Orion Engineered Carbons S.A. Updates Fourth Quarter Modified EBITDA Assistance

HOUSTON–(Organization WIRE)–Jan 7, 2021–

Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of specialty and superior-general performance carbon black, these days current its previously announced Modified EBITDA steerage for the fourth quarter of $44 million to $55 million that was bundled within its 3rd quarter earnings presentation on November 5, 2020. Current Adjusted EBITDA steering for the fourth quarter is now in the variety of $64 million to $67 million.

“Our adjusted steering is predominantly attributable to our specialty carbon black business enterprise device, driven by noticeably larger volumes, which rose very low-double digits sequentially. We also knowledgeable a little less seasonality than predicted in our rubber carbon black business in which volumes declined mid-single digits sequentially. We believe both of these tendencies are an indication that our prospects restocked their inventories, to some diploma for the duration of the quarter, to improved control their source chains. The momentary nature of restocking blended with broader uncertainties in the financial system make it tricky to forecast how demand will produce from listed here. Nonetheless, our present-day get e-book indicates a strong January and we count on sturdy demand as the international financial system recovers. I want to thank our clients for their partnership and the Orion team for having quick motion in the face of a dynamic market,” mentioned Corning Painter, Orion’s main government officer.

The organization expects to deliver even further information regarding its fourth quarter and whole year 2020 outcomes just after the current market closes on February 18, 2021. A push launch announcing convention get in touch with particulars will be distributed on January 11, 2021.

About Orion Engineered Carbons

Orion is a throughout the world provider of carbon black. We deliver a broad array of carbon blacks that incorporate higher-general performance specialty gas blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks and other carbon blacks that tint, colorize and enhance the efficiency of polymers, plastics, paints and coatings, inks and toners, textile fibers, adhesives and sealants, tires, and mechanical rubber goods such as automotive belts and hoses. Orion operates 14 international creation sites and has roughly 1,425 staff members worldwide. For a lot more info, please visit our internet site www.orioncarbons.com.

Ahead Searching Statements

This document includes and refers to sure ahead-on the lookout statements with respect to our monetary problem, final results of operations and company. These statements represent ahead-wanting statements in just the which means of Segment 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-searching statements are statements of long run expectations that are based mostly on management’s current anticipations and assumptions and require recognized and mysterious risks and uncertainties that could cause precise benefits, performance or activities to differ materially from those expressed or implied in these statements. Forward-seeking statements are typically discovered by terms these types 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 indicating. Forward-seeking statements consist of, among others, statements concerning the prospective exposure to current market challenges, statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not minimal to statements of historic or existing information or situations, which includes statements about the next matters: our tactics for (i) mitigating the impacts of the international outbreak of the coronavirus, (ii) strengthening our placement in specialty carbon blacks and rubber carbon blacks, (iii) increasing our rubber carbon black margins and (iv) strengthening the competitiveness of our operations the skill to pay out dividends at historical dividend ranges or at all funds circulation projections the installation of pollution management technological innovation in our U.S. manufacturing services pursuant to the EPA consent decree the result of any in-development, pending or doable litigation or regulatory proceedings and our expectation that the markets we provide will keep on to expand. The COVID-19 pandemic has experienced and could keep on to have an adverse effect on our enterprise and benefits of operations, including as a outcome of disruptions to our supply chain, disruptions and limitations on the skill of several of our staff members to perform successfully for the reason that of health issues, quarantines, government steps, facility closures and other limitations, as well as short term closures of selected of our facilities and those of certain of our buyers and suppliers. If we experience operational or provide chain disruptions, or these types of disruptions are exacerbated or extended in the long run, our enterprise, results of operations and liquidity could be adversely impacted. In addition, we have professional important and unpredictable reductions in the demand from customers for our goods as a result of the COVID-19 pandemic. You need to not place undue reliance on ahead seeking statements.

All these forward-hunting statements are based mostly on estimates and assumptions that, though thought to be fair, are inherently uncertain. For that reason, undue reliance really should not be positioned upon any forward-wanting statements. There are important things that could induce true effects to vary materially from people contemplated by such ahead-on the lookout statements. These elements consist of, amid many others: the outcomes of the COVID-19 pandemic on our business and success of operations adverse or uncertain globally economic problems volatility and cyclicality in the industries in which we operate operational dangers inherent in chemical substances production, which include disruptions as a outcome of intense temperature circumstances and purely natural disasters and as a consequence of the COVID-19 pandemic our dependence on major clients and suppliers our skill to contend in the industries and markets in which we operate our ability to tackle improvements in the character of upcoming transportation and mobility concepts which may possibly impact our shoppers and our enterprise our capability to build new items and systems properly and the availability of substitutes for our items our capability to carry out our business procedures volatility in the costs and availability of raw products (which includes but not minimal to any and all effects from limitations imposed by the MARPOL conference and respective Intercontinental Maritime Organization (IMO) laws in certain to reduce sulfur oxides (SOx) emissions from ships) and electricity our capacity to answer to modifications in feedstock costs and high quality our capacity to notice gains from investments, joint ventures, acquisitions or alliances our potential to notice gains from planned plant capability expansions and site growth tasks and the probable delays to this kind of expansions and projects information and facts know-how techniques failures, community disruptions and breaches of info protection our interactions with our workforce, such as negotiations with labor unions, strikes and perform stoppages our capacity to recruit or retain crucial management and staff our publicity to political or nation pitfalls inherent in undertaking small business in some nations geopolitical activities in the European Union, and in unique the ultimate foreseeable future relations in between the European Union and the United Kingdom resulting from the “Brexit” which may possibly effects the Euro environmental, wellness and basic safety rules, including nanomaterial and greenhouse fuel emissions laws, and the relevant fees of preserving compliance and addressing liabilities doable long run investigations and enforcement steps by governmental or supranational agencies our functions as a enterprise in the chemical sector, which includes the linked dangers of leaks, fires and poisonous releases market and regulatory modifications that could influence our ability to provide or if not profit from co-created electrical power litigation or authorized proceedings, like solution liability and environmental promises our capability to shield our mental residence rights and know-how our ability to create the funds demanded to services our personal debt and finance our operations fluctuations in international currency exchange and fascination charges the availability and efficiency of hedging changes in international and local financial disorders, which include with regard to the Euro, dislocations in credit and funds markets and inflation or deflation potential impairments or produce-offs of certain property necessary increases in our pension fund contributions the adequacy of our insurance coverage changes in our jurisdictional earnings mix or in the tax rules or recognized interpretations of tax laws in those jurisdictions our indemnities to and from Evonik problems to our decisions and assumptions in examining and complying with our tax obligations and possible issue in obtaining or imposing judgments or bringing steps against us in the United States.

You ought to not put undue reliance on ahead-seeking statements. We existing specific fiscal steps that are not geared up in accordance with U.S. GAAP or the accounting criteria of any other jurisdiction and might not be comparable to other in the same way titled actions of other corporations. These non-U.S. GAAP actions are Contribution Margin, Contribution Margin for every Metric Ton, Modified EBITDA, Adjusted EPS, Net Operating Money and Funds Expenditures. Modified EBITDA, Adjusted EPS, Contribution Margins and Internet Functioning Cash are not actions of overall performance underneath U.S. GAAP and should really not be regarded as in isolation or construed as substitutes for web product sales, consolidated revenue (decline) for the interval, running consequence (EBIT), gross financial gain or other U.S. GAAP measures as an indicator of our operations in accordance with U.S. GAAP. For a reconciliation of these non-U.S. GAAP financial actions to the most right similar U.S. GAAP measures, see Appendix.

Things that could bring about our actual results to differ materially from those expressed or implied in these forward-on the lookout statements involve all those things in-depth below the captions “Note Relating to Forward-Wanting Statements” and “Risk Factors” in our Annual Report on Variety 10-K for the calendar year finished December 31, 2019, our Quarterly Stories on Type 10-Q and in Notice R. to our audited consolidated fiscal statements with regards to contingent liabilities, including litigation. You really should not place undue reliance on forward-wanting statements. Every single ahead-wanting statement speaks only as of the date of the particular assertion. New danger things and uncertainties arise from time to time and it is not attainable for our management to forecast all hazard aspects and uncertainties, nor can we evaluate the impression of all components on our company or the extent to which any variable, or blend of things, may possibly result in real outcomes to vary materially from those contained in any forward-searching statements. We undertake no obligation to publicly update or revise any forward-wanting statement – including people in the “2020 Outlook” and “Quarterly Business enterprise Section Results” sections above – as a consequence of new information and facts, long run gatherings or other facts, other than as necessary by relevant law.