Luxembourg – Orion Engineered Carbons has reported a €44.1-million drop in revenue to €246.3 million in the first quarter of 2016 fiscal year.
The lower revenue was despite a nearly 10-percent rise in volumes from 252.9 kt to 277.8 kt in both speciality and rubber segments.
"We began 2016 much like we finished 2015, with a strong quarter characterised by near double-digit volume growth that outpaced the market, robust cash flow, exceptional performance from our speciality business and reasonably good results from the rubber business in very challenging market environments"
Adjusted earnings (EBITDA) was on a par with the first quarter in 2015 at €54 million, despite the negative impact of approximately €3 million associated with feedstock cost developments, and a negative impact of about €1.7 million associated mostly with currency effects.
Commenting on the results, CEO Jack Clem said Orion would continue to “take steps to address the negative effects of low oil price environment on our Rubber business”.
Rubber carbon black business, he added, was going through “difficult market conditions”.
“On the rubber side, we will continue to work with our major tire customers to address imbalances between feedstock costs and product pricing,” Clem added.
According to the Orion boss, the company will also implement productivity and efficiency measures and “shift production capacity, as necessary, to more profitable technical rubber grades such as those sold to the MRG markets”.