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Jun 30, 2020
Orion Q2 2020 Earnings Report
Announced second quarter financial results impacted by COVID-19 induced global economic downturn.
Key Takeaways
Orion Engineered Carbons S.A. reported a decrease in net sales to $202.6 million compared to $399.0 million in the second quarter of 2019. The company experienced a net loss of $17.8 million, with basic EPS of $(0.30), compared to a net income of $24.7 million and $0.41 in the second quarter of 2019. Adjusted EBITDA was $15.2 million compared to $71.5 million in the second quarter of 2019.
Continued focus on protecting employees, maintaining agile production and managing costs
Generated $85.7 million of operating cash flow despite sharply lower volumes and profitability, reflecting a $77.3 million working capital reduction, providing a countercyclical, stabilizing impact on results
Established $45 million in additional ancillary credit lines under revolving credit facility, contributing to a $86 million sequential increase in liquidity accessible at any net leverage level to $333 million
Net sales of $202.6 million compared to $399.0 million in the second quarter of 2019 reflecting the COVID-19 induced global economic downturn
Revenue by Segment
Forward Guidance
Company expects demand to continue to recover across specialty and rubber carbon black end markets as economies gradually reopen.
Positive Outlook
- Recovery in driving rates and auto sales from historic lows early in the second quarter, are very positive
- Economies gradually reopen
- Expect demand to continue to recover across our specialty and rubber carbon black end markets
Challenges Ahead
- Cannot predict the ultimate course of COVID-19
- Cannot predict the ensuing pace and shape of the recovery in our end markets.
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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