HOUSTON—Orion Engineered Carbons S.A.'s rubber carbon black business was hit by high costs and the February deep freeze in the U.S., despite delivering higher year-on-year volumes during the first quarter of 2021.
Over the first three months of the year, rubber black volumes increased 3.3 percent to 1.8 million metric tons, helped by the global economic recovery, particularly in the Asia Pacific region.
Net sales declined marginally by $300,000, or 0.1 percent year-on-year, to $215.9 million due mainly to the pass through of feedstock costs, Orion said May 6.
Despite moderately higher volume, the segment's earnings (EBITDA) fell nearly 13 percent to $31.2 million.
Orion linked the decline primarily to higher selling, general and administrative expenses and the one-time $2-million impact related to Winter Storm Uri, which engulfed a number of U.S. states, northern Mexico and parts of Canada between Feb. 13-24.
Adjusted EBITDA margin declined 210 basis points to 14.4 percent, year over year.