Orion rubber black earnings decline on lower volumes

Houston, Texas – Orion SA has seen its full-year results for rubber carbon black business decline in 2024, due mainly to lower volumes in the Americas region.

The division’s adjusted earnings (adjusted EBITDA) fell 12.4% year-on-year to $194 million (€186 million), on 4.1% lower sales of $1.2 billion, Orion reported 19 Feb.

Volumes for the period fell 3.1% to 690 kilotonnes, due primarily to lower demand in the Americas, said the Houston-based carbon materials specialist.

Orion linked the sales decrease due to lower volumes, while the pass-through effect of lower oil prices was partially offset by favourable prices.

The volumes decline, lower co-generation benefits and higher fixed costs, partially offset by favourable pricing, impacted earnings during the year.

“Soft Western tire production levels – and consequently lower than expected rubber [carbon black] demand – was Orion’s single largest obstacle in 2024,” said CEO Corning Painter.

The Orion leader said the company addressed the issue partly through commercial strategy initiatives coming into 2025.

“This will blunt impact from the distorted tire industry trade flows, should they persist,” stated Painter.

Despite lingering end-market softness, foreign exchange headwinds, and uncertainty around the new US administration’s broader policies, Painter said Orion expects growth in 2025.

Gains, he said, will be underpinned by new rubber-supply agreements, as well as debottlenecked speciality production lines and other factors “in our control.”