NYSE$OEC

Orion SA · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Orion Engineered Carbons S.A. announced first quarter 2020 financial results, demonstrating resilience amidst the pandemic.

Orion Engineered Carbons S.A. reported net sales of $336.0 million and a net income of $18.0 million for Q1 2020. The company swiftly implemented a business continuity plan in response to COVID-19, protecting employees and supporting customers. Adjusted EBITDA was $63.8 million, reflecting the impact of tire customer plant shutdowns in late March.

  • Implemented business continuity plan to protect employees and production capabilities.
  • Suspended dividend to enhance financial flexibility and bolster cash position.
  • Delivered Adjusted EBITDA of $63.8 million despite significant market disruptions.
  • Focused on maintaining reliable supply and supporting customers through the pandemic.

Headline financials

Total Revenue

$336M

Previous: $385M-12.7%
EPS (adj)

$0.44

Previous: $0.40+10.0%
Adjusted EBITDA

$63.8M

Previous: $64.6M-1.2%
Net Income

$18M

Previous: $24.7M-27.3%
Operating Income

$37.5M

Previous: $41.5M-9.5%
Gross Profit

$90.2M

Previous: $104M-13.3%
Cash & Equivalents

$108M

Previous: $60.9M+76.5%
Total Assets

$1.32B

Previous: $1.27B+4.0%
Stock-Based Comp

-$1.14M

Previous: $3.55M-132.1%

Revenue & EPS history

Orion · Revenue · Quarterly

$336M

Q1 2020-12.7%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Orion · $336M total across 2 segments · Q1 2020

  • Rubber Carbon Black
    $216M-14.6%
  • Specialty Carbon Black
    $120M-9.0%

Forward guidance

While the ultimate economic impact of COVID-19 is uncertain, Orion believes its markets are strong and driving will be a popular mode of transportation. The company has a strong team, a technologically diverse Carbon Black franchise, a sound balance sheet, and substantial liquidity to weather the downturn.

Tailwinds

  • Markets are ultimately strong, possibly even stronger now.
  • Driving will be a very popular mode of transportation.
  • Replacement tires drive 60% of rubber carbon black demand.
  • One of the strongest, most technologically diverse Carbon Black franchises in the world has been developed.
  • Substantial liquidity to withstand this economic downturn.

Headwinds

  • Impossible to know the ultimate dimensions of the economic impact of COVID-19.
  • New car sales may be slow at first.
  • More than 75 percent of tire plants served by OEC were fully or partially idled in April.
  • OEC plants at about mid-40s percent utilization in April
  • Tire manufacturing plant restarts expected to occur slowly

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+0.2%

Avg return

30 days after

57%

26 / 46 earnings

Positive

+10.0%

Q4 2022

Best reaction

-27.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-12.3%-8.5%-18.0%
Q4 2025-19.8%-14.5%-26.9%
Q3 2025-8.4%-1.0%+1.6%
Q1 2025-10.6%-0.8%+0.5%
Q4 2024+3.3%-0.4%-8.3%
Q3 2024-5.9%+5.3%+7.9%
Q2 2024-27.4%-28.0%-24.2%
Q1 2024-0.0%+4.0%+5.3%
Q4 2023+1.6%+0.8%-1.6%
Q3 2023+4.5%+4.1%+20.6%
Q2 2023+5.5%+4.0%+4.8%
Q1 2023+6.7%-0.2%+11.2%
Q4 2022+10.0%+11.4%+10.7%
Q3 2022+6.2%+11.1%+20.7%
Q2 2022-8.0%-8.1%-3.8%
Q1 2022+1.7%+0.8%+22.6%
Q4 2021-9.5%-19.4%-18.7%
Q3 2021+0.8%-0.4%-10.8%
Q2 2021+1.4%+0.2%+3.9%
Q1 2021-1.1%-6.1%-7.4%
Q4 2020-2.0%+2.0%+19.1%
Q3 2020-6.2%+3.2%+14.0%
Q2 2020+9.4%+11.4%+15.7%
Q1 2020+4.9%-5.5%+54.9%
Q4 2019+6.9%-5.7%-54.6%
Q3 2019+8.9%+15.9%+8.1%
Q2 2019-20.8%-29.5%-28.6%
Q1 2019+4.9%+2.9%-11.2%
Q4 2018-19.3%-22.6%-27.5%
Q3 2018+8.2%+2.1%+1.2%
Q2 2018+8.0%+9.5%+10.3%
Q1 2018+0.0%+1.5%+19.8%
Q4 2017+1.3%-0.4%-8.9%
Q3 2017+0.6%+2.8%+2.8%
Q2 2017+2.6%-2.6%+3.8%
Q1 2017+0.5%-2.9%-7.4%
Q4 2016-1.0%-0.7%-9.3%
Q3 2016+3.4%+1.1%+0.8%
Q2 2016+7.0%+6.4%+13.1%
Q1 2016+9.1%
Q4 2015+1.8%
Q3 2015-6.7%
Q2 2015-0.7%
Q1 2015-0.3%
Q4 2014+1.5%
Q3 2014-2.1%
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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