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Sep 30, 2020
Orion Q3 2020 Earnings Report
Financial results announced for the third quarter ended September 30, 2020.
Key Takeaways
Orion Engineered Carbons S.A. reported a decrease in net sales to $282.0 million compared to $370.2 million in Q3 2019. Net income also decreased to $9.0 million, with basic EPS at $0.15. Adjusted EBITDA was $55.0 million, reflecting the impact of lower feedstock costs and the COVID-19 induced global economic downturn.
Continued focus on protecting employees, maintaining agile production and managing costs.
Benefited from a pronounced sequential demand surge.
Rubber business recovered to 91 percent of prior year levels, with improved pricing.
Specialty business achieved a remarkable rebound in the quarter with volume level tracking at 97 percent of prior year levels, with positive pricing being offset by mix
Revenue by Segment
Forward Guidance
Orion projects fourth quarter Adjusted EBITDA in the range of $44 million to $54 million, reflecting a continuation of recent trends, despite typical end of year seasonality dynamics.
Positive Outlook
- Third quarter demand surge and current fourth quarter order book patterns are encouraging.
- If the global economy recovers, our businesses should participate and reflect substantial operating leverage.
- Focus will remain on safety.
- Focus will remain on protecting our employees.
- Focus will remain on staying agile to serve our customers.
Challenges Ahead
- We can't predict the course or duration of the global pandemic.
- A meaningful decline in economic activity would curtail our guidance.
- Typical end of year seasonality dynamics.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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