Orion's facility in Cologne, Germany, was the company's latest plant to pass extensive audits that confirmed the site's compliance with rigorous ISCC PLUS sustainability requirements. The plant was certified for pro.
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Orion Engineered Carbons S.A. (OEC) Q3 2023 Earnings Call Transcript
Orion Engineered Carbons S.A. (NYSE:OEC ) Q3 2023 Earnings Conference Call November 3, 2023 8:30 AM ET Company Participants Wendy Wilson - Head, Investor Relations Corning Painter - Chief Executive Officer Jeff Glajch - Chief Financial Officer Conference Call Participants Josh Spector - UBS Chris Kapsch - Loop Capital Markets Jon Tanwanteng - CJS Securities Kevin Estok - Jefferies Jeff Zekauskas - JPMorgan Kyle Mowery - Grizzly Rock Capital Operator Greetings, and welcome to the Orion's Third Quarter Financial Results Call.
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Orion S.A. Reports Nine Month and Third Quarter Financial Results
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for the nine months and the third quarter of 2023. Nine Months 2023 Highlights Net sales of $1,425.7 million, down $143.1 million, year over year Net income of $98.6 million, up $4.6 million, year over year Record Diluted EPS of $1.65, up $0.12, year over year Record Adjusted EBITDA1 of $265.7 million, up 8%, year over year Record Adjusted Diluted EPS1 of $1.76, up $0.06, year over.
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Orion S.A. Launches PRINTEX® kappa 10, Feeding High Demand Growth in the Lithium-ion Battery Industry
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced the launch of PRINTEX® kappa 10 – a high-quality conductive additive that will supply surging demand from producers of lithium-ion batteries for electric vehicles, energy storage systems and consumer applications. The new product, produced with furnace technology in Europe and eventually in Asia, marks a crucial expansion of Orion's portfolio of conductive additives. The company also makes ot.
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Orion S.A. Announces Third Quarter 2023 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that the company will release its third quarter 2023 results after the market closes on Thursday, Nov. 2, 2023, to be followed by a conference call on Friday, Nov. 3, 2023, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the following numbers thr.
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Orion S.A. Renews Its Revolving Credit Facility
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that it has renewed its senior secured revolving credit facility, which was intentionally reduced from EUR 350 million to EUR 300 million, as a result of the company's stronger cash flow. The credit facility has a five-year term and was oversubscribed by 20 percent, showing the confidence the market has for Orion's prospects. “We are excited that our revolving credit facility has been renewed at this.
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Orion (OEC) Accelerates Battery Innovation With New German Center
Orion (OEC) opens a new Battery Innovation Center in Germany to accelerate custom product and process development in close cooperation with customers.
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Orion S.A. Opens Battery Innovation Center in Germany
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced the opening of its Battery Innovation Center in Germany – a major expansion serving the rapidly growing lithium-ion battery industry powering the global shift to electrification. The new center is located at Orion's main innovation hub in Cologne. The facility includes a full array of state-of-art production, testing and diagnostic equipment. The center will accelerate Orion's tailor-made pro.
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With German, EU Funding, Orion S.A. Investing €12.8M in Project for Circular Carbon Black
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals producer, is investing €12.8 million – including €6.4 million in funding from the German government and the European Union – to further develop and demonstrate a climate-neutral process for producing carbon black from alternative carbon sources, the company said today. The technology is designed to improve Orion's yield and throughput in the production of carbon black using circular feedstocks and thus potentially re.
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Orion S.A. to Participate in Upcoming Investor Conferences
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemicals company, announced today that Chief Executive Officer Corning Painter and Chief Financial Officer Jeff Glajch are scheduled to participate in two upcoming investor conferences. On Wednesday, September 6, 2023, Mr. Painter and Mr. Glajch will be available to meet with investors via one-on-one meetings at the UBS Chemicals Conference in New York. On Thursday, September 7, 2023, Mr. Painter and Mr. Glajch will be available to.
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Orion S.A.: Appealing Growth Prospects As Buyback Programs Come Online
Orion S.A. is a leading manufacturer and seller of carbon black products with a strong customer base and solid earnings growth. The company aims to achieve $400-500 million in free cash flow between 2023 and 2025, and has announced $50 million in share buybacks. While the rubber carbon market is expected to grow slowly, OEC holds a dominant position in the rapidly growing specialty carbon market.
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Orion Engineered Carbons S.A. (OEC) Q2 2023 Earnings Call Transcript
Orion Engineered Carbons S.A. (NYSE:OEC ) Q2 2023 Earnings Conference Call August 10, 2023 8:30 AM ET Company Participants Wendy Wilson - Head of IR Corning Painter - CEO Jeff Glajch - CFO Conference Call Participants Chris Kapsch - Loop Capital Markets Jon Tanwanteng - CJS Securities John Roberts - Credit Suisse Josh Spector - UBS Jeff Zekauskas - JPMorgan Operator Greetings, and welcome to the Orion SA Second Quarter 2023 Earnings Conference Call.
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Orion (OEC) Misses Q2 Earnings and Revenue Estimates
Orion (OEC) came out with quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.58 per share a year ago.
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Orion S.A. Reports Second Quarter Financial Results
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for the second quarter of 2023. Second Quarter 2023 Financial Highlights Net sales of $458.8 million, down $82.4 million, year over year Net income of $30.1 million, up $0.4 million, year over year Diluted EPS of $0.51, up $0.02, year over year Adjusted EBITDA1 of $87 million, up 5%, year over year Adjusted Diluted EPS1 of $0.53, down $0.05, year over year 1 The reconciliations of N.
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Orion S.A. Releases 2022 Sustainability Report
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today released its 2022 Sustainability Report that highlights a variety of initiatives, including launching four new sustainable products, conducting a Scope 3 greenhouse gas emissions inventory and nearing the completion of a massive air emissions control project. The report's “CEO Letter to Stakeholders” describes the magnitude, complexity and impact of the air emissions control initiative that started fiv.
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Orion S.A. Announces Second Quarter 2023 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that the company will release its second quarter 2023 results after the market closes on Wednesday, Aug. 9, 2023, to be followed by a conference call on Thursday, Aug. 10, 2023, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the following number.
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Orion to Attend the Wells Fargo Industrials Conference
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that members of its executive management team will attend the Wells Fargo Industrials Conference in Chicago on Thursday, June 15, 2023. Orion's executives will be available to participate in one-on-one meetings with investors registered to attend the conference. As part of these meetings, the team will be updating current market conditions that may impact its second quarter 2023 volume expectations:.
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Orion Declares Interim Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that its board of directors has declared an interim dividend to be paid in the fourth quarter of 2023 of $0.0207 per common share of the company, which is equivalent to the aggregate amount of approximately $1.25 million based on the number of common shares currently outstanding. The interim dividend will be paid on Oct. 5, 2023, to holders of record as of the close of business on Sept. 15, 2023. Lux.
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Orion Engineered Carbons to Participate in the KeyBank 21st Annual Industrial & Basic Materials Conference
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemicals company, announced today that Chief Executive Officer Corning Painter and Chief Financial Officer Jeff Glajch will participate in one-on-one meetings at the KeyBank 21st Annual Industrial & Basic Materials Conference at the Intercontinental Hotel in Boston on June 1, 2023. About Orion Engineered Carbons Orion Engineered Carbons (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbo.
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Orion Engineered Carbons' Board of Directors Authorizes New Share Repurchase Program
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, today announced that its Board of Directors has approved a new share repurchase program with authorization to management to purchase up to approximately 6.9 million of its outstanding common stock. This new program allows for shares to be repurchased at any time through June 2027. Combined with the soon-to-be-completed previous share repurchase authorization to management, the company has the p.
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Orion Engineered Carbons (OEC) Beats Q1 Earnings Estimates
Orion Engineered Carbons (OEC) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.57 per share a year ago.
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Orion Engineered Carbons Reports Record First Quarter Financial Results
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced financial results for the first quarter of 2023. First Quarter 2023 Financial Highlights Net sales of $500.7 million, up $16.2 million, year over year Net income of $42.3 million, up $9.8 million, year over year Diluted EPS of $0.70, up $0.17, year over year Record Adjusted EBITDA1 of $101 million, up 22%, year over year Record Adjusted Diluted EPS1 of $0.74, up $0.17, year over year Re.
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Orion Engineered Carbons Achieves 2022 Emissions Targets for Sustainability-Linked Term Loan
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals producer, announced today the company has achieved its 2022 emissions targets in the U.S. and will receive a 10 basis point rate reduction in interest payments on its sustainability-linked term loan, saving approximately $650,000. When Orion agreed to the seven-year $650-million term loan in 2021, the company was one of the first to link the loan to environmental goals. Starting this year, a third-party.
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President Museveni meets OEC Secretary General Sheikh Manssour
President Yoweri Museveni on Friday met the Secretary General of the Organization of Educational Cooperation (OEC), Sheikh Manssour Bin Mussallam at Speke Resort Hotel, Munyonyo who briefed him on the mission and vision of the cooperation. The President welcomed the creation of OEC, a new International Organization of countries from the Global South based in […] The post President Museveni meets OEC Secretary General Sheikh Manssour appeared first on Watchdog Uganda...
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Orion Engineered Carbons Declares Interim Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons S.A. (NYSE: OEC), a specialty chemical company, today announced that its board of directors has declared an interim dividend to be paid in the third quarter of 2023 of $0.0207 per common share of the company, which is equivalent to the aggregate amount of approximately $1.25 million based on the number of common shares currently outstanding. The interim dividend will be paid on July 6, 2023, to holders of record as of the close of business on M.
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Cogeneration Technology Installed at Orion's Plant in Louisiana
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemicals company, announced today that cogeneration technology that produces renewable energy has been installed at its Ivanhoe plant in the southern U.S. state of Louisiana, making the facility more efficient, reliable and sustainable. The cogeneration system, which includes a steam turbine generator, uses the waste steam from the carbon black plant's production process and converts it to electricity.
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Orion Engineered Carbons Announces First Quarter 2023 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced that the company will release its first quarter 2023 results after the market closes on Thursday, May 4, 2023, to be followed by a conference call on Friday, May 5, 2023, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follow: U.S.
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Latest Orion Engineered Carbons Insider Buys Show Officer Sentiment on Share Price Gains
On Wednesday evening, two form 4's filed with the SEC revealed company officers from Orion Engineered Carbons (US:OEC) had purchased stock in the trading window following fourth quarter and full year results.
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Orion Engineered Carbons (OEC) Is Attractively Priced Despite Fast-paced Momentum
Orion Engineered Carbons (OEC) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
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What Makes Orion Engineered Carbons (OEC) a Good Fit for 'Trend Investing'
Orion Engineered Carbons (OEC) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen.
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Orion Engineered Carbons Announces its 2023 Annual General Meeting Date and Record Date
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE:OEC), a leading global supplier of specialty and high-performance carbon black, today announced that it will hold its 2023 annual general meeting of shareholders on Wednesday, June 7, 2023, at 2:00 pm Central European Time at the company's office, located at 6, Route de Trèves, L-2633 Senningerberg (Municipality of Niederanven), Grand Duchy of Luxembourg.
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Cabot Boosting Production In Lithium Battery Chain For EV Market
Chemical and materials maker Cabot Corporation (NYSE: CBT) may offer a buy opportunity the next time shares retreat to a key moving average, such as the 10-day, 21-day or 50-day.
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5 Stocks With Recent Price Strength Amid Recession Fears
Investors target stocks that are witnessing a bullish run. Some of the stocks seeing price strength are THR, WFRD, OEC, OBT and UBAB.
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This Small Company Is Set To Drive Future Of Lithium Batteries
Beyond the most common names associated with lithium batteries, such as Albemarle Corp. (NYSE: ALB), Lithium Americas Corp. (NYSE: LAC), Livent Corp. (NYSE: LTHM), Piedmont Lithium Inc. (NASDAQ: PLL) and Sigma Lithium Corp. (NASDAQ: SGML), there are less well-known companies, such as Orion Engineered Carbons SA (NYSE: OEC), set to benefit from supercharged battery demand.
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Orion Engineered Carbons (OEC) is on the Move, Here's Why the Trend Could be Sustainable
Orion Engineered Carbons (OEC) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.
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All You Need to Know About Orion Engineered Carbons (OEC) Rating Upgrade to Buy
Orion Engineered Carbons (OEC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
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Is Orion Engineered Carbons (OEC) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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Orion Engineered Carbons: Right Time To Buy
OEC posted FY22 and Q4 FY22 results with increased revenue. The stock is looking technically strong as it broke out of a resistance zone.
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Orion Engineered Carbons S.A. (OEC) Q4 2022 Earnings Call Transcript
Orion Engineered Carbons S.A. (NYSE:OEC ) Q4 2022 Earnings Conference Call February 17, 2023 8:30 AM ET Company Participants Wendy Wilson - Head of IR Corning Painter - CEO Jeffrey Glajch - CFO Conference Call Participants Josh Spector - UBS Laurence Alexander - Jefferies Jon Tanwanteng - CJS Securities Chris Kapsch - Loop Capital Markets Operator Greetings.
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Orion Engineered Carbons (OEC) Q4 Earnings and Revenues Top Estimates
Orion Engineered Carbons (OEC) delivered earnings and revenue surprises of 62.50% and 30.97%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?
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Orion Engineered Carbons Announces Full Year and Fourth Quarter 2022 Financial Results
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced financial results for the full year and fourth quarter of 2022. Full Year 2022 Highlights Net sales of $2,030.9 million, up $484.1 million, year over year Net income of $106.2 million, down $28.5 million, year over year. Prior year included the Evonik cash settlement of $79.5 million Diluted EPS of $1.73, down $0.48, year over year. Prior year included the Evonik cash settlement of $1.
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Orion Achieves Gold Rating, Higher Sustainability Score From EcoVadis
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, announced today it has received a Gold medal rating from EcoVadis, an independent organization that assesses the performance of companies in a wide range of sustainability areas. Orion improved its score from the previous year, moving up from 72 to 77 points – just one point away from receiving a Platinum medal rating. The company is now in the 99th percentile of companies assessed by EcoVadis.
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Orion Sharply Reduces Air Emissions with New Technology at Borger, Texas, Plant
HOUSTON--( BUSINESS WIRE )--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, said today it will sharply reduce air emissions at its Borger, Texas, plant with new control technology.
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Orion Engineered Carbons Announces Full Year and Fourth Quarter 2022 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced that the company will release its full year and fourth quarter 2022 results after the market closes on Thursday, February 16, 2023, to be followed by a conference call on Friday, February 17, 2023, at 8:30 a.m. (EST). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the following numbers through February 24, 2023: U.S. Toll Free: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 13735260 Additionally, a live and archived webcast of the conference call will be available in the investor relations section of the company's website at orioncarbons.com. About Orion Engineered Carbons Orion Engineered Carbons (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability and add UV protection. Orion has innovation centers on three continents and 14 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. For more information, please visit orioncarbons.com.
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Orion Upgraded to “B” By Environmental Reporting Group CDP
HOUSTON--( BUSINESS WIRE )--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, announced today it was upgraded to a “B” score by the nonprofit organization CDP, recognizing Orion has addressed the environmental impact of its businesses and ensures good environmental management.
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Orion Engineered Carbons S.A. (OEC) Q3 2022 Earnings Call Transcript
Orion Engineered Carbons S.A. (NYSE:OEC ) Q3 2022 Earnings Conference Call November 4, 2022 8:30 AM ET Company Participants Wendy Wilson - Head of IR Corning Painter - CEO Jeffrey Glajch - CFO Conference Call Participants Josh Spector - UBS Jon Tanwanteng - CJS Securities Chris Kapsch - Loop Capital Operator Greetings.
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Orion Engineered Carbons Announces Share Repurchase Program
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, today announced that its Board of Directors has approved a share repurchase program with authorization to purchase up to $50 million of its outstanding common stock.
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Orion Engineered Carbons Announces Third Quarter Financial Results
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced financial results for the third quarter of 2022. Third Quarter 2022 Financial Highlights Net sales of $543.1 million, up $150.1 million, year over year Net income of $31.8 million, up $10.8 million, year over year Diluted earnings per share (“EPS”) of $0.52, up $0.17, year over year Adjusted Diluted EPS1 of $0.57, up $0.12, year over year Adjusted EBITDA1 of $80.5 million, up $14.1 million, year over year 1 The reconciliations of Non-U.S. GAAP (“GAAP”) measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures below. “I am pleased to announce that we exceeded $80 million of adjusted EBITDA for the third quarter in a row. At $80.5 million, results were up 21.2 percent year over year and gross profit per ton of $470.2 was up 12.8 percent. Looking ahead, we have laid a very solid foundation for expanded earnings and discretionary cash flow in 2023 and beyond. Despite the economic slowdown and the strong U.S. dollar, the team performed exceptionally well. First, our 2023 contract negotiations in our rubber business have been principally completed which should result in strong EBITDA growth next year. We have also completed our debottlenecking project, which was scheduled for late 2022. In addition, our new plant in Huaibei, China is on schedule for an early 2023 startup. Importantly, we have exceeded our contingency plan to reach a 15 percent natural gas consumption reduction in Europe,” said Corning Painter, Orion’s chief executive officer. “We look forward to continued expansion of EBITDA and expect to couple that with strong discretionary and free cash flow in 2023, as our growth projects take hold, pricing steps up and as we transition away from capital expenditures for U.S. air emissions projects. We are confident that 2023 will be an important year, as we generate much improved returns to shareholders,” Mr. Painter added. Third Quarter 2022 Overview: (In millions, except per share data or stated otherwise) Q3 2022 Q3 2021 Y/Y Change Y/Y Change in % Volume (kmt) 243.3 236.9 6.4 2.7% Net sales 543.1 393.0 150.1 38.2% Gross profit 114.4 98.7 15.7 15.9% Gross profit per metric ton 470.2 416.8 53.4 12.8% Income from operations 53.6 40.3 13.3 33.0% Net income 31.8 21.0 10.8 51.4% Adjusted EBITDA (1) 80.5 66.4 14.1 21.2% Basic EPS 0.52 0.35 0.17 48.6% Diluted EPS 0.52 0.35 0.17 48.6% Adjusted EPS(1) 0.57 0.45 0.12 26.7% (1) The reconciliations of these non-GAAP measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures. Volumes increased by 6.4 kmt, year over year, primarily due to higher demand in our Rubber Carbon Black segment, partially offset by lower volume in the Specialty Carbon Black segment. Net sales increased by $150.1 million, or 38.2%, year over year, driven primarily by passing through higher feedstock costs, pricing, favorable product mix in both segments and higher volume in Rubber Carbon Black segment, partially offset by the impact of unfavorable foreign currency translation and lower volume in Specialty Carbon Black segment. Gross profit increased by $15.7 million, or 15.9%, to $114.4 million, year over year, primarily due to pricing and favorable product mix. Income from operations increased by $13.3 million, or 33.0%, to $53.6 million, year over year, driven primarily by pricing, favorable product mix and higher volumes, partially offset by higher selling and general and administrative costs. Higher margins resulted from price realization to recover environmental and reliability-related capital expenditures. Adjusted EBITDA increased by $14.1 million, or 21.2%, to $80.5 million, year over year, primarily due to pricing, favorable product mix and higher volume in our Rubber Carbon Black segment, partially offset by lower sales volume in our Specialty Carbon Black segment and higher selling, general and administrative costs. Quarterly Business Segment Results SPECIALTY CARBON BLACK (In millions, unless stated otherwise) Q3 2022 Q3 2021 Y/Y Change Y/Y Change in % Volume (kmt) 52.3 63.9 (11.6) (18.2)% Net sales 169.6 150.2 19.4 12.9% Gross profit 44.8 51.6 (6.8) (13.2)% Gross profit per metric ton 856.6 807.5 49.1 6.1% Adjusted EBITDA 31.1 39.0 (7.9) (20.3)% Adjusted EBITDA/metric ton 594.6 610.7 (16.1) (2.6)% Adjusted EBITDA margin (%) 18.3% 26.0% (770)bps (29.6)% Net sales rose by $19.4 million, or 12.9%, to $169.6 million, year over year, primarily driven by pricing and favorable product mix, partially offset by lower sales volume and impact of unfavorable foreign currency translation. During the third quarter of 2022, Specialty Black volumes were lower primarily due to lower demand and price competition in lower-end markets. Adjusted EBITDA declined by $7.9 million, or 20.3%, to $31.1 million, year over year, primarily driven by lower sales volume, partially offset by higher margins and favorable product mix. Year over year, Adjusted EBITDA per ton decreased by $16.1 or 2.6%, to $594.6. Year over year, Adjusted EBITDA margin decreased 770 basis points to 18.3% primarily due to lower demand, higher fixed costs and price competition in lower-end markets, partially offset by higher margins and favorable product mix. RUBBER CARBON BLACK (In millions, unless stated otherwise) Q3 2022 Q3 2021 Y/Y Change Y/Y Change in % Volume (kmt) 191.0 173.0 18.0 10.4% Net sales 373.5 242.8 130.7 53.8% Gross profit 69.6 47.1 22.5 47.8% Gross profit per metric ton 364.4 272.3 92.1 33.8% Adjusted EBITDA 49.4 27.4 22.0 80.3% Adjusted EBITDA/metric ton 258.6 158.4 100.2 63.3% Adjusted EBITDA margin (%) 13.2% 11.3% 190bps 16.8% Rubber Carbon Black segment volumes increased by 18.0 kmt, or 10.4%, year over year, reflecting higher demand in Americas and Europe/Middle East/Africa. Net sales increased by $130.7 million, or 53.8%, to $373.5 million, year over year, primarily due to pricing, higher volume and favorable product mix, partially offset by the impact of unfavorable foreign currency translation. Rubber Adjusted EBITDA increased by $22.0 million, or 80.3%, to $49.4 million, year over year, driven by higher volume, pricing and product mix, partially offset by impact of unfavorable foreign currency translation and higher selling, general and administrative costs. Year over year, Adjusted EBITDA per ton increased by $100.2, or 63.3% to $258.6, year over year. Adjusted EBITDA margin rose 190 basis points to 13.2%, primarily due to the revenue impact from higher feedstock prices. Balance Sheet As of September 30, 2022, the company had total liquidity of $203.3 million, including cash and equivalents of $43.1 million, $130.3 million availability under our revolving credit facility, including ancillary lines and $29.9 million of capacity under other available credit lines. Net debt was $840.4 million and net leverage was 2.81x. Outlook “Our strategy in 2023 is clear. We believe we will achieve significant EBITDA growth next year based on our very strong rubber pricing cycle. A partial offset could be a further strengthening of the U.S. dollar and additional deterioration in the global economy that may affect demand for our specialty products, in particular. For 2022, we are projecting an Adjusted EBITDA range of $295 million to $310 million and Adjusted earnings per share range of $1.75 to $1.90. At the mid-point, Adjusted EBITDA would be up 13 percent despite the war in Ukraine, zero COVID in China, slowing global economies and the effects of a strong U.S. dollar. On a full year basis, the impact of a stronger U.S. dollar is approximately $25 million. In the 2023 tire contract negotiations we improved pricing, volumes and payment terms. For pricing alone, we expect rubber gross profit per ton to increase by $80 to $100,” Mr. Painter concluded. Conference Call As previously announced, Orion will hold a conference call tomorrow, Friday, November 4, 2022, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follows: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the following numbers through Friday, November 11, 2022: U.S. Toll Free: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 13733158 Additionally, an archived webcast of the conference call will be available on the Investor Relations section of the company’s website at www.orioncarbons.com. To learn more about Orion, visit the company’s website at www.orioncarbons.com, where we regularly post information including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding our company, its businesses and the markets it serves. About Orion Engineered Carbons Orion Engineered Carbons (NYSE:OEC) is a global supplier of carbon black products including high-performance specialty gas blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks, and other carbon blacks that tint, colorize and enhance the performance of polymers, plastics, paints and coatings, inks and toners, textile fibers, adhesives and sealants, batteries, tires, and mechanical rubber goods, such as automotive belts and hoses. The company has over 125 years of history providing customized solutions from a network of 14 global production sites and is dedicated to responsible business practices that emphasize reliability, innovation and sustainability. For more information, please visit orioncarbons.com. Forward-Looking Statements This document contains and refers to certain forward-looking statements with respect to our financial condition, results of operations and business, including those in the “Outlook” and “Quarterly Business Segment Results” sections above. These statements constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among others, statements concerning the potential exposure to market risks, statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not limited to statements of historical or present facts or conditions. Forward-looking statements are typically identified by words such as “anticipate,” "assume," “assure,” “believe,” “confident,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “objectives,” “outlook,” “probably,” “project,” “will,” “seek,” “target” “to be,” and other words of similar meaning. These forward-looking statements include, without limitation, statements about the following matters: • our strategies for (i) strengthening our position in specialty carbon blacks and rubber carbon blacks, (ii) increasing our rubber carbon black margins and (iii) strengthening the competitiveness of our operations; • the ability to pay dividends at historical dividend levels or at all; • cash flow projections; • the installation of pollution control technology in our United States (“U.S.”) manufacturing facilities pursuant to the EPA consent decree described herein; • the outcome of any in-progress, pending or possible litigation or regulatory proceedings; our expectations regarding environmental-related costs and liabilities; • expectations regarding the performance of our industry and the global economy, including with respect to foreign currency rates; • the sufficiency of our cash on hand and cash provided by operating activities and borrowings to pay our operating expenses, satisfy our debt obligations and fund capital expenditures; • mitigating the impacts of the global outbreak of COVID-19 and variances thereof; • anticipated spending on, and the timely completion and anticipated impacts of, capital projects including growth projects and the construction of new plants; • our projections and expectations for pricing, financial results and performance in 2023 and beyond; • the status of contract negotiations with counterparties and the impact of new contracts on our growth; • the implementation of our natural gas and other raw material consumption reduction contingency plan; demand for our specialty products; and • our expectation that the markets we serve will continue to remain stable or grow. All these forward-looking statements are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain. Therefore, undue reliance should not be placed upon any forward-looking statements. There are important factors that could cause actual results to differ materially from those contemplated by such forward-looking statements. These factors include, among others: • the effects of the COVID-19 pandemic on our business and results of operations; • negative or uncertain worldwide economic conditions; • volatility and cyclicality in the industries in which we operate; • operational risks inherent in chemicals manufacturing, including disruptions due to technical difficulties, severe weather conditions or natural disasters; • our dependence on major customers and suppliers; unanticipated fluctuations in demand for our specialty products, including due to factors beyond our control; • our ability to compete in the industries and markets in which we operate; • our ability to address changes in the nature of future transportation and mobility concepts which may impact our customers and our business; • our ability to develop new products and technologies successfully and the availability of substitutes for our products; • our ability to implement our business strategies; • our ability to respond to changes in feedstock prices and quality; • our ability to realize benefits from investments, joint ventures, acquisitions or alliances; our ability to negotiate with counterparties on terms satisfactory to us and the satisfactory performance by such counterparties of their obligations to us; • our ability to realize benefits from planned plant capacity expansions and site development projects and the potential delays to such expansions and projects; • information technology systems failures, network disruptions and breaches of data security; • our relationships with our workforce, including negotiations with labor unions, strikes and work stoppages; • our ability to recruit or retain key management and personnel; • our exposure to political or country risks inherent in doing business in some countries; • any and all impacts from the Russian war against Ukraine and/or any escalation thereof as well as related energy shortages or other economic or physical impairments or disruptions; • geopolitical events in the European Union (“EU”), relations amongst the EU member states as well as future relations between the EU and other countries and organizations; • environmental, health and safety regulations, including nanomaterial and greenhouse gas emissions regulations, and the related costs of maintaining compliance and addressing liabilities; • possible future investigations and enforcement actions by governmental, supranational agencies or other organizations; • our operations as a company in the chemical sector, including the related risks of leaks, fires and toxic releases; • market and regulatory changes that may affect our ability to sell or otherwise benefit from co-generated energy; • litigation or legal proceedings, including product liability and environmental claims; • our ability to protect our intellectual property rights and know-how; • our ability to generate the funds required to service our debt and finance our operations; • fluctuations in foreign currency exchange and interest rates; • the availability and efficiency of hedging; • changes in international and local economic conditions, including with regard to the dollar and the euro, dislocations in credit and capital markets and inflation or deflation; • potential impairments or write-offs of certain assets; • required increases in our pension fund contributions; • the adequacy of our insurance coverage; • changes in our jurisdictional earnings mix or in the tax laws or accepted interpretations of tax laws in those jurisdictions; • challenges to our decisions and assumptions in assessing and complying with our tax obligations; and • potential difficulty in obtaining or enforcing judgments or bringing legal actions against Orion Engineered Carbons SA (a Luxembourg incorporated entity) in the U.S. You should not place undue reliance on forward-looking statements. We present certain financial measures that are not prepared in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies. These non-U.S. GAAP measures are Contribution margin, Contribution margin per metric ton, Adjusted EBITDA, Adjusted EPS, Net working capital and Capital expenditures. Adjusted EBITDA, Adjusted EPS, Contribution margin and Net working capital are not measures of performance under U.S. GAAP and should not be considered in isolation or construed as substitutes for Net sales, consolidated profit (loss) for the period, Income from operations, Gross profit or other U.S. GAAP measures as an indicator of our operations in accordance with U.S. GAAP. For a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP measures, see table titled Reconciliation of Non-GAAP to GAAP Financial Measures. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include those factors detailed under the captions “Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 and in Note Q, Commitments and Contingencies to our audited Consolidated Financial Statements regarding contingent liabilities, including litigation in the same Form 10-K, and in our quarterly reports on Form 10-Q and the unaudited Consolidated Financial Statements contained therein. It is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement - including those in the “Outlook” and “Quarterly Business Segment Results” sections above - as a result of new information, future events or other information, other than as required by applicable law. Reconciliation of Non-GAAP Financial Measures We present certain financial measures that are not prepared in accordance with GAAP or the accounting standards of any other jurisdiction and which may not be comparable to other similarly titled measures of other companies. These non-GAAP measures are, but are not limited to, Contribution Margin, Contribution Margin per metric ton (collectively, “Contribution Margins”), Adjusted EBITDA, Adjusted EPS, Net Working Capital and Capital Expenditures. We define Contribution Margin as revenue less variable costs (such as raw materials, packaging, utilities and distribution costs). We define Contribution Margin per metric ton as Contribution Margin divided by volume measured in metric tons. We define Adjusted EBITDA as Income from operations before depreciation and amortization, restructuring expenses, consulting fees related to Company strategy, gain related to legal settlement, and includes equity earnings (loss) in affiliated companies, net of tax. Adjusted EBITDA is used by our management to evaluate our operating performance and make decisions regarding allocation of capital, because it excludes the effects of items that have less bearing on the performance of our underlying core business. We define Net Working Capital as inventories plus current trade receivables minus trade payables. We define Capital Expenditures as cash paid for the acquisition of intangible assets and property, plant and equipment as shown in the Condensed Consolidated Financial Statements. We also use Segment Adjusted EBITDA Margin, which we define as Adjusted EBITDA for the relevant segment divided by the revenue for that segment. We use Adjusted EBITDA as an internal measure of performance to benchmark and compare performance among our own operations. We use these measures, together with other measures of performance under GAAP, to compare the relative performance of operations in planning, budgeting and reviewing the performance of our business. We believe these measures are useful measures of financial performance in addition to consolidated Net income for the period, Income from operations and other profitability measures under GAAP because they facilitate operating performance comparisons from period to period and company to company and, with respect to Contribution Margin, eliminate volatility in feedstock prices. By eliminating potential differences in results of operations between periods or companies caused by factors such as depreciation and amortization methods, historic cost and age of assets, financing and capital structures and taxation positions or regimes, Adjusted EBITDA provides a useful additional basis for comparing the current performance of the underlying operations being evaluated. For these reasons, EBITDA-based measures are often used by the investment community as a means of comparison of companies in our industry. By deducting variable costs (such as raw materials, packaging, utilities and distribution costs) from revenue, we believe that Contribution Margins can provide a useful basis for comparing the current performance of the underlying operations being evaluated by indicating the portion of revenue that is not consumed by these variable costs and therefore contributes to the coverage of all costs and profits. Different companies and analysts may calculate measures based on EBITDA, contribution margins and working capital differently, so making comparisons among companies on this basis should be done carefully. Adjusted EBITDA, Contribution Margins and Net Working Capital are not measures of performance under GAAP and should not be considered in isolation or construed as substitutes for Revenue, consolidated Net income for the period, Income from operations, Gross profit or other GAAP measures as an indicator of our operations in accordance with GAAP. Reconciliation of Non-GAAP to GAAP Financial Measures The following tables present a reconciliation of each of Adjusted EBITDA, Contribution margin and Contribution margin per metric ton, and Adjusted Earnings per shares (“EPS”) to the most directly comparable GAAP measure: Reconciliation of Adjusted EBITDA to Net income: Reconciliation of profit Third Quarter Nine Months Ended September 30, (In millions) 2022 2021 2022 2021 Net income $ 31.8 $ 21.0 $ 94.0 $ 133.6 Add back Income tax expense 11.7 6.7 38.3 48.5 Add back Equity in earnings of affiliated companies, net of tax (0.1 ) (0.1 ) (0.3 ) (0.5 ) Income before earnings in affiliated companies and income taxes 43.4 27.6 132.0 181.6 Add back Interest and other financial expense, net 10.2 11.5 29.1 30.4 Add back Reclassification of actuarial losses from AOCI — 1.2 — 3.6 Income from operations 53.6 40.3 161.1 215.6 Add back depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment 25.2 23.8 79.9 74.6 EBITDA 78.8 64.1 241.0 290.2 Equity in earnings of affiliated companies, net of tax 0.1 0.1 0.3 0.5 Evonik legal settlement — — — (82.9 ) Long term incentive plan 1.9 1.3 5.0 3.3 Other adjustment (0.3 ) 0.9 0.8 5.0 Adjusted EBITDA $ 80.5 $ 66.4 $ 247.1 $ 216.1 Reconciliation of Contribution margin and Contribution margin per metric ton to Gross profit: Third Quarter Nine Months Ended September 30, (In millions, unless otherwise indicated) 2022 2021 2022 2021 Revenue $ 543.1 $ 393.0 $ 1,568.8 $ 1,154.1 Variable costs 382.3 252.5 1,069.8 712.9 Contribution margin 160.8 140.5 499.0 441.2 Freight 24.4 23.3 77.6 69.8 Fixed costs (70.8 ) (65.1 ) (224.5 ) (199.7 ) Gross profit $ 114.4 $ 98.7 $ 352.1 $ 311.3 Volume (in kmt) 243.3 236.9 747.9 741.2 Contribution margin per metric ton $ 660.9 $ 593.1 $ 667.2 $ 595.3 Gross profit per metric ton $ 470.2 $ 416.8 $ 470.8 $ 420.0 Reconciliation of Adjusted EPS to Diluted EPS: Third Quarter Nine Months Ended September 30, (In millions, except per share amounts) 2022 2021 2022 2021 Net income $ 31.8 $ 21.0 $ 94.0 $ 133.6 add back long term incentive plan 1.9 1.3 5.0 3.3 add back other adjustment items (0.3 ) 0.9 0.8 5.0 add back reclassification of actuarial losses from AOCI — 1.2 — 3.6 add back amortization 1.6 2.0 5.3 6.0 less gain related to legal settlement — — — (82.9 ) add back foreign exchange rate impacts 0.4 0.7 2.5 5.2 add back amortization of transaction costs 0.6 2.7 1.4 3.8 Tax effect on add back items at estimated tax rate (1.4 ) (2.5 ) (4.6 ) 16.8 Adjusted net income $ 34.6 $ 27.3 $ 104.4 $ 94.4 Total add back items $ 2.8 $ 6.3 $ 10.4 $ (39.2 ) Impact add back items per share $ 0.05 $ 0.10 $ 0.17 $ (0.64 ) Earnings per share (diluted) $ 0.52 $ 0.35 $ 1.53 $ 2.20 Adjusted EPS (diluted) $ 0.57 $ 0.45 $ 1.70 $ 1.56 Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions, except share and per share amounts) 2022 2021 2022 2021 Net sales $ 543.1 $ 393.0 $ 1,568.8 $ 1,154.1 Cost of sales 428.7 294.3 1,216.7 842.8 Gross profit 114.4 98.7 352.1 311.3 Selling, general and administrative expenses 56.0 52.9 173.2 160.3 Research and development costs 4.5 5.7 15.9 16.4 Gain related to litigation settlement — — — (82.9 ) Other (income) expenses, net 0.3 (0.2 ) 1.9 1.9 Income from operations 53.6 40.3 161.1 215.6 Interest and other financial expense, net 10.2 11.5 29.1 30.4 Reclassification of actuarial losses from AOCI — 1.2 — 3.6 Income before earnings in affiliated companies and income taxes 43.4 27.6 132.0 181.6 Income tax expense 11.7 6.7 38.3 48.5 Earnings in affiliated companies, net of tax 0.1 0.1 0.3 0.5 Net income $ 31.8 $ 21.0 $ 94.0 $ 133.6 Weighted-average shares outstanding (in thousands): Basic 60,936 60,740 60,899 60,680 Diluted 61,215 60,840 61,314 60,756 Earnings per share: Basic $ 0.52 $ 0.35 $ 1.54 $ 2.20 Diluted $ 0.52 $ 0.35 $ 1.53 $ 2.20 Condensed Consolidated Statements of Financial Position (Unaudited) (In millions, except share amounts) September 30, 2022 December 31, 2021 ASSETS Current assets Cash and cash equivalents $ 43.1 $ 65.7 Accounts receivable, net 403.7 288.9 Inventories, net 266.7 229.8 Income tax receivables 6.9 12.1 Prepaid expenses and other current assets 70.3 68.5 Total current assets 790.7 665.0 Property, plant and equipment, net 732.1 707.9 Right-of-use assets 93.3 84.6 Goodwill 67.1 78.0 Intangible assets, net 26.9 36.3 Investment in equity method affiliates 4.4 5.3 Deferred income tax assets 57.8 50.4 Other assets 71.1 3.5 Total non-current assets 1,052.7 966.0 Total assets $ 1,843.4 $ 1,631.0 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 178.1 $ 195.1 Current portion of long term debt and other financial liabilities 261.0 151.7 Accrued liabilities 43.6 50.9 Income taxes payable 22.6 16.9 Other current liabilities 42.6 34.1 Total current liabilities 547.9 448.7 Long-term debt, net 618.2 631.2 Employee benefit plan obligation 64.6 74.4 Deferred income tax liabilities 86.9 61.8 Other liabilities 95.1 95.2 Total non-current liabilities 864.8 862.6 Stockholders' Equity Common stock Authorized: 65,035,579 and 65,035,579 shares with no par value Issued – 60,992,259 and 60,992,259 shares with no par value Outstanding – 60,815,588 and 60,656,076 shares 85.3 85.3 Treasury stock, at cost, 176,671 and 336,183 (4.7 ) (6.3 ) Additional paid-in capital 74.0 71.4 Retained earnings 306.8 217.8 Accumulated other comprehensive loss (30.7 ) (48.5 ) Total stockholders' equity 430.7 319.7 Total liabilities and stockholders' equity $ 1,843.4 $ 1,631.0 Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, (In millions) 2022 2021 Cash flows from operating activities: Net income $ 94.0 $ 133.6 Adjustments to reconcile Net income to Net cash provided by (used in) operating activities: Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets 79.9 74.6 Amortization of debt issuance costs 1.4 3.8 Share-based incentive compensation 5.0 3.3 Deferred tax (benefit) provision 2.8 (2.7 ) Foreign currency transactions (13.8 ) (9.0 ) Reclassification of actuarial losses from AOCI — 3.6 Other operating non-cash items, net (0.7 ) (2.4 ) Changes in operating assets and liabilities, net: Trade receivables (149.2 ) (75.7 ) Inventories (65.3 ) (58.0 ) Trade payables 20.0 12.6 Other provisions (2.0 ) 6.5 Income tax liabilities 13.6 30.9 Other assets and liabilities, net (2.4 ) 0.2 Net cash (used in)/provided by operating activities (16.7 ) 121.3 Cash flows from investing activities: Acquisition of intangible assets and property, plant and equipment (167.1 ) (113.7 ) Net cash used in investing activities (167.1 ) (113.7 ) Cash flows from financing activities: Proceeds from long-term debt borrowings 35.3 213.4 Repayments of long-term debt (2.3 ) (212.3 ) Payments for debt issue costs (1.5 ) (2.8 ) Cash inflows related to current financial liabilities 201.6 81.4 Cash outflows related to current financial liabilities (61.7 ) (87.3 ) Dividends paid to shareholders (3.8 ) — Other financing activities (0.2 ) — Net cash provided by (used in) financing activities 167.4 (7.6 ) Increase (decrease) in cash, cash equivalents and restricted cash (16.4 ) — Cash, cash equivalents and restricted cash at the beginning of the period 68.5 67.9 Effect of exchange rate changes on cash (5.5 ) (2.8 ) Cash, cash equivalents and restricted cash at the end of the period 46.6 65.1 Less restricted cash at the end of the period 3.5 2.8 Cash and cash equivalents at the end of the period $ 43.1 $ 62.3
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Orion First to Earn ISCC PLUS Certification for Various Grades From Multiple Plants
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemicals company, said today it has reached a major sustainability milestone, becoming the first to achieve International Sustainability and Carbon Certifications (ISCC Plus) for multiple carbon black grades made from different feedstocks at plants in two regions of the world.
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Orion Engineered Carbons Announces Third Quarter 2022 Earnings Release Date and Conference Call Information
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced that the company will release its third quarter 2022 results after the market closes on Thursday, November 3, 2022, to be followed by a conference call on Friday, November 4, 2022, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follow: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the
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HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemicals company, announced today that Chief Executive Officer Corning Painter and Chief Financial Officer Jeff Glajch will participate in a Fireside Chat at the 35th Annual Credit Suisse Specialties and Basics Conference in New York on September 13 at 1:15 pm EDT. Click here to access the audio link on the company's website. A transcript will also be available on the site following the conference. About Orion Engineer
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Orion Engineered Carbons to Increase Specialty Carbon Black Prices Produced in Europe
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, today announced it will raise prices for all specialty carbon black grades produced in Europe. The increase will be communicated individually to customers and will vary depending on the product, manufacturing process and location. “These price adjustments will ensure that Orion continues to supply the differentiated, high quality specialty products customers want during this period of rising na
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Orion Engineered Carbons S.A. (OEC) CEO Corning Painter on Q2 2022 Results - Earnings Call Transcript
Orion Engineered Carbons S.A. (NYSE:OEC ) Q2 2022 Earnings Conference Call August 5, 2022 8:30 AM ET Company Participants Wendy Wilson - Head of IR Corning Painter - CEO Jeffrey Glajch - CFO Conference Call Participants Josh Spector - UBS Jon Tanwanteng - CJS Securities Operator Greetings, and welcome to the Orion Engineered Carbons Second Quarter 2022 Earnings Conference Call.
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Orion Engineered Carbons: Improvements In Mobility Could Bring The Price Up
Orion Engineered Carbons supplies carbon black, which is a solid form of carbon sold as powder or pellets. The company's collaborations with customers will likely help offer beneficial products. Let's keep in mind that Orion uses tests in its laboratories that are also performed by clients.
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Orion Engineered Carbons Announces Second Quarter Financial Results
HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons (NYSE: OEC), a specialty chemical company, today announced financial results for the second quarter of 2022. Second Quarter 2022 Financial Highlights Net sales of $541.2 million, up $140.2 million, year over year Net income of $29.7 million, down $59.4 million, year over year; prior year includes $79.5 million cash for Evonik settlement Diluted EPS of $0.49, down $0.98, year over year; prior year includes $79.5 million cash for Evonik settlement Adjusted EPS1 of $0.58, down $0.04, year over year Record Adjusted EBITDA1 of $83.4 million, up $4.6 million, year over year 1 The reconciliations of Non-U.S. GAAP (“GAAP”) measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures below. Recent News Held first investor day - shared pathway to $500 million mid-cycle Adjusted EBITDA capacity by 2025 Expanded Senior Secured Revolving Credit Facility by €100 million to €350 million Announced the early 2023 completion of a gas black expansion to meet historical and continuous high demand “Orion’s record second quarter and first half results reflect a step-up in our earnings capacity with more to come. Our Huaibei greenfield project, significant debottlenecking projects and our acetylene project in the U.S. will contribute further over the coming 12 to 24 months. The team overcame the effects of a strong U.S. dollar, carbon black oil challenges in Eastern Europe, ongoing shipping challenges and inflationary pressures to increase Adjusted EBITDA by 5.8 percent, with both businesses performing extremely well,” said Corning Painter, Orion’s chief executive officer. “We are determined to find opportunities during the current dynamic market conditions and have positioned ourselves to profit from several underlying trends. Carbon black remains in tight supply in Europe and the Americas. The 2023 pricing negotiations are going well, with several negotiations now principally complete and the drivers for conductive carbon additives continue to grow. With our capital expenditures transitioning away from U.S. air emissions compliance to high return projects in the next 12 months, we are well positioned to continue to grow our EBITDA and, starting in 2023, to generate strong discretionary cash flows further driving profitability, sustainability and returns to shareholders,” said Mr. Painter. Second Quarter 2022 Overview: (In millions, except per share data or stated otherwise) Q2 2022 Q2 2021 Y/Y Change Y/Y Change in % Volume (kmt) 251.4 250.3 1.1 0.4% Net sales 541.2 401.0 140.2 35.0% Gross profit 119.8 110.1 9.7 8.8% Gross profit per metric ton 476.5 439.8 36.7 8.3% Income from operations 52.9 132.5 (79.6) 60.1% Net income 29.7 89.1 (59.4) 66.7% Adjusted EBITDA (1) 83.4 78.8 4.6 5.8% Basic EPS 0.49 1.47 (0.98) (66.7)% Diluted EPS 0.49 1.47 (0.98) (66.7)% Adjusted EPS(1) 0.58 0.62 (0.04) (6.5)% (1) The reconciliations of these non-GAAP measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures. Volumes increased by 1.1 kmt, year over year, primarily due to higher demand in our Rubber Carbon Black segment, partially offset by lower volume in the Specialty Carbon Black segment. Net sales increased by $140.2 million, or 35.0%, year over year, driven primarily by passing through of higher feedstock costs, pricing, favorable product mix in both segments and higher volume in Rubber Carbon Black segment, partially offset by the impact of unfavorable foreign currency translation and lower volume in Specialty Carbon Black segment. Gross profit increased by $9.7 million, or 8.8%, to $119.8 million, year over year, primarily due to pricing and favorable product mix. Income from operations decreased by $79.6 million, or 60.1%, to $52.9 million, year over year, driven primarily by the Evonik settlement related gain of $82.9 million in the prior period and higher selling and general and administrative costs, partially offset by pricing, favorable product mix and higher volumes. Higher margins resulted from price realization to recover environmental and reliability-related capital expenditures. Adjusted EBITDA increased by $4.6 million, or 5.8%, to $83.4 million, year over year, primarily due to pricing, favorable product mix and higher volume in our Rubber Carbon Black segment, partially offset by lower sales volume in our Specialty Carbon Black segment and higher selling, general and administrative costs. Quarterly Business Segment Results SPECIALTY CARBON BLACK (In millions, unless stated otherwise) Q2 2022 Q2 2021 Y/Y Change Y/Y Change in % Volume (kmt) 59.7 68.1 (8.4) (12.3)% Net sales 181.9 156.3 25.6 16.4% Gross profit 60.6 53.0 7.6 14.3% Gross profit per metric ton 1,015.1 779.2 235.9 30.3% Adjusted EBITDA 45.4 39.3 6.1 15.5% Adjusted EBITDA/metric ton 760.5 578.3 182.2 31.5% Adjusted EBITDA margin (%) 25.0% 25.2% (20)bps (0.8)% Net sales rose by $25.6 million, or 16.4%, to $181.9 million, year over year, primarily driven by pricing and favorable product mix, partially offset by lower sales volume and impact of unfavorable foreign currency translation. During the second quarter of 2022, Specialty Black volumes were lower primarily due to lower demand and price competition in lower-end markets. Adjusted EBITDA rose by $6.1 million, or 15.5%, to $45.4 million, year over year, primarily driven by higher margins and favorable product mix, partially offset by lower sales volume and higher selling, general and administrative costs. Year over year, Adjusted EBITDA per ton increased by $182.2 or 31.5%, to $760.5. Year over year, Adjusted EBITDA margin is comparable despite higher feedstock prices. Margins per ton increased due to price realization to recover environmental and reliability-related capital expenditures. RUBBER CARBON BLACK (In millions, unless stated otherwise) Q2 2022 Q2 2021 Y/Y Change Y/Y Change in % Volume (kmt) 191.7 182.2 9.5 5.2% Net sales 359.3 244.7 114.6 46.8% Gross profit 59.2 57.1 2.1 3.7% Gross profit per metric ton 308.8 313.0 (4.2) (1.3)% Adjusted EBITDA 38.0 39.5 (1.5) (3.8)% Adjusted EBITDA/metric ton 198.2 216.5 (18.3) (8.4)% Adjusted EBITDA margin (%) 10.6% 16.1% (550)bps (34.2)% Rubber Carbon Black segment volumes increased by 9.5 kmt, or 5.2%, year over year, reflecting higher demand in Americas and Europe/Middle East/Africa (“EMEA”). Net sales increased by $114.6 million, or 46.8%, to $359.3 million, year over year, primarily due to passing through of higher feedstock costs, pricing, higher volume and favorable product mix, partially offset by the impact of unfavorable foreign currency translation. Rubber Adjusted EBITDA declined by $1.5 million, or 3.8%, to $38.0 million, year over year, driven by the impact of unfavorable foreign currency translation and higher selling, general and administrative costs, partially offset by pricing, product mix and higher volume. Year over year, Adjusted EBITDA per ton decreased by $18.3, or 8.4% to $198.2, year over year, reflecting dilution from pass through of higher input costs. Adjusted EBITDA margin decreased 550 basis points to 10.6%, primarily due to the revenue impact from higher feedstock prices. Margins per ton decreased due to dilution from pass through of higher input costs. Balance Sheet As of June 30, 2022, the company had total liquidity of $228.2 million, including cash and equivalents of $40.9 million, $155.6 million availability under our revolving credit facility, including ancillary lines, and $31.7 million of capacity under other available credit lines. Net debt was $846.5 million and net leverage was 2.97x. Outlook “The second half of 2022 will be busy for us. We are on track to complete the air emission controls work in Borger, Texas, complete the mechanical phase of our greenfield plant in Huaibei, complete a meaningful debottlenecking project and we are working hard on shifting European reactors to away from natural gas firing. We co-generate electricity and/or provide community heating at all of our European sites that use natural gas, so there is a good case for us being exempted from curtailments. Nonetheless, we are working hard to meet the 15 percent voluntary natural gas reduction target promoted by the E.U. and protect our business. We are confirming our Adjusted EBITDA range of $310 million to $340 million and Adjusted earnings per share range of $2.00 to $2.35 per share,” Mr. Painter concluded. Conference Call As previously announced, Orion will hold a conference call tomorrow, Friday, August 5, 2022, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follows: U.S. Toll Free: 1-877-407-4018 International: 1-201-689-8471 A replay of the conference call may be accessed by phone at the following numbers through August 12, 2022: U.S. Toll Free: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 13731069 Additionally, an archived webcast of the conference call will be available on the Investor Relations section of the company’s website at www.orioncarbons.com. To learn more about Orion, visit the company’s website at www.orioncarbons.com, where we regularly post information including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding our company, its businesses and the markets it serves. About Orion Engineered Carbons Orion Engineered Carbons (NYSE:OEC) is a global supplier of carbon black products including high-performance specialty gas blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks, and other carbon blacks that tint, colorize and enhance the performance of polymers, plastics, paints and coatings, inks and toners, textile fibers, adhesives and sealants, batteries, tires, and mechanical rubber goods, such as automotive belts and hoses. The company has over 125 years of history providing customized solutions from a network of 14 global production sites and is dedicated to responsible business practices that emphasize reliability, innovation and sustainability. For more information, please visit orioncarbons.com. Forward-Looking Statements This document contains and refers to certain forward-looking statements with respect to our financial condition, results of operations and business, including those in the “Outlook” and “Quarterly Business Segment Results” sections above. These statements constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among others, statements concerning the potential exposure to market risks, statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not limited to statements of historical or present facts or conditions. Forward-looking statements are typically identified by words such as “anticipate,” "assume," “assure,” “believe,” “confident,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “objectives,” “outlook,” “probably,” “project,” “will,” “seek,” “target” “to be,” and other words of similar meaning. These forward-looking statements include, without limitation, statements about the following matters: • our strategies for (i) mitigating the impacts of the global outbreak of the Coronavirus, (ii) strengthening our position in specialty carbon blacks and rubber carbon blacks, (iii) increasing our rubber carbon black margins and (iv) strengthening the competitiveness of our operations; • the ability to pay dividends at historical dividend levels or at all; • cash flow projections; • the installation of pollution control technology in our United States (“U.S.”) manufacturing facilities pursuant to the EPA consent decree described herein; • the outcome of any in-progress, pending or possible litigation or regulatory proceedings; and • our expectation that the markets we serve will continue to grow. All these forward-looking statements are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain. Therefore, undue reliance should not be placed upon any forward-looking statements. There are important factors that could cause actual results to differ materially from those contemplated by such forward-looking statements. These factors include, among others: • the effects of the COVID-19 pandemic on our business and results of operations; • negative or uncertain worldwide economic conditions; • volatility and cyclicality in the industries in which we operate; • operational risks inherent in chemicals manufacturing, including disruptions due to technical difficulties, severe weather conditions or natural disasters; • our dependence on major customers and suppliers; • our ability to compete in the industries and markets in which we operate; • our ability to address changes in the nature of future transportation and mobility concepts which may impact our customers and our business; • our ability to develop new products and technologies successfully and the availability of substitutes for our products; • our ability to implement our business strategies; • volatility in the costs and availability of raw materials and energy as a result of the ongoing Russia and Ukraine conflict; • our ability to respond to changes in feedstock prices and quality; • our ability to realize benefits from investments, joint ventures, acquisitions or alliances; • our ability to realize benefits from planned plant capacity expansions and site development projects and the potential delays to such expansions and projects; • information technology systems failures, network disruptions and breaches of data security; • our relationships with our workforce, including negotiations with labor unions, strikes and work stoppages; • our ability to recruit or retain key management and personnel; • our exposure to political or country risks inherent in doing business in some countries; • any and all impacts from the Russian war against the Ukraine and/or any escalation thereof as well as related energy shortages or other economic or physical impairments or disruptions; • geopolitical events in the European Union (“EU”), relations amongst the EU member states as well as future relations between the EU and other countries and organizations; • environmental, health and safety regulations, including nanomaterial and greenhouse gas emissions regulations, and the related costs of maintaining compliance and addressing liabilities; • possible future investigations and enforcement actions by governmental, supranational agencies or other organizations; • our operations as a company in the chemical sector, including the related risks of leaks, fires and toxic releases; • market and regulatory changes that may affect our ability to sell or otherwise benefit from co-generated energy; • litigation or legal proceedings, including product liability and environmental claims; • our ability to protect our intellectual property rights and know-how; • our ability to generate the funds required to service our debt and finance our operations; • fluctuations in foreign currency exchange and interest rates; • the availability and efficiency of hedging; • changes in international and local economic conditions, including with regard to the dollar and the euro, dislocations in credit and capital markets and inflation or deflation; • potential impairments or write-offs of certain assets; • required increases in our pension fund contributions; • the adequacy of our insurance coverage; • changes in our jurisdictional earnings mix or in the tax laws or accepted interpretations of tax laws in those jurisdictions; • challenges to our decisions and assumptions in assessing and complying with our tax obligations; and • potential difficulty in obtaining or enforcing judgments or bringing legal actions against Orion Engineered Carbons SA (a Luxembourg incorporated entity) in the U.S. You should not place undue reliance on forward-looking statements. We present certain financial measures that are not prepared in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies. These non-U.S. GAAP measures are Contribution margin, Contribution margin per metric ton, Adjusted EBITDA, Adjusted EPS, Net working capital and Capital expenditures. Adjusted EBITDA, Adjusted EPS, Contribution margin and Net working capital are not measures of performance under U.S. GAAP and should not be considered in isolation or construed as substitutes for net sales, consolidated profit (loss) for the period, Income from operations, Gross profit or other U.S. GAAP measures as an indicator of our operations in accordance with U.S. GAAP. For a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP measures, see table titled Reconciliation of Non-GAAP to GAAP Financial Measures. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include those factors detailed under the captions “Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 and in Note Q, Commitments and Contingencies. to our audited Consolidated Financial Statements regarding contingent liabilities, including litigation in the same 10-K. It is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement - including those in the “Outlook” and “Quarterly Business Segment Results” sections above - as a result of new information, future events or other information, other than as required by applicable law. Reconciliation of Non-GAAP Financial Measures We present certain financial measures that are not prepared in accordance with GAAP or the accounting standards of any other jurisdiction and which may not be comparable to other similarly titled measures of other companies. These non-GAAP measures are, but are not limited to, Contribution Margin, Contribution Margin per metric ton (collectively, “Contribution Margins”), Adjusted EBITDA, Net Working Capital and Capital Expenditures. We define Contribution Margin as revenue less variable costs (such as raw materials, packaging, utilities and distribution costs). We define Contribution Margin per metric ton as Contribution Margin divided by volume measured in metric tons. We define Adjusted EBITDA as Income from operations before depreciation and amortization, restructuring expenses, consulting fees related to Company strategy, gain related to legal settlement, and includes equity earnings (loss) in affiliated companies, net of tax. Adjusted EBITDA is used by our management to evaluate our operating performance and make decisions regarding allocation of capital, because it excludes the effects of items that have less bearing on the performance of our underlying core business. We define Net Working Capital as inventories plus current trade receivables minus trade payables. We define Capital Expenditures as cash paid for the acquisition of intangible assets and property, plant and equipment as shown in the Condensed Consolidated Financial Statements. We also use Segment Adjusted EBITDA Margin, which we define as Adjusted EBITDA for the relevant segment divided by the revenue for that segment. We use Adjusted EBITDA as an internal measure of performance to benchmark and compare performance among our own operations. We use these measures, together with other measures of performance under GAAP, to compare the relative performance of operations in planning, budgeting and reviewing the performance of our business. We believe these measures are useful measures of financial performance in addition to consolidated Net income for the period, Income from operations and other profitability measures under GAAP because they facilitate operating performance comparisons from period to period and company to company and, with respect to Contribution Margin, eliminate volatility in feedstock prices. By eliminating potential differences in results of operations between periods or companies caused by factors such as depreciation and amortization methods, historic cost and age of assets, financing and capital structures and taxation positions or regimes, Adjusted EBITDA provides a useful additional basis for comparing the current performance of the underlying operations being evaluated. For these reasons, EBITDA-based measures are often used by the investment community as a means of comparison of companies in our industry. By deducting variable costs (such as raw materials, packaging, utilities and distribution costs) from revenue, we believe that Contribution Margins can provide a useful basis for comparing the current performance of the underlying operations being evaluated by indicating the portion of revenue that is not consumed by these variable costs and therefore contributes to the coverage of all costs and profits. Different companies and analysts may calculate measures based on EBITDA, contribution margins and working capital differently, so making comparisons among companies on this basis should be done carefully. Adjusted EBITDA, Contribution Margins and Net Working Capital are not measures of performance under GAAP and should not be considered in isolation or construed as substitutes for Revenue, consolidated Net income for the period, Income from operations, Gross profit or other GAAP measures as an indicator of our operations in accordance with GAAP. Reconciliation of Non-GAAP to GAAP Financial Measures The following tables present a reconciliation of each of Adjusted EBITDA, Contribution margin and Contribution margin per metric ton and Adjusted Earnings per shares (“EPS”) to the most directly comparable GAAP measure: Reconciliation of Adjusted EBITDA to Net income: Reconciliation of profit Second Quarter Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Net income $ 29.7 $ 89.1 $ 62.2 $ 112.6 Add back Income tax expense 12.8 33.5 26.6 41.8 Add back Equity in earnings of affiliated companies, net of tax (0.1 ) (0.3 ) (0.2 ) (0.4 ) Income before earnings in affiliated companies and income taxes 42.4 122.3 88.6 154.0 Add back Interest and other financial expense, net 10.5 9.0 18.9 18.9 Add back Reclassification of actuarial losses from AOCI — 1.2 — 2.4 Income from operations 52.9 132.5 107.5 175.3 Add back depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment 27.4 25.2 54.7 50.8 EBITDA 80.3 157.7 162.2 226.1 Equity in earnings of affiliated companies, net of tax 0.1 0.3 0.2 0.4 Evonik legal settlement: Cash settlement — (79.5 ) — (79.5 ) Release of legal reserve, net — (3.4 ) — (3.4 ) Long term incentive plan 1.6 1.2 3.1 2.2 Other adjustment 1.4 2.5 1.1 3.9 Adjusted EBITDA $ 83.4 $ 78.8 $ 166.6 $ 149.7 Reconciliation of Contribution margin and Contribution margin per metric ton to Gross profit: Second Quarter Six Months Ended June 30, (In millions, unless otherwise indicated) 2022 2021 2022 2021 Revenue $ 541.2 $ 401.0 $ 1,025.7 $ 761.1 Variable costs 370.3 247.4 687.5 460.4 Contribution margin 170.9 153.6 338.2 300.7 Freight 25.8 24.0 53.2 46.5 Fixed costs (76.9 ) (67.5 ) (153.7 ) (134.6 ) Gross profit $ 119.8 $ 110.1 $ 237.7 $ 212.6 Volume (in kmt) 251.4 250.3 504.6 504.4 Contribution margin per metric ton $ 679.8 $ 613.9 $ 670.2 $ 596.2 Gross profit per metric ton $ 476.5 $ 439.8 $ 471.1 $ 421.5 Reconciliation of Adjusted EPS to Basic EPS: Second Quarter Six Months Ended June 30, (In millions, except per share amounts) 2022 2021 2022 2021 Net income $ 29.7 $ 89.1 $ 62.2 $ 112.6 add back long term incentive plan 1.6 1.2 3.1 2.2 add back other adjustment items 1.4 2.5 1.1 3.9 add back reclassification of actuarial losses from AOCI — 1.2 — 2.4 add back amortization 1.8 2.0 3.7 4.0 less gain related to legal settlement — (82.9 ) — (82.9 ) add back foreign exchange rate impacts 2.7 1.3 2.1 4.5 add back amortization of transaction costs 0.4 0.6 0.8 1.1 Tax effect on add back items at estimated tax rate (2.3 ) 22.2 (3.2 ) 19.4 Adjusted net income $ 35.3 $ 37.2 $ 69.8 $ 67.2 Total add back items $ 5.6 $ (51.9 ) $ 7.6 $ (45.4 ) Impact add back items per share $ 0.09 $ (0.85 ) $ 0.13 $ (0.75 ) Earnings per share (basic) $ 0.49 $ 1.47 $ 1.02 $ 1.86 Adjusted EPS $ 0.58 $ 0.62 $ 1.15 $ 1.11 Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except share and per share amounts) 2022 2021 2022 2021 Net sales $ 541.2 $ 401.0 $ 1,025.7 $ 761.1 Cost of sales 421.4 290.9 788.0 548.5 Gross profit 119.8 110.1 237.7 212.6 Selling, general and administrative expenses 59.7 55.0 117.2 107.4 Research and development costs 5.9 6.0 11.4 10.7 Gain related to litigation settlement — (82.9 ) — (82.9 ) Other (income) expenses, net 1.3 (0.5 ) 1.6 2.1 Income from operations 52.9 132.5 107.5 175.3 Interest and other financial expense, net 10.5 9.0 18.9 18.9 Reclassification of actuarial losses from AOCI — 1.2 — 2.4 Income before earnings in affiliated companies and income taxes 42.4 122.3 88.6 154.0 Income tax expense 12.8 33.5 26.6 41.8 Earnings in affiliated companies, net of tax 0.1 0.3 0.2 0.4 Net income $ 29.7 $ 89.1 $ 62.2 $ 112.6 Weighted-average shares outstanding (in thousands): Basic 60,807 60,652 60,880 60,649 Diluted 61,010 60,743 61,237 60,721 Earnings per share: Basic $ 0.49 $ 1.47 $ 1.02 $ 1.86 Diluted $ 0.49 $ 1.47 $ 1.02 $ 1.85 Condensed Consolidated Statements of Financial Position (Unaudited) (In millions, except share amounts) June 30, 2022 December 31, 2021 ASSETS Current assets Cash and cash equivalents $ 40.9 $ 65.7 Accounts receivable, net 409.4 288.9 Inventories, net 285.3 229.8 Income tax receivables 7.1 12.1 Prepaid expenses and other current assets 68.9 68.5 Total current assets 811.6 665.0 Property, plant and equipment, net 728.2 707.9 Right-of-use assets 93.5 84.6 Goodwill 71.5 78.0 Intangible assets, net 30.2 36.3 Investment in equity method affiliates 4.6 5.3 Deferred income tax assets 61.4 50.4 Other assets 46.5 3.5 Total non-current assets 1,035.9 966.0 Total assets $ 1,847.5 $ 1,631.0 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 218.3 $ 195.1 Current portion of long term debt and other financial liabilities 263.1 151.7 Accrued liabilities 41.2 50.9 Income taxes payable 18.0 16.9 Other current liabilities 41.0 34.1 Total current liabilities 581.6 448.7 Long-term debt, net 619.6 631.2 Employee benefit plan obligation 68.9 74.4 Deferred income tax liabilities 86.8 61.8 Other liabilities 95.4 95.2 Total non-current liabilities 870.7 862.6 Stockholders' Equity Common stock Authorized: 65,035,579 and 65,035,579 shares with no par value Issued – 60,992,259 and 60,992,259 shares with no par value Outstanding – 60,749,265 and 60,656,076 shares 85.3 85.3 Treasury stock, at cost, 242,994 and 336,183 (4.7 ) (6.3 ) Additional paid-in capital 72.1 71.4 Retained earnings 276.3 217.8 Accumulated other comprehensive loss (33.8 ) (48.5 ) Total stockholders' equity 395.2 319.7 Total liabilities and stockholders' equity $ 1,847.5 $ 1,631.0 Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (In millions) 2022 2021 Cash flows from operating activities: Net income $ 62.2 $ 112.6 Adjustments to reconcile Net income to Net cash provided by (used in) operating activities: Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets 54.7 50.8 Amortization of debt issuance costs 0.8 1.1 Share-based incentive compensation 3.1 2.2 Deferred tax (benefit) provision 4.1 (1.7 ) Foreign currency transactions (13.4 ) (7.4 ) Reclassification of actuarial losses from AOCI — 2.4 Other operating non-cash items, net (0.9 ) (3.0 ) Changes in operating assets and liabilities, net: Trade receivables (137.8 ) (71.0 ) Inventories (68.7 ) (46.2 ) Trade payables 46.1 10.8 Other provisions (6.9 ) (1.3 ) Income tax liabilities 7.2 32.5 Other assets and liabilities, net (1.4 ) 3.3 Net cash (used in)/provided by operating activities (50.9 ) 85.1 Cash flows from investing activities: Acquisition of intangible assets and property, plant and equipment (108.7 ) (58.3 ) Net cash used in investing activities (108.7 ) (58.3 ) Cash flows from financing activities: Proceeds from long-term debt borrowings 17.2 — Repayments of long-term debt (1.5 ) (4.2 ) Payments for debt issue costs (0.8 ) — Cash inflows related to current financial liabilities 178.3 36.4 Cash outflows related to current financial liabilities (52.2 ) (48.8 ) Dividends paid to shareholders (2.5 ) — Other financing activities (0.4 ) — Net cash provided by (used in) financing activities 138.1 (16.6 ) Increase (decrease) in cash, cash equivalents and restricted cash (21.5 ) 10.2 Cash, cash equivalents and restricted cash at the beginning of the period 68.5 67.9 Effect of exchange rate changes on cash (2.5 ) (1.1 ) Cash, cash equivalents and restricted cash at the end of the period 44.5 77.0 Less restricted cash at the end of the period 3.6 2.9 Cash and cash equivalents at the end of the period $ 40.9 $ 74.1
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