Orion SA announces preliminary update for full 2024 via Investing.com

HOUSTON–( BUSINESS WIRE )–Orion SA (NYSE: OEC ), a global specialty chemicals company, today announced preliminary unaudited financial data for its fiscal year ending December 31, 2024.

Orion now expects 2024 adjusted EBITDA to be nominally below our guidance range of $305 million to $315 million, primarily due to the impact of foreign currency translation related to the strengthening dollar and one-time costs related to the cost reduction plan. Weaker-than-expected volume in the rubber segment at the end of the fourth quarter and a somewhat unfavorable mix of specialty segments were also factors that would have positioned the company at the lower end of guidance, excluding the above items. In the fourth quarter, Orion launched an initiative to reduce its offsite workforce by ~6% and expects to realize approximately $6 million in annualized cost savings in 2025.

We believe that the reduced tire demand we experienced at the end of the year reflects continued pressure on Western tire production resulting from increased levels of tire imports into North America and Europe, respectively from Southeast Asia and China, as well as some year-end inventory adjustments by certain key customers, said Corning (NYSE: ) Painter, chief executive officer of Orion.

Despite increased tire imports into our key geographic markets, we believe the outcome of our tire segment’s commercial strategy positions us well for 2025, when trade flows will rebalance within the global tire market.

Painter added, Nonetheless, we initiated discrete cost reduction actions in the fourth quarter of 2024, which we expect to substantially complete in the first quarter of 2025. Overall, based on factors within Orion’s control and despite strengthening FX headwinds, we continue to expect modest growth in 2025, building on the structurally improved returns our company has achieved over the past few years.

These expected financial results are preliminary and unaudited, have not been reviewed by the Company’s independent certified public accountants and are subject to the completion of normal accounting procedures and year-end adjustments, and are therefore subject to change.

Publication date and conference call

Orion intends to report fourth quarter and full year 2024 results after the market closes on Wednesday, February 19, 2025, followed by a conference call on Thursday, February 20, 2025 at 8:30 a.m. (ET).

Opt-in details for the live conference call are as follows:

A replay of the conference call can be accessed at the following numbers until Thursday, March 6, 2025:

In addition, an archived webcast of the conference call will be available on the investor section of the company’s website at orioncarbons.com.

About Orion SA

Orion SA (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced in powder or pellet form. The material is manufactured to exact customer specifications for tires, coatings, ink, batteries, plastics and numerous other high performance specialty applications. Carbon black is used for tinting, coloring, strengthening, conducting electricity, increasing durability and additional UV protection. Orion has innovation centers on three continents and produces carbon black in 15 factories worldwide, offering the most diverse production processes in the industry. The company’s corporate origins go back more than 160 years to Germany, where it operates the longest-running carbon black factory in the world. Orion is a leading innovator that applies a deep understanding of customer needs to deliver sustainable solutions. For more information, visit www.orioncarbons.com.

Forward-looking statements

This document contains certain forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are forward-looking statements based on current expectations and assumptions, including statements in regarding our expected financial results for the year ended December 31, 2024 and involves known and unknown risks and uncertainties, including but not limited to the completion of normal year-end accounting procedures and adjustments with respect to our preliminary results for the quarter and fiscal year ended December 31, 2024 and other risk factors described from time to time in the Company’s reports on Form 10-K, Form 10-Q and Form 8-K (including any amendments to those reports) filed with the US Securities and Exchange Commission, any of which could cause actual results, performance or events to differ materially from those expressed or implied in these statements. You should not place undue reliance on forward-looking statements. Any forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties arise from time to time and it is not possible to predict all risk factors and uncertainties, nor can we estimate the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any related statements to the future. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information, except as required by applicable law.

See the original version on businesswire.com: https://www.businesswire.com/news/home/20250115324928/en/

Christopher Kapsch
Vice President of Investor Relations
+1 281-318-4413
christopher.kapsch@orioncarbons.com

Source: Orion Engineered (NYSE:) Carbons SA