Houston, Texas – A consolidation programme in South Korea and unfavourable currency rates have impacted first quarter results within Orion Engineered Carbons’ rubber blacks division.
Although higher than the previous quarter, volumes fell by 18.2 kilotonnes, or 8.4% year-on-year, mainly due to the repurposing of production lines in Korea.
The decline was also attributable to reduced mechanical rubber goods volumes in China and to a lesser extent in Europe, Orion said 2 May.
Revenue decreased 4.5% to $253.1 million (€226.5 million), primarily due to lower volumes and negative foreign exchange rate translation effects.
Pass-through of higher feedstock costs to customers and base price increases partially offset lower income.
Similarly, plant consolidation and currency rates negatively impacted gross profit by 3.2% to $56.6 million, Orion added.
Adjusted EBITDA fell 1.4% to $35.2 million reflecting the development of gross profit, the company further stated.