LUXEMBOURG—Orion Engineered Carbons reported declines in revenue despite a 10 percent increase in sales volumes.
Revenue decreased to $281.5 million, a nearly $47 million decline compared to 2015. The firm reported sales volumes at 277.8 kilotons, up from 252.9 kilotons in 2015.
Orion said the beginning of 2016 was similar to the end of 2015—a strong quarter with near double-digit volume growth that outpaced the market, exceptional performance from our specialty business and reasonably good results from the rubber business in very challenging market environments.
CEO Jack Clem said Orion would continue to take steps to address the negative effects of low oil price environment on its rubber business. He added that rubber carbon black business is going through difficult market conditions.
“On the rubber side, we will continue to work with our major tire customers to address imbalances between feedstock costs and product pricing,” Clem said.
The company will also implement productivity and efficiency measures and shift production capacity, as necessary, to more profitable technical rubber grades such as those sold to the MRG markets,' Clem said.