Orion Engineered Carbons (OEC) Tops Q2 EPS by 17c, Revenues Miss
Orion Engineered Carbons (NYSE: OEC) reported Q2 EPS of $0.69, $0.17 better than the analyst estimate of $0.52. Revenue for the quarter came in at $391.6 million versus the consensus estimate of $400.97 million.
Second Quarter 2018 Year over Year Highlights
- Volumes increased by 3.4% to 275.6 kmt compared to 266.6 kmt in the second quarter of 2017 with increases of 3.9% of Specialty and 3.2% in Rubber
- Revenue increased by $62.0 million, or 18.8%, to $391.6 million compared to the second quarter of 2017
- Profit (Net Income) of $52.7 million increased by $34.3 million from $18.4 million in second quarter of 2017 and accordingly Basic EPS increased by $0.57 to $0.88, while Adjusted EPS1 increased $0.29 to $0.69
- Adjusted EBITDA1 increased $16.8 million or 26.1% to a record $81.1 million
- Specialty Carbon Black Adjusted EBITDA increased 17.8% or $6.8 million to $45.2 million
- Rubber Carbon Black Adjusted EBITDA increased 38.4% or $9.9 million to $35.9 million
- Dividend payments of 20 cents per share, a 5.65% increase compared to the second quarter of 2017
- Restructuring project to consolidate Korean production network successfully completed. Restructuring gain on disposal of plant site totaling $29.8 million
“Our strategy of profitable growth and improved production capabilities, along with improving demand/supply dynamics, keep us well positioned to take full advantage of improving global economic conditions. Having posted strong results for the first half of the year, boosted by healthy foreign exchange tailwinds, we expect that the benefits from foreign exchange will subside in the second half. This should moderate Specialty gross profit per ton off an exceptionally high second quarter level.
“Taking all of this into consideration, we are raising the floor of our Adjusted EBITDA guidance range and now expect to generate full year Adjusted EBITDA of $285 million to $300 million, with a weighting above the midpoint of this range assuming current exchange rates, feedstock cost levels and customer demand levels throughout the second half of 2018,” stated Mr. Clem.
For earnings history and earnings-related data on Orion Engineered Carbons (OEC) click here.