Orion Engineered Carbons S.A. Updates Fourth Quarter Adjusted EBITDA Direction

Orion Engineered Carbons S.A. (NYSE: OEC), a global provider of specialty and higher-overall performance carbon black, nowadays up to date its earlier announced Modified EBITDA assistance for the fourth quarter of $44 million to $55 million that was included within its 3rd quarter earnings presentation on November 5, 2020. Up-to-date Modified EBITDA steerage for the fourth quarter is now in the variety of $64 million to $67 million.

“Our modified assistance is predominantly attributable to our specialty carbon black company unit, driven by noticeably better volumes, which rose lower-double digits sequentially. We also knowledgeable a little fewer seasonality than predicted in our rubber carbon black company where by volumes declined mid-single digits sequentially. We think each of these traits are an sign that our consumers restocked their inventories, to some degree through the quarter, to greater regulate their supply chains. The non permanent character of restocking merged with broader uncertainties in the overall economy make it difficult to forecast how demand from customers will produce from here. Nevertheless, our present buy e book suggests a solid January and we be expecting sturdy desire as the international economic climate recovers. I want to thank our customers for their partnership and the Orion group for taking swift motion in the face of a dynamic marketplace,” explained Corning Painter, Orion’s chief govt officer.

The enterprise expects to deliver even more information regarding its fourth quarter and entire yr 2020 final results following the market place closes on February 18, 2021. A push release announcing convention contact information will be distributed on January 11, 2021.

About Orion Engineered Carbons

Orion is a around the globe supplier of carbon black. We make a wide vary of carbon blacks that incorporate significant-effectiveness specialty fuel blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks and other carbon blacks that tint, colorize and boost the effectiveness of polymers, plastics, paints and coatings, inks and toners, textile fibers, adhesives and sealants, tires, and mechanical rubber merchandise these types of as automotive belts and hoses. Orion operates 14 international creation internet sites and has roughly 1,425 staff members around the world. For additional information, make sure you check out our website www.orioncarbons.com.

Ahead Seeking Statements

This document contains and refers to particular ahead-seeking statements with regard to our money condition, final results of operations and enterprise. These statements represent ahead-looking statements within just the meaning of Area 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-searching statements are statements of long term expectations that are based mostly on management’s latest anticipations and assumptions and contain identified and unidentified threats and uncertainties that could result in precise effects, functionality or situations to vary materially from people expressed or implied in these statements. Ahead-looking statements are usually recognized by text this sort of as “anticipate,” “assume,” “assure,” “believe,” “confident,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “objectives,” “outlook,” “probably,” “project,” “will,” “seek,” “target” “to be,” and other words of very similar that means. Forward-searching statements contain, among the other folks, statements relating to the opportunity exposure to market place pitfalls, statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not restricted to statements of historic or existing details or ailments, like statements about the pursuing issues: our approaches for (i) mitigating the impacts of the world wide outbreak of the coronavirus, (ii) strengthening our posture in specialty carbon blacks and rubber carbon blacks, (iii) rising our rubber carbon black margins and (iv) strengthening the competitiveness of our operations the means to pay out dividends at historical dividend degrees or at all cash stream projections the set up of pollution manage know-how in our U.S. production services pursuant to the EPA consent decree the final result of any in-progress, pending or probable litigation or regulatory proceedings and our expectation that the markets we serve will keep on to develop. The COVID-19 pandemic has experienced and could continue to have an adverse effect on our enterprise and final results of functions, like as a end result of disruptions to our source chain, disruptions and limits on the skill of many of our personnel to function successfully simply because of health issues, quarantines, govt steps, facility closures and other constraints, as effectively as non permanent closures of selected of our facilities and these of specified of our prospects and suppliers. If we knowledge operational or supply chain disruptions, or such disruptions are exacerbated or extended in the long term, our organization, final results of functions and liquidity may possibly be adversely impacted. In addition, we have skilled significant and unpredictable reductions in the need for our products as a result of the COVID-19 pandemic. You should not position undue reliance on ahead searching statements.

All these ahead-searching statements are dependent on estimates and assumptions that, whilst thought to be reasonable, are inherently unsure. Therefore, undue reliance ought to not be placed upon any forward-hunting statements. There are crucial factors that could induce real outcomes to vary materially from these contemplated by these types of forward-seeking statements. These components consist of, among many others: the outcomes of the COVID-19 pandemic on our company and final results of operations detrimental or uncertain around the globe economic circumstances volatility and cyclicality in the industries in which we operate operational pitfalls inherent in chemicals production, like disruptions as a result of critical weather circumstances and natural disasters and as a end result of the COVID-19 pandemic our dependence on big customers and suppliers our capacity to compete in the industries and markets in which we run our skill to deal with variations in the character of upcoming transportation and mobility ideas which might impact our clients and our small business our capability to build new solutions and technologies successfully and the availability of substitutes for our products our potential to put into practice our small business methods volatility in the costs and availability of uncooked materials (together with but not constrained to any and all outcomes from constraints imposed by the MARPOL conference and respective Worldwide Maritime Firm (IMO) rules in distinct to lower sulfur oxides (SOx) emissions from ships) and energy our ability to answer to alterations in feedstock rates and good quality our capacity to understand rewards from investments, joint ventures, acquisitions or alliances our capability to comprehend gains from prepared plant potential expansions and internet site growth tasks and the probable delays to these types of expansions and initiatives facts engineering devices failures, network disruptions and breaches of information security our associations with our workforce, such as negotiations with labor unions, strikes and do the job stoppages our ability to recruit or retain essential administration and personnel our publicity to political or place threats inherent in executing company in some countries geopolitical events in the European Union, and in certain the best future relations involving the European Union and the United Kingdom resulting from the “Brexit” which may well influence the Euro environmental, well being and protection polices, like nanomaterial and greenhouse gasoline emissions laws, and the related expenditures of maintaining compliance and addressing liabilities feasible upcoming investigations and enforcement actions by governmental or supranational businesses our functions as a company in the chemical sector, including the related threats of leaks, fires and harmful releases industry and regulatory variations that could influence our skill to promote or or else gain from co-generated electrical power litigation or authorized proceedings, such as product liability and environmental promises our skill to secure our intellectual residence rights and know-how our potential to produce the cash demanded to support our personal debt and finance our functions fluctuations in foreign currency exchange and curiosity premiums the availability and performance of hedging alterations in international and regional economic disorders, like with regard to the Euro, dislocations in credit and money marketplaces and inflation or deflation probable impairments or compose-offs of sure assets expected boosts in our pension fund contributions the adequacy of our insurance coverage adjustments in our jurisdictional earnings combine or in the tax regulations or accepted interpretations of tax guidelines in people jurisdictions our indemnities to and from Evonik problems to our choices and assumptions in assessing and complying with our tax obligations and possible problem in getting or imposing judgments or bringing actions in opposition to us in the United States.

You need to not put undue reliance on ahead-seeking statements. We current specific financial actions that are not prepared in accordance with U.S. GAAP or the accounting benchmarks of any other jurisdiction and may perhaps not be similar to other similarly titled measures of other companies. These non-U.S. GAAP steps are Contribution Margin, Contribution Margin for every Metric Ton, Adjusted EBITDA, Altered EPS, Net Operating Money and Money Expenses. Adjusted EBITDA, Adjusted EPS, Contribution Margins and Internet Functioning Capital are not actions of overall performance beneath U.S. GAAP and really should not be considered in isolation or construed as substitutes for internet gross sales, consolidated income (loss) for the period, running end result (EBIT), gross income or other U.S. GAAP actions as an indicator of our functions in accordance with U.S. GAAP. For a reconciliation of these non-U.S. GAAP financial actions to the most specifically comparable U.S. GAAP steps, see Appendix.

Variables that could result in our actual success to differ materially from all those expressed or implied in this sort of ahead-hunting statements involve those things thorough under the captions “Note Relating to Forward-On the lookout Statements” and “Risk Factors” in our Annual Report on Variety 10-K for the yr finished December 31, 2019, our Quarterly Reports on Form 10-Q and in Note R. to our audited consolidated fiscal statements pertaining to contingent liabilities, such as litigation. You must not location undue reliance on ahead-wanting statements. Each forward-wanting statement speaks only as of the date of the certain assertion. New threat components and uncertainties arise from time to time and it is not probable for our management to forecast all chance elements and uncertainties, nor can we assess the affect of all factors on our organization or the extent to which any component, or mixture of elements, might result in actual success to differ materially from people contained in any forward-searching statements. We undertake no obligation to publicly update or revise any ahead-looking assertion – like all those in the “2020 Outlook” and “Quarterly Small business Phase Results” sections over – as a result of new details, potential activities or other information, other than as expected by applicable legislation.

Reconciliation of Non-GAAP Fiscal Measures

In this release we refer to Adjusted EBITDA which is a economic measure that has not been organized in accordance with U.S. GAAP or the accounting criteria of any other jurisdiction and might not be comparable to other similarly titled actions of other organizations. We refer to this measure as a “non-GAAP” money measure. Modified EBITDA is described as working outcome (EBIT) ahead of depreciation and amortization, altered for acquisition related bills, restructuring expenses, consulting charges similar to group strategy, share of income or loss of joint enterprise and particular other things. Adjusted EBITDA is used by our management to consider our running efficiency and make selections with regards to allocation of cash since it excludes the consequences of sure merchandise that have less bearing on the efficiency of our fundamental main organization. Our use of Adjusted EBITDA has limitations as an analytical instrument, and you really should not consider it in isolation or as a substitute for examination of our money effects as reported below U.S. GAAP. Some of these constraints are: (a) whilst Adjusted EBITDA excludes the effects of depreciation and amortization, the belongings staying depreciated and amortized may possibly have to be replaced in the foreseeable future and so the charge of replacing property or acquiring new property, which will have an affect on our running success about time, is not reflected (b) Adjusted EBITDA does not reflect desire or certain other costs that we will continue to incur above time and will adversely have an affect on our gain or loss, which is the top evaluate of our money effectiveness and (c) other firms, like corporations in our market, could calculate Adjusted EBITDA or equally titled actions in another way. Since of these and other limits, you really should contemplate Adjusted EBITDA together with our other U.S. GAAP-based mostly monetary performance actions, this kind of as internet cash flow or loss for the period of time.

We have not delivered a reconciliation of ahead-searching Adjusted EBITDA to the most comparable GAAP evaluate of web income. Delivering net revenue assistance is most likely misleading and not realistic given the problem of projecting party-pushed transactions and other non-main working products that are involved in internet revenue.