Houston, Texas – Orion Engineered Carbons has revised down its full year earnings forecast on challenging macroeconomic environment, particularly in the automotive markets.
“For the second half of the year, we anticipate that customers will continue running at conservative production and inventory levels for the remainder of 2019,” said CEO Corning Painter announcing second quarter results 1 Aug.
The company has lowered earnings (adjusted EBITDA) forecast for 2019 to the range of $265 - $285 million (€240 - €257 million), from the previous guidance of $280 million to $300 million.
The revised guidance takes in to account negative effect of product mix in the speciality segment, as well as the negative impact of feedstock differentials in both rubber and speciality units, Painter added.
With this economic backdrop, Painter said Orion would continue to focus on “actions within our control.”
These include improving profit, working on pricing, gaining qualifications on new products, and debottlenecking targeted products.