Orion increases rubber carbon black earnings despite lower sales

Houston, Texas – Orion Engineered Carbon has registered strong growth in rubber carbon black earnings for 2023, despite lower volumes and revenue.

The business unit reported adjusted earnings (EBITDA) of $221.6 million for 2023, up nearly 32% year-on-year on sales down 5.3% to $1,283.3 million.

Rubber black volumes fell by nearly 4% year-on-year to 710 kilotonnes, while sales dropped 5.3% to $1.28 billion, Orion announced 15 Feb.

The volume decline, said the company, was driven by subdued demand in most regions, including Americas and EMEA.

China, meanwhile, saw an increase in volumes, Orion added.

The decrease in sales was primarily linked to the pass-through effect of declining oil prices and lower volume, partially offset by improved contractual pricing.

Orion said the overall earnings improvement was due to higher contractual pricing, which was partially offset by lower volume.