Houston, Texas – Orion Engineered Carbons has witnessed growth in its rubber carbon black segment, due to price increases, stable volumes and an improved mechanical rubber goods mix.
Net sales increased 4.3% to $259.7 million (€231 million) in the second quarter, primarily due to the pass through of higher feedstock costs to customers, base price and surcharge increases, Orion reported 1 Aug.
The gains were, however, offset by lower volumes and negative foreign exchange rate translation effects.
During the three months to end of June, gross profit increased 9.0% to $59.6 million as a result of base price increases, partially offset by currency impact and feedstock differentials.
Segment earnings (adjusted EBITDA) rose 12.7% to $40.5 million in the second quarter, reflecting higher gross profit.
Orion’s speciality blacks segment registered a 31.4% decline in earnings at $31.0 million, on 2.4% lower net sales of $139.3 million in the second quarter.
The company has attributed the decline mainly to a weaker mix and negative foreign exchange rate translation effects
“Despite these tougher market conditions, our rubber carbon black business performed very well delivering record quarterly results with growth in adjusted EBITDA,” said CEO Corning Painter.
In spite of the growth, Painter noted, the unit remains short of earning its cost of capital.
“As a result, we have implemented surcharges and announced price increases to continue the upward progression of this business segment to financially satisfactory results,” he added.