Orion Engineered Carbons (NYSE: OEC) reported Q4 EPS of EUR0.38, versus EUR0.39 reported last year. Revenue for the quarter came in at EUR288.5 million, versus EUR276.3 million reported last year.

2018 Outlook

Mr. Clem concluded, “We are witnessing favorable industry dynamics brought about by strengthening demand and limited growth in supply. We have gained price in our major rubber contracts for 2018 and we are seeing substantial improvements in specialty black pricing as we work to catch up with the rise in the price of feedstocks. It appears that the global economy is moving in the right direction and we remain optimistic that the large investments made in the U.S. by our tire customers will result in a long awaited uptick in demand for U.S. rubber blacks.

Consistent with this outlook, we expect a full year Adjusted EBITDA for 2018 to be in the range of €230 million and €250 million. This outlook is based on the assumptions that volume growth will be in line with current GDP expectations and that oil prices, exchange rates and feedstock impacts will be at levels experienced late in the fourth quarter of 2017.

As previously announced, we will begin reporting our results in US dollars rather than euros effective with the first quarter of 2018. Accordingly, and based on the same set of assumptions previously outlined, we are guiding to full year Adjusted EBITDA between $270 million and $300 million.

Within this backdrop of a positive trading environment, it is the Company's intention that dividends start to grow as net income increases. Furthermore we confirm our intention to remain in a net debt to Adjusted EBITDA leverage ratio in the range of 2.0 times to 2.5 times based on the current pipeline of investment opportunities. Based on strong performance in 2017 and our positive expectations for the coming year we intend to implement a program to buy back up to $20 million of Orion shares over the coming year as opportunities arise.”

Other guidance metrics for 2018 include shares outstanding of 59.3 million before any buy back and vesting of awards under the Group’s Long Term Incentive program, an underlying tax rate of 32 -33% on pre-tax income, and capital expenditures reflecting an operating run rate consistent with the past of approximately €60 million but with the total rising to over €80 million due to the expenditures associated with the consolidation of our plants in Korea. This excludes EPA related capex spending. As mentioned earlier we reached an agreement to sell the land occupied by our smaller plant in Korea. We expect this transaction to more than offset the cash requirements associated with this major consolidation project.

Depreciation and Amortization for 2018 is estimated to be approximately €80 million. This outlook does not consider contingencies described in Note 9 to our consolidated financial statements as at December 31, 2017.

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