LUXEMBOURG—Orion Engineered Carbons has posted a 10 percent increase in adjusted earnings (EBITDA) at $234.7 million despite a 7 percent drop in revenue at $1.37 billion for 2016.
Profit for the fiscal year also grew to $47 million from $45.1 million the previous year.
Orion had a strong fourth quarter with a 9.4 percent increase in adjusted earnings to $58.6 million. Rubber black adjusted EBITDA increased 12.9 percent to $26.7 million during the quarter.
Total volumes increased by 17.1kt (6.5 percent) to 280.6kt in the fourth quarter. The increase reflected a 10 percent gain in specialty carbon black volumes and a 5.6 percent gain in rubber carbon black volumes. Rubber black revenue rose 6.7 percent to $189.9 million in the fourth quarter with adjusted earnings up 12.9 percent at $26.7 million.
"We achieved solid volume growth in both our specialty and rubber businesses in the quarter, but specialty growth was especially strong, rising 10 percent versus the prior year," CEO Jack Clem said in a statement.
The growth in specialty volume more than offset some margin pressure as a result of a rise in the price of feedstock in the quarter, Clem said.
The rubber segment continued to benefit from the feedstock surcharges the company implemented earlier in the year and a strong fourth quarter contribution from the recently acquired business in Qingdao, China, Clem said.
Restructuring expenses for the period included personnel-related costs of $6.43 million following the closure of production plant in Ambes, France. Additionally, demolishing the plant, site remediation and other expenses for the cessation of the facility stood at $12.1 million.