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Orion S.A. (NYSE: OEC) announced preliminary unaudited financial results for FY2024, expecting adjusted EBITDA to fall slightly below the guided range of $305-$315 million. The shortfall is attributed to multiple factors: foreign exchange impacts from a strengthening dollar, one-time costs from a workforce reduction plan, weaker Rubber segment volumes in Q4, and less favorable Specialty segment mix.
The company has initiated a cost reduction plan, reducing non-plant workforce by ~6%, which is expected to yield approximately $6 million in annualized cost savings in 2025. Management attributes the Rubber segment weakness to pressure on Western tire production due to elevated imports from Southeast Asia and China, along with year-end inventory adjustments from key customers.
Despite these challenges, Orion expects modest growth in 2025, building on structurally improved returns. The company will report Q4 and full-year 2024 results after market close on February 19, 2025.
Orion S.A. (NYSE: OEC) ha annunciato i risultati finanziari preliminari non verificati per l’anno fiscale 2024, prevedendo che l’EBITDA rettificato scenderà leggermente al di sotto dell’intervallo previsto di 305-315 milioni di dollari. La carenza è attribuita a molteplici fattori: impatti del cambio valuta dovuti a un dollaro in rafforzamento, costi una tantum derivanti da un piano di riduzione della forza lavoro, volumi più deboli nel segmento Gomma nel quarto trimestre e una combinazione meno favorevole nel segmento Specialità.
La società ha avviato un piano di riduzione dei costi, riducendo la forza lavoro non impiantistica di circa il 6%, il che dovrebbe comportare risparmi annualizzati di circa 6 milioni di dollari nel 2025. La direzione attribuisce la debolezza del segmento Gomma alla pressione sulla produzione di pneumatici occidentali a causa di elevate importazioni dal Sud-est asiatico e dalla Cina, insieme ad aggiustamenti delle scorte di fine anno da parte dei clienti chiave.
Nonostante queste sfide, Orion prevede una modesta crescita nel 2025, basata su ritorni strutturalmente migliorati. La società comunicherà i risultati del quarto trimestre e dell’intero anno 2024 dopo la chiusura del mercato il 19 febbraio 2025.
Orion S.A. (NYSE: OEC) anunció resultados financieros preliminares no auditados para el año fiscal 2024, esperando que el EBITDA ajustado caiga ligeramente por debajo del rango guiado de 305-315 millones de dólares. La caída se atribuye a múltiples factores: impactos de tipo de cambio debido a un dólar fortalecido, costos únicos por un plan de reducción de personal, volúmenes más débiles en el segmento de Caucho en el cuarto trimestre y una mezcla menos favorable en el segmento Especialidad.
La compañía ha iniciado un plan de reducción de costos, reduciendo la fuerza laboral no industrial en aproximadamente un 6%, lo que se espera que genere aproximadamente 6 millones de dólares en ahorros anuales en 2025. La dirección atribuye la debilidad del segmento de Caucho a la presión sobre la producción de neumáticos en Occidente debido a importaciones elevadas del Sudeste Asiático y China, junto con ajustes de inventario de fin de año de los principales clientes.
A pesar de estos desafíos, Orion espera un crecimiento modesto en 2025, basándose en retornos estructuralmente mejorados. La compañía reportará los resultados del cuarto trimestre y del año completo 2024 después del cierre del mercado el 19 de febrero de 2025.
오리온 S.A. (NYSE: OEC)는 2024 회계연도에 대한 예비 미감사 재무 결과를 발표했으며, 조정 후 EBITDA가 3억 5천만 달러에서 3억 1천5백만 달러의 가이드 범위보다 약간 낮아질 것으로 예상하고 있습니다. 이러한 부족은 여러 요인에 기인하며, 강세 달러에 따른 외환 영향, 인력 감축 계획에 따른 일회성 비용, 4분기 고무 부문의 약한 물량, 그리고 전문 부문의 덜 유리한 혼합 상태 등이 있습니다.
회사는 비공장 인력을 약 6% 줄이는 비용 절감 계획을 시작했으며, 이는 2025년에 연간 약 600만 달러의 비용 절감을 가져올 것으로 예상합니다. 경영진은 고무 부문의 약세를 동남아시아와 중국에서의 높은 수입으로 인한 서구 타이어 생산 압박과 주요 고객의 연말 재고 조정으로 보고합니다.
이러한 도전 과제에도 불구하고 오리온은 2025년에 구조적으로 개선된 수익을 바탕으로 modest한 성장을 기대하고 있습니다. 회사는 2025년 2월 19일 시장 마감 후 2024년 4분기 및 연간 결과를 보고할 예정입니다.
Orion S.A. (NYSE: OEC) a annoncé des résultats financiers préliminaires non vérifiés pour l’exercice 2024, s’attendant à ce que l’EBITDA ajusté tombe légèrement en dessous de la fourchette guidée de 305 à 315 millions de dollars. Ce manque à gagner est attribué à plusieurs facteurs : impacts des devises en raison d’un dollar en renforcement, coûts exceptionnels liés à un plan de réduction d’effectifs, volumes plus faibles dans le segment Caoutchouc au quatrième trimestre et une combinaison moins favorable dans le segment Spécialité.
L’entreprise a lancé un plan de réduction des coûts, réduisant sa main-d’œuvre non industrielle d’environ 6 %, ce qui devrait générer environ 6 millions de dollars d’économies annuelles en 2025. La direction attribue la faiblesse du segment Caoutchouc à la pression sur la production de pneus occidentaux en raison des importations élevées en provenance d’Asie du Sud-Est et de Chine, ainsi qu’à des ajustements de stocks en fin d’année de clients clés.
Malgré ces défis, Orion s’attend à une croissance modeste en 2025, reposant sur des rendements structurellement améliorés. La société publiera les résultats du quatrième trimestre et de l’année complète 2024 après la clôture du marché le 19 février 2025.
Orion S.A. (NYSE: OEC) gab vorläufige ungeprüfte Finanzzahlen für das Geschäftsjahr 2024 bekannt und erwartet, dass das bereinigte EBITDA leicht unter dem vorgegebenen Bereich von 305-315 Millionen Dollar liegen wird. Der Rückgang ist auf mehrere Faktoren zurückzuführen: Wechselkursauswirkungen aufgrund eines stärkeren Dollars, einmalige Kosten aus einem Personalabbauplan, schwächere Volumina im Gummisegment im vierten Quartal und eine weniger günstige Mischung im Spezialsegment.
Das Unternehmen hat einen Kostenreduzierungsplan initiiert, der die nicht betrieblichen Arbeitskräfte um etwa 6% reduziert und voraussichtlich Einsparungen von etwa 6 Millionen Dollar jährlich im Jahr 2025 erzielen wird. Das Management führt die Schwäche des Gummisektors auf den Druck auf die westliche Reifenproduktion aufgrund erhöhter Importe aus Südostasien und China sowie auf Lageranpassungen zum Jahresende von wichtigen Kunden zurück.
Trotz dieser Herausforderungen erwartet Orion im Jahr 2025 ein moderates Wachstum, das auf strukturell verbesserten Erträgen basiert. Das Unternehmen wird die Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 nach Marktschluss am 19. Februar 2025 bekanntgeben.
Positive
- Cost reduction initiative expected to generate $6M annual savings in 2025
- Management projects modest growth for 2025
Negative
- 2024 adjusted EBITDA to fall below guidance range of $305-$315M
- Weaker than expected Rubber segment volumes in Q4
- Less favorable Specialty segment mix
- Negative foreign exchange impact from strengthening dollar
- 6% reduction in non-plant workforce
Insights
The preliminary results reveal concerning operational challenges. Adjusted EBITDA falling below the $305-315 million guidance range signals execution difficulties, with multiple headwinds converging. The foreign exchange impact from dollar strength particularly affects international operations, while the ~6% workforce reduction targeting $6 million in annual savings indicates mounting cost pressures.
The Rubber segment’s volume decline is particularly worrisome as it reflects structural market challenges from Asian imports rather than cyclical factors. This suggests potential longer-term margin pressure unless trade dynamics shift. The Specialty segment’s unfavorable mix points to possible pricing or product portfolio challenges that could persist into 2025.
While management’s cost-cutting initiatives demonstrate proactiveness, the projected “modest growth” for 2025 appears cautious given the continuing FX headwinds and competitive pressures. The timing of the workforce reduction, impacting non-plant employees, suggests a strategic shift toward operational efficiency but may limit growth capacity.
The global tire market dynamics present significant structural challenges. The surge in tire imports from Southeast Asia and China into North American and European markets indicates a fundamental shift in trade patterns that’s pressuring Western tire manufacturers – Orion’s key customers. This market disruption extends beyond cyclical fluctuations, suggesting a potential long-term realignment of the supply chain.
Key metrics warrant attention:
- The timing of volume weakness (late Q4) suggests potential inventory destocking beyond normal seasonality
- Customer inventory adjustments point to broader demand uncertainty
- Geographic market pressures in core regions (North America/Europe) indicate systemic challenges
The company’s reference to “trade flows rebalancing” implies an expectation of potential trade policy interventions or market self-correction, though the timeline remains uncertain.
HOUSTON–(BUSINESS WIRE)– Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced a preliminary unaudited financial update for its fiscal year ending December 31, 2024.
Orion now expects 2024 adjusted EBITDA to be nominally below our guidance range of $305-$315 million, due primarily to foreign exchange translation impacts related to the strengthening dollar and one-time costs associated with a cost reduction plan. Weaker than anticipated Rubber segment volumes late in the fourth quarter and slightly less favorable Specialty segment mix were also factors and would have positioned the company at the lower end of guidance, excluding the items noted above. In the fourth quarter, Orion commenced an initiative to reduce its non-plant workforce by ~6% and expects to realize approximately $6 million in annualized cost savings in 2025.
“We believe the Rubber demand softness we experienced late in the year reflects continued pressure on Western tire production resulting from elevated levels of tire imports into North America and Europe, respectively, from Southeast Asia and China, as well as some year-end inventory adjustments at certain key customers,” said Corning Painter, Orion’s Chief Executive Officer.
“Despite stepped-up tire imports into our key geographic markets, we believe the outcome of our Rubber segment’s commercial strategy positions us well for 2025, and for when trade flows rebalance within the global tire market.”
Painter added, “Regardless, 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 the strengthening FX headwind, we continue to expect modest growth in 2025, building upon the structurally improved returns our company has generated over the past several years.”
These expected financial results are preliminary and unaudited, have not been reviewed by the Company’s independent registered public accountants, and remain subject to the completion of normal year-end accounting procedures and adjustments, and are therefore subject to change.
Release Date and Conference Call
Orion intends to report fourth quarter and full year 2024 results after the market’s close on Wednesday, February 19, 2025, to be followed by a conference call on Thursday, February 20, 2025, at 8:30 a.m. (ET).
The dial-in details for the live conference call follow:
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U.S. Toll Free: |
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1-877-407-4018 |
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International: |
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1-201-689-8471 |
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A conference call replay may be accessed at the following numbers through Thursday, March 6, 2025:
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U.S. Toll Free: |
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1-844-512-2921 |
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International: |
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1-412-317-6671 |
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Conference ID: |
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13751212 |
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Additionally, an archived webcast of the conference call will be available in the investor section of the company’s website at orioncarbons.com.
About Orion S.A.
Orion S.A. (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection. Orion has innovation centers on three continents and produces carbon black at 15 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. For more information, please visit www.orioncarbons.com.
Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements of future expectations that are based on current expectations and assumptions, including statements regarding our expected financial results for the year ended December 31, 2024, and involve 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 Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission, each 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. Each forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties emerge from time to time and it is not possible to predict all risk factors and uncertainties, nor can we assess the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information, other than as required by applicable law.
View source 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 Carbons S.A.
FAQ
What is Orion’s (OEC) expected adjusted EBITDA for 2024?
Orion expects 2024 adjusted EBITDA to be nominally below their guidance range of $305-$315 million.
How much cost savings will OEC’s workforce reduction generate in 2025?
Orion’s workforce reduction initiative is expected to generate approximately $6 million in annualized cost savings in 2025.
What percentage of workforce is Orion (OEC) reducing in their cost-cutting initiative?
Orion is reducing its non-plant workforce by approximately 6%.
What factors affected Orion’s (OEC) Rubber segment performance in Q4 2024?
The Rubber segment was affected by pressure on Western tire production due to elevated imports from Southeast Asia and China, along with year-end inventory adjustments from key customers.
When will Orion (OEC) release their full Q4 and 2024 annual results?
Orion will release Q4 and full year 2024 results after market close on February 19, 2025.
