HOUSTON—Orion Engineered Carbons has seen its rubber black earnings drop slightly in the second quarter as labor and administrative costs continued to mount.
The Houston-based carbon black supplier reported a 3.8-percent year-on-year decline in second quarter adjusted earnings (EBITDA) to $39 million, on 46.8-percent higher sales of $359.3 million.
Segment volumes increased by 9.5 metric kilotons, or 5.2-percent growth year-over-year, reflecting higher demand in Americas and Europe, Middle East and Africa, Orion reported Aug. 4.
Orion linked higher sales primarily to passing through of higher feedstock costs, pricing, higher volume and favorable product mix.
These, it said, were partially offset by the impact of unfavorable foreign currency translation and the strong dollar.
The decline in earnings was also driven by the $2.5 million impact of unfavorable foreign currency translation and the $11.5 million higher employment costs, lower inventory build and maintenance costs.