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Mar 31, 2020
Orion Q1 2020 Earnings Report
Orion Engineered Carbons S.A. announced first quarter 2020 financial results, demonstrating resilience amidst the pandemic.
Key Takeaways
Orion Engineered Carbons S.A. reported net sales of $336.0 million and a net income of $18.0 million for Q1 2020. The company swiftly implemented a business continuity plan in response to COVID-19, protecting employees and supporting customers. Adjusted EBITDA was $63.8 million, reflecting the impact of tire customer plant shutdowns in late March.
Implemented business continuity plan to protect employees and production capabilities.
Suspended dividend to enhance financial flexibility and bolster cash position.
Delivered Adjusted EBITDA of $63.8 million despite significant market disruptions.
Focused on maintaining reliable supply and supporting customers through the pandemic.
Revenue by Segment
Forward Guidance
While the ultimate economic impact of COVID-19 is uncertain, Orion believes its markets are strong and driving will be a popular mode of transportation. The company has a strong team, a technologically diverse Carbon Black franchise, a sound balance sheet, and substantial liquidity to weather the downturn.
Positive Outlook
- Markets are ultimately strong, possibly even stronger now.
- Driving will be a very popular mode of transportation.
- Replacement tires drive 60% of rubber carbon black demand.
- One of the strongest, most technologically diverse Carbon Black franchises in the world has been developed.
- Substantial liquidity to withstand this economic downturn.
Challenges Ahead
- Impossible to know the ultimate dimensions of the economic impact of COVID-19.
- New car sales may be slow at first.
- More than 75 percent of tire plants served by OEC were fully or partially idled in April.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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