Orion earnings surpass pre-pandemic levels

Houston, Texas – Orion Engineered Carbons SA has reported one of its highest quarterly adjusted earnings (EBITDA) since 2014, helped by improved volumes across both rubber and speciality carbon black segments.

Rubber carbon black volumes increased by 74.8 kilotonnes, or 69.6%, year-over-year, reflecting the broader global economic recovery across all regions, Orion said 5 Aug.

Segment sales more than doubled to $244.7 million (€207 million), from $108 million reported last year, reflecting higher sales volume, favourable product mix, and passing through higher feedstock costs.

Adjusted earnings for the rubber segment returned to black, increasing by $40.8 million to $39.5 million for the quarter.

Orion linked the increase primarily to “favourable operating leverage associated with substantially higher sales volume and favorable product mix.”

Consolidated volumes increased by 93.4 kilotonnes, or 59.5% year-over-year, with higher demand in both segments, across all applications and geographies, said Orion.

The demand, it said, was primarily driven by a sharp global recovery from the Covid-19 induced economic downturn.

Net sales increased nearly 100% to $198.4 million, driven primarily by higher sales volume, favourable product mix and the impact of passing through higher feedstock costs.

Overall adjusted earnings rose four-fold to $79 million, while income from operations increased to $132.5 million, compared to a $12.9 million loss reported last year. 

The adjusted earnings, said CEO Corning Painter, represent "the second highest level since our IPO in 2014, [and are] four times higher than year ago levels and 10% higher than the second quarter of 2019.”