Q2 2024 Orion SA Earnings Call Transcript
Key Points
- Specialty business volumes improved by 17% year-over-year, indicating strong performance in this segment.
- Pricing in the rubber segment is up year-on-year, with expectations for further gains in 2025.
- Orion SA (OEC) plans to resume share repurchase activity, reflecting confidence in the company's valuation.
- The company is making significant progress in sustainability, including producing carbon black from biocircular feedstocks and investing in tire recycling.
- Orion SA (OEC) expects a positive outcome from the annual tire maker supply contract negotiations, driven by industry restructuring and potential tariff increases.
- Q2 EBITDA was below expectations, leading to a revised 2024 guidance midpoint that is $25 million to $30 million lower than initially projected.
- Lower-than-expected rubber segment volumes and adverse cogeneration significantly impacted financial performance.
- The company faced higher maintenance costs and unplanned maintenance activities, which negatively affected EBITDA.
- Rubber carbon black demand is soft in key markets due to consumer trade-down to lower-value brands and increased imports.
- European power prices have been below expectations, further challenging the company's cogeneration contributions.
Greetings, and welcome to the Orion SA Q2 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Kapsch, Vice President of Investor Relations. Thank you. You may begin.
Thank you, Sachi. Good morning, everyone, and welcome to Orion's conference call to discuss both second quarter 2024 results and to provide a midyear update on some strategic context, which we believe will be helpful for the investment community to consider.
This is Chris Kapsch, new to leading Orion Investor Relations efforts. I know many of you from prior roles and look forward to working with you in this new capacity. Joining our call today are Corning Painter, Orion's Chief Executive Officer; and Jeff Glajch, our Chief Financial Officer.
We issued our 2Q earnings after the close yesterday. We have posted a slide presentation to the Investor Relations portion of our website. We will be referencing this deck
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