LUXEMBOURG--(BUSINESS WIRE)--Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of
Specialty and High-Performance Carbon Black, today announced fourth
quarter 2016 financial results.
Full Year 2016 Highlights
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Net Income of €44.6 million and EPS of €0.75
-
2016 Full Year Adjusted EPS
1
€1.35 as
compared to €1.20 in 2015
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Adjusted EBITDA
1
of €222.8 million, at the
higher end of guidance
Fourth Quarter 2016 Highlights
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Total Carbon Black volumes increased 6.5% to 280.6 kmt with both
Specialty and Rubber Carbon Black businesses contributing to this
increase
-
Revenue of €276.3 million increased by €15.9 million, or 6.1%,
compared to the fourth quarter of 2015
-
Net Income of €18.6 million, EPS of €0.31 and Adjusted EPS of €0.39
-
Adjusted EBITDA
1
increased 9.4% to €55.6
million, with Specialty Carbon Black Adjusted EBITDA increasing 6.7%
to €30.3 million and Rubber Black Adjusted EBITDA increasing 12.9% to
€25.3 million
-
Specialty Carbon Black Adjusted EBITDA margin increased 40 basis
points year-over-year to 31.5% and Rubber Carbon Black Adjusted EBITDA
margin increased 80 basis points to 14.1%
-
Cash flow from operations of €51.5 million
1) See below for a reconciliation of non-IFRS financial measures to the
most directly comparable IFRS measures
“We ended 2016 with a strong fourth quarter, bringing to a close a
record year for carbon black volumes, Adjusted EBITDA and Adjusted
EBITDA margin. Our Adjusted EBITDA in the quarter rose 9.4% to €55.6
million, resulting in full year Adjusted EBITDA that hit the higher end
of our most recent guidance range,” said Jack Clem, Chief Executive
Officer. “We achieved solid volume growth in both our specialty and
rubber businesses in the quarter, but specialty growth was especially
strong, rising 10% versus the prior year. This strong growth in
specialty volume more than offset some margin pressure we experienced as
a result of a rise in the price of feedstock in the quarter. Our rubber
segment continued to benefit from the feedstock surcharges we
successfully implemented earlier in the year and a strong fourth quarter
contribution from the recently acquired business in Qingdao, China
(OECQ).”
“Consistent with our business model and strategy, we continued to see
strong cash generation,” concluded Mr. Clem. “Cash from operations
totaled €51.5 million in the quarter, well above our operational needs,
debt service and dividend coverage. As a result, in early January of
2017, we announced the voluntary repayment of another €20 million of
debt. We achieved a year-end leverage ratio of 2.50x, down from 2.89x at
the start of 2016.”
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Fiscal Year
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In EUR (except where noted)
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2016
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2015
|
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Fourth Quarter
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Fourth Quarter
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Volume (kmt)
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280.6
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263.5
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Revenue (million)
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276.3
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260.4
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Contribution Margin (million)
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117.7
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110.2
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Contribution Margin per metric ton
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419.4
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418.3
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Operating Result (EBIT) (million)
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36.7
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23.1
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Adjusted EBITDA (million)
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55.6
|
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50.8
|
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Profit for the Period (Net Income) (million)
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18.6
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1.5
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EPS
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0.31
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0.02
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Adjusted EPS
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0.39
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0.20
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Fourth Quarter 2016 Overview
Total volumes increased by 17.1 kmt, or 6.5%, to 280.6 kmt in the fourth
quarter of 2016 compared to 263.5 kmt in the fourth quarter of 2015. The
increase reflected a 10.0% gain in Specialty Carbon Black volumes and a
5.6% gain in Rubber Carbon Black volumes, of which the organic growth
rate was 2.1% adjusting for the acquisition of the OECQ business.
Revenue increased essentially in line with volumes by €15.9 million, or
6.1%, to €276.3 million in the fourth quarter of 2016 from €260.4
million in the fourth quarter of 2015, with the impact of full
consolidation of OECQ offsetting the impact of the decline in oil prices
compared to 2015.
Contribution Margin increased by €7.5 million, or 6.8%, to €117.7
million in the fourth quarter of 2016 from €110.2 million in the fourth
quarter of 2015, primarily driven by volume increases, the positive
impact of feedstock cost surcharges and increased base prices in Rubber
Carbon Black, the full consolidation of OECQ and positive foreign
exchange translation effects associated with the stronger US Dollar. As
a result, the Contribution Margin per metric ton (CM/mt) improved by
€1.1/mt in the fourth quarter of 2016 to €419.4/mt.
Adjusted EBITDA increased by €4.8 million, or 9.4% to €55.6 million in
fourth quarter of 2016 from €50.8 million in the fourth quarter of 2015
reflecting the increase in Contribution Margin.
Net Income for the fourth quarter of 2016 was €18.6 million compared to
€1.5 million in the fourth quarter of 2015 primarily due to the increase
in operating results, lower depreciation charges and lower costs
included in the financial result, partially as a result of the repayment
and repricing of OEC Group debt during the year. EPS in the fourth
quarter of 2016 were €0.31 compared to €0.02 in the fourth quarter of
2015, mainly as a result of the increase in Net Income. Weighted shares
outstanding used to calculate EPS were 59.3 million for the fourth
quarter of 2016 and 59.6 million for the fourth quarter of 2015.
Quarterly Business Results
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SPECIALTY CARBON BLACK
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Q4 2016
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Q4 2015
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Y-o-Y Comparison in %
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Volume (kmt)
|
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59.5
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54.1
|
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10.0
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Revenue in EUR million
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96.1
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91.5
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5.0
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Gross Profit in EUR million
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39.9
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38.7
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3.2
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Gross Profit/metric ton in EUR
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670.6
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714.2
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-6.1
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Adjusted EBITDA in EUR million
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30.3
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28.4
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6.7
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Adjusted EBITDA/metric ton in EUR
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509.0
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524.8
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-3.0
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Adjusted EBITDA Margin (%)
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31.5
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31.1
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40bps
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Volumes for the Specialty Carbon Black business increased by 10.0%,
reflecting increased global demand and continued penetration of both
existing and new markets. Strong growth in volumes drove revenue up by
€4.6 million.
Gross Profit of the business increased by €1.3 million, or 3.2%, due to
increased volumes, offset by negative effects associated with feedstock
costs and some price effects.
Adjusted EBITDA of the business increased by 6.7% to €30.3 million
reflecting the increase in Gross Profit and as a result, the Adjusted
EBITDA margin increased 40 basis points to 31.5%.
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RUBBER CARBON BLACK
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Q4 2016
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Q4 2015
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Y-o-Y Comparison in %
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Volume (kmt)
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221.1
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209.4
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5.6
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Revenue in EUR million
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180.2
|
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168.9
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6.7
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Gross Profit in EUR million
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47.1
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39.8
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18.4
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Gross Profit/metric ton in EUR
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213.1
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190.0
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12.2
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Adjusted EBITDA in EUR million
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25.3
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22.4
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12.9
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Adjusted EBITDA/metric ton in EUR
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114.6
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107.2
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6.9
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Adjusted EBITDA Margin (%)
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14.1
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13.3
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80bps
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Volumes of the Rubber Carbon Black business increased by 5.6%,
reflecting the full quarter effect of consolidating OECQ and increased
demand in Korea and Brazil. Revenue increased by €11.3 million,
primarily as a result of volume growth and the effect of oil price
surcharges, offset by oil price declines.
Gross profit of the business increased 18.4% to €47.1 million as a
result of volume growth, increased revenue, a reduction in depreciation
expense and the impact of full consolidation of OECQ.
Adjusted EBITDA of the business increased 12.9% to €25.3 million,
reflecting an increase in Gross Profit, adjusted for the change in
depreciation and offset by the timing of fixed cost spend and the
consolidation of fixed costs associated with OECQ.
Balance Sheet and Cash Flow
As of December 31, 2016, the Company had cash and cash equivalents of €
73.9 million, which represent an increase of €9.2 million from September
30, 2016. During the fourth quarter the Company paid a quarterly
dividend of €10 million, the regularly scheduled quarterly interest
payment of €9.7 million, and €1.9 million of mandatory debt repayment.
In January 2017, the Company made another voluntary debt repayment of
€20.0 million. Consistent with the Company's capital allocation plan,
the Company has now made voluntary debt repayments of €110 million since
December 2015.
The Company’s non-current indebtedness as of December 31, 2016 was
€613.5 million, composed of the non-current portion of term loan
liabilities (€623.2 million less transaction costs of €9.7 million) plus
€0.2 million of other long term debt. Net indebtedness, including the
€7.4 million current portion of term loan liabilities, was €556.7
million, which represents LTM Adjusted EBITDA multiple of 2.50 times.
Cash inflows from operating activities in the fourth quarter of 2016
amounted to €51.5 million, consisting of a consolidated profit for the
period of €18.6 million, adjusted for depreciation and amortization of
€18.4 million and the exclusion of finance costs of €10.2 million. Net
working capital totaled €182.0 million as of December 31, 2016, compared
to €190.4 million as of September 30, 2016. Net Working Capital ended
2016 at 63 days, reflecting continued effective working capital
management and some favorable one-off timing effects around the 2016
year-end holiday period.
Cash outflows from investing activities in the fourth quarter of 2016
amounted to €14.0 million composed of expenditures for improvements
primarily in the manufacturing network throughout the production system.
Cash outflows for financing activities in the fourth quarter of 2016
amounted to €29.6 million, consisting primarily of the quarterly
dividend, and the regular interest payment and debt repayment.
2017 Outlook
“2016 was a very good year for Orion,” stated Mr. Clem. “We set some
ambitious targets and executed well against them. We closed an
unprofitable facility and initiated the conversion of other facilities
to higher value products. We completed the integration of the plant in
Qingdao with immediate improvements in sales and mix. We addressed the
impact of feedstock cost dislocations in Europe, continued to expand our
specialty and technical grade growth and expanded sales of new grades
while continuing to improve the productivity and efficiency of our
facilities. The results are reflected in our record profitability in
2016.
“The past year prepares us for 2017, to profitably grow our volumes in
both the technical rubber and specialty segments, to expand our mix of
higher margin products and to continue improving our production network.
We are confident that our business model will continue to generate
strong cash flows to fund on-going capex needs and productivity
enhancement projects, meet our dividend commitment and continue to
deliver on our promise to de-lever our balance sheet.”
Consistent with this outlook and these objectives, the Company expects
full year Adjusted EBITDA for 2017 to be in the range of €220 million
and €240 million for 2017. This outlook is based on the assumptions that
volume growth will be in line with current GDP expectations and that oil
prices, exchange rates and feedstock impacts will be at average levels
seen during late in the fourth quarter of 2016.
Other guidance metrics for 2017 include shares outstanding of 59.3
million, an underlying tax rate of about 35% on pre-tax income, and
capital expenditures reflecting an operating run rate consistent with
the past of approximately €60 million but with the total rising to over
€80 million due to the expenditures associated with the consolidation of
our plants in Korea. The Company expects that cash proceeds derived from
the sale of its plant site in Seoul, Korea will more than offset all
capital expenditures and costs associated with this consolidation
project once consolidation of this plant into our Yeosu site in Southern
Korea is complete. Depreciation is estimated to be approximately €60
million, and amortization is estimated to be approximately €20 million
(including amortization of acquired intangibles of about €13 million) in
2017. This outlook does not give effect to any contingencies described
in Note 10.5 to our consolidated financial statements as at December 31,
2016.
Conference Call
As previously announced, Orion will hold a conference call tomorrow,
Friday, February 24th 2017, at 8:30 a.m. (EST). The dial-in
details for the live conference call are as follow:
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U.S. Toll Free:
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1-877-407-4018
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International:
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1-201-689-8471
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U.K. Toll Free:
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0 800 756 3429
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Germany Toll Free:
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0 800 182 0040
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Luxembourg Toll Free:
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800 28 522
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Luxembourg Local:
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352 2786 0689
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A replay of the conference call may be accessed by phone at the
following numbers through March 03, 2017:
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U.S. Toll Free:
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1-844-512-2921
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International:
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1-412-317-6671
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Conference ID:
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13651561
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Additionally, an archived webcast of the conference call will be
available on the Investor Relations section of the Company’s website at: www.orioncarbons.com.
To learn more about Orion, visit the Company’s website at www.orioncarbons.com.
Orion uses its website as a channel of distribution for material Company
information. Financial and other material information regarding Orion is
routinely posted on the Company’s website and is readily accessible.
About Orion Engineered Carbons
Orion is a worldwide supplier of Carbon Black. We produce
high-performance as well as standard Gas Blacks, Furnace Blacks, Lamp
Blacks, Thermal Blacks and other Specialty Carbon Blacks that tint,
colorize and enhance the performance of polymers, plastics, paints and
coatings, inks and toners, textile fibers, adhesives and sealants,
tires, and mechanical rubber goods such as automotive belts and hoses.
With approximately 1460 employees worldwide, Orion runs 14 global
production sites and four Applied Technology Centers. For more
information visit our website www.orioncarbons.com.
Forward Looking Statements
This document contains certain forward-looking statements with respect
to our financial condition, results of operations and business,
including those in the “2017 Outlook” and “Quarterly Business Results”
sections above. These statements constitute forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements are statements of future
expectations that are based on management’s current expectations and
assumptions and involve known and unknown risks and uncertainties that
could cause actual results, performance or events to differ materially
from those expressed or implied in these statements. Forward-looking
statements include, among others, statements concerning the potential
exposure to market risks, statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and assumptions
and statements that are not limited to statements of historical or
present facts or conditions. Some of these statements can be identified
by terms and phrases such as “anticipate,” “believe,” “intend,”
“estimate,” “expect,” “continue,” “could,” “should,” “may,” “plan,”
“project,” “predict” and similar expressions. Factors that could cause
our actual results to differ materially from those expressed or implied
in such forward-looking statements include those factors detailed under
the captions “Note Regarding Forward-Looking Statements” and “Risk
Factors” in our Annual Report on Form 20-F for the year ended December
31, 2016 and in Note 10 to our audited consolidated financial statements
regarding contingent liabilities, including litigation. You should not
place undue reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date of the particular statement. New
risk factors and uncertainties emerge from time to time and it is not
possible for our management to predict all risk factors and
uncertainties, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in
any forward-looking statements. We undertake no obligation to publicly
update or revise any forward-looking statement - including those in the
“2017 Outlook” and “Quarterly Business Results” sections above - as a
result of new information, future events or other information, other
than as required by applicable law.
Reconciliation of Non-IFRS Financial Measures
In this release we refer to Adjusted EBITDA, Contribution Margin and
Adjusted EPS, which are financial measures that have not been prepared
in accordance with International Financial Reporting Standards as issued
by the International Accounting Standards Board (“IFRS”) or the
accounting standards of any other jurisdiction and may not be comparable
to other similarly titled measures of other companies. Adjusted EBITDA
is defined as operating result (EBIT) before depreciation and
amortization, adjusted for acquisition related expenses, restructuring
expenses, consulting fees related to group strategy, share of profit or
loss of joint venture and certain other items. Adjusted EBITDA is used
by our management to evaluate our operating performance and make
decisions regarding allocation of capital because it excludes the
effects of certain items that have less bearing on the performance of
our underlying core business. Our use of Adjusted EBITDA has limitations
as an analytical tool, and you should not consider it in isolation or as
a substitute for analysis of our financial results as reported under
IFRS. Some of these limitations are: (a) although Adjusted EBITDA
excludes the impact of depreciation and amortization, the assets being
depreciated and amortized may have to be replaced in the future and thus
the cost of replacing assets or acquiring new assets, which will affect
our operating results over time, is not reflected; (b) Adjusted EBITDA
does not reflect interest or certain other costs that we will continue
to incur over time and will adversely affect our profit or loss, which
is the ultimate measure of our financial performance and (c) other
companies, including companies in our industry, may calculate Adjusted
EBITDA or similarly titled measures differently. Because of these and
other limitations, you should consider Adjusted EBITDA alongside our
other IFRS-based financial performance measures, such as consolidated
profit or loss for the period.
Contribution Margin is calculated by subtracting variable costs (such as
raw materials, packaging, utilities and distribution costs) from our
revenue. We believe that Contribution Margin and Contribution Margin per
Metric Ton are useful because we see these measures as indicating the
portion of revenue that is not consumed by such variable costs and
therefore contributes to the coverage of all other costs and profits.
Adjusted EPS is defined as profit or loss for the period adjusted for
acquisition related expenses, restructuring expenses, consulting fees
related to group strategy, certain other items (such as amortization
expenses related to intangible assets acquired from our predecessor and
foreign currency revaluation impacts) and assumed taxes, divided by the
weighted number of shares outstanding. Adjusted EPS provides guidance
with respect to our underlying business performance without regard to
the effects of (a) foreign currency fluctuations, (b) the amortization
of intangible assets which other companies may record as goodwill having
an indefinite lifetime and thus no amortization and (c) our start-up and
initial public offering costs. Other companies may use a similarly
titled financial measure that is calculated differently from the way we
calculate Adjusted EPS.
We define Net Working Capital as the total of inventories and current
trade receivables, less trade payables. Net Working Capital is a
non-IFRS financial measure, and other companies may use a similarly
titled financial measure that is calculated differently from the way we
calculate Net Working Capital.
The following tables present a reconciliation of each of Adjusted EBITDA
and Adjusted EPS to the most directly comparable IFRS measure:
|
Reconciliation of profit or (loss)
|
|
|
Fourth Quarter
|
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Fiscal Year
|
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|
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2016
|
|
|
2015
|
|
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2016
|
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2015
|
|
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In EUR k
|
|
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In EUR k
|
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In EUR k
|
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In EUR k
|
|
Adjusted EBITDA
|
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55,638
|
|
|
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50,848
|
|
|
|
222,766
|
|
|
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208,710
|
|
|
Share of profit of joint venture
|
|
|
(121
|
)
|
|
|
(121
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)
|
|
|
(419
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)
|
|
|
(492
|
)
|
|
Restructuring expenses (1)
|
|
|
(20
|
)
|
|
|
-
|
|
|
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(17,623
|
)
|
|
|
-
|
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Consulting fees related to Group strategy (2)
|
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(500
|
)
|
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(1,320
|
)
|
|
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(2,563
|
)
|
|
|
(1,502
|
)
|
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Long Term Incentive Plan
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(1,363
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)
|
|
|
(496
|
)
|
|
|
(3,575
|
)
|
|
|
(907
|
)
|
|
Other adjustments (3)
|
|
|
1,500
|
|
|
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(5,081
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)
|
|
|
(5,078
|
)
|
|
|
(10,638
|
)
|
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EBITDA
|
|
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55,134
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|
|
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43,830
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|
|
|
193,508
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|
|
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195,171
|
|
|
Depreciation, amortization and impairment of intangible assets and
property, plant and equipment (4)
|
|
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(18,440
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)
|
|
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(20,733
|
)
|
|
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(88,716
|
)
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|
|
(72,778
|
)
|
|
Earnings before taxes and finance income/costs (operating result
(EBIT))
|
|
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36,694
|
|
|
|
23,097
|
|
|
|
104,792
|
|
|
|
122,393
|
|
|
Other finance income
|
|
|
6,109
|
|
|
|
(3,759
|
)
|
|
|
25,145
|
|
|
|
17,275
|
|
|
Share of profit of joint ventures
|
|
|
121
|
|
|
|
121
|
|
|
|
419
|
|
|
|
492
|
|
|
Finance costs
|
|
|
(16,410
|
)
|
|
|
(11,253
|
)
|
|
|
(62,490
|
)
|
|
|
(73,448
|
)
|
|
Income taxes
|
|
|
(7,903
|
)
|
|
|
(6,718
|
)
|
|
|
(23,240
|
)
|
|
|
(23,838
|
)
|
|
Profit or (loss) for the period
|
|
|
18,611
|
|
|
|
1,488
|
|
|
|
44,626
|
|
|
|
42,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) Restructuring Expenses for the period ended December 31, 2016 relate
to the strategic realignment of the worldwide Rubber footprint,
resulting in a decision by the management of the OEC SAS, Ambès, France
to cease production by December 31, 2016. These expenses comprise
personnel related costs of €6.1 million and demolishing, site
remediation and securing as well as accrued other expenses for the
cessation of €11.5 million. Restructuring expenses for the period ended
December 31, 2014 primarily include personnel-related costs and
IT-related costs.
(2) Consulting fees related to the Group strategy include external
consulting fees from establishing and implementing our operating, tax
and organizational strategies including merger and acquisition
strategies.
(3) Other adjustments (from items with less bearing on the underlying
performance of the Company's core business) in the period ended
December 31, 2016 primarily relate to costs of €4.1 million associated
with our EPA enforcement action (including accrued expenses for
penalties and mitigation projects). Other adjustments in 2015 mainly
include EUR 5.0 million costs related to address the EPA enforcement
action, in particular to evaluate emission-removal technologies and
legal advice, EUR 1.8 million Sarbanes-Oxley first time implementation
costs, EUR 1.8 million OECQ post acquisition-related costs and EUR 1.5
million reassessed real estate transfer tax related to the 2011
acquisition.
(4) Includes €10.3 million impairment of fixed assets at our Ambès,
France plant for the period ended December 31, 2016 following the
decision to cease production by December 31, 2016.
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|
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|
|
Adjusted EPS
|
|
|
Fourth Quarter
|
|
|
|
Fiscal Year
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
In EUR k
|
|
|
|
In EUR k
|
|
|
|
In EUR k
|
|
|
|
In EUR k
|
|
Net Income in EUR k
|
|
|
18,611
|
|
|
|
|
1,488
|
|
|
|
|
44,626
|
|
|
|
|
42,874
|
|
|
add back NRIs
|
|
|
(980
|
)
|
|
|
|
6,896
|
|
|
|
|
25,264
|
|
|
|
|
13,046
|
|
|
add back Segment Impairment
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
10,297
|
|
|
|
|
-
|
|
|
add back LTIP
|
|
|
1,363
|
|
|
|
|
496
|
|
|
|
|
3,575
|
|
|
|
|
907
|
|
|
add back amortization
|
|
|
3,269
|
|
|
|
|
3,271
|
|
|
|
|
13,063
|
|
|
|
|
13,077
|
|
|
add back foreign exchange rate impacts
|
|
|
2,645
|
|
|
|
|
2,475
|
|
|
|
|
(1,341
|
)
|
|
|
|
11,743
|
|
|
Amortization of Transaction Costs
|
|
|
847
|
|
|
|
|
826
|
|
|
|
|
3,098
|
|
|
|
|
3,304
|
|
|
Release Transaction cost due to redemption
|
|
|
37
|
|
|
|
|
1,500
|
|
|
|
|
712
|
|
|
|
|
1,500
|
|
|
Tax effect on add back items at 35% estimated tax rate
|
|
|
(2,514
|
)
|
|
|
|
(5,300
|
)
|
|
|
|
(19,134
|
)
|
|
|
|
(15,150
|
)
|
|
Adjusted Net Income in EUR k
|
|
|
23,279
|
|
|
|
|
11,652
|
|
|
|
|
80,160
|
|
|
|
|
71,301
|
|
|
Adjusted EPS in EUR
|
|
|
0.39
|
|
|
|
|
0.2
|
|
|
|
|
1.351
|
|
|
|
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total add back items in EUR k
|
|
|
4,668
|
|
|
|
|
10,332
|
|
|
|
|
35,534
|
|
|
|
|
28,605
|
|
|
Impact add back items per share in EUR
|
|
|
0.08
|
|
|
|
|
0.17
|
|
|
|
|
0.6
|
|
|
|
|
0.48
|
|
|
+ Earnings per Share (EUR per Share), basic in EUR
|
|
|
0.31
|
|
|
|
|
0.02
|
|
|
|
|
0.75
|
|
|
|
|
0.72
|
|
|
Adjusted EPS in EUR
|
|
|
0.39
|
|
|
|
|
0.20
|
|
|
|
|
1.35
|
|
|
|
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward-looking Adjusted EBITDA included in this release is not
reconcilable to the most directly comparable IFRS measure without
unreasonable efforts, because we are not able to predict with reasonable
certainty the ultimate amount or nature of adjustment items in the
fiscal year. These items are uncertain, depend on many factors and could
have a material impact on our IFRS reported results for the guidance
period.
|
|
|
Consolidated income statements of Orion Engineered Carbons S.A.
for the three months and fiscal years ended December 31, 2016
and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
Fiscal Year
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
In EUR k
|
|
|
|
In EUR k
|
|
|
|
In EUR k
|
|
|
|
In EUR k
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
276,276
|
|
|
|
|
260,365
|
|
|
|
|
1,030,094
|
|
|
|
|
1,111,776
|
|
|
Cost of sales
|
|
|
|
(189,252
|
)
|
|
|
|
(181,928
|
)
|
|
|
|
(691,784
|
)
|
|
|
|
(791,467
|
)
|
|
Gross profit
|
|
|
|
87,024
|
|
|
|
|
78,437
|
|
|
|
|
338,310
|
|
|
|
|
320,309
|
|
|
Selling expenses
|
|
|
|
(30,674
|
)
|
|
|
|
(27,473
|
)
|
|
|
|
(114,553
|
)
|
|
|
|
(108,100
|
)
|
|
Research and development costs
|
|
|
|
(3,812
|
)
|
|
|
|
(2,879
|
)
|
|
|
|
(14,530
|
)
|
|
|
|
(13,404
|
)
|
|
General and administrative expenses
|
|
|
|
(17,757
|
)
|
|
|
|
(16,816
|
)
|
|
|
|
(68,560
|
)
|
|
|
|
(62,107
|
)
|
|
Other operating income
|
|
|
|
4,260
|
|
|
|
|
2,469
|
|
|
|
|
5,862
|
|
|
|
|
7,456
|
|
|
Other operating expenses
|
|
|
|
(2,327
|
)
|
|
|
|
(10,641
|
)
|
|
|
|
(13,817
|
)
|
|
|
|
(21,761
|
)
|
|
Restructuring expenses
|
|
|
|
(20
|
)
|
|
|
|
-
|
|
|
|
|
(27,920
|
)
|
|
|
|
-
|
|
|
Operating result (EBIT)
|
|
|
|
36,694
|
|
|
|
|
23,097
|
|
|
|
|
104,792
|
|
|
|
|
122,393
|
|
|
Finance income
|
|
|
|
6,109
|
|
|
|
|
(3,759
|
)
|
|
|
|
25,145
|
|
|
|
|
17,275
|
|
|
Finance costs
|
|
|
|
(16,410
|
)
|
|
|
|
(11,253
|
)
|
|
|
|
(62,490
|
)
|
|
|
|
(73,448
|
)
|
|
Share of profit or loss of joint ventures
|
|
|
|
121
|
|
|
|
|
121
|
|
|
|
|
419
|
|
|
|
|
492
|
|
|
Financial result
|
|
|
|
(10,180
|
)
|
|
|
|
(14,891
|
)
|
|
|
|
(36,926
|
)
|
|
|
|
(55,681
|
)
|
|
Profit or (loss) before income taxes
|
|
|
|
26,514
|
|
|
|
|
8.206
|
|
|
|
|
67.866
|
|
|
|
|
66.712
|
|
|
Income taxes
|
|
|
|
(7,903
|
)
|
|
|
|
(6,718
|
)
|
|
|
|
(23,240
|
)
|
|
|
|
(23,838
|
)
|
|
Profit or (loss) for the period
|
|
|
|
18,611
|
|
|
|
|
1,488
|
|
|
|
|
44,626
|
|
|
|
|
42,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (EUR per share), basic
|
|
|
|
0.31
|
|
|
|
|
0.02
|
|
|
|
|
0.75
|
|
|
|
|
0.72
|
|
|
Weighted average shares, basic (in thousand of shares)
|
|
|
|
59,320
|
|
|
|
|
59,635
|
|
|
|
|
59,353
|
|
|
|
|
59,635
|
|
|
Earnings per share (EUR per share), diluted
|
|
|
|
0.31
|
|
|
|
|
0.02
|
|
|
|
|
0.74
|
|
|
|
|
0.72
|
|
|
Weighted average shares, diluted (in thousand of shares)
|
|
|
|
60,465
|
|
|
|
|
60,099
|
|
|
|
|
60,154
|
|
|
|
|
59,830
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of financial position of Orion
Engineered Carbons S.A.
as at December 31, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
In EUR k
|
|
|
In EUR k
|
|
Non-current assets
|
|
|
|
|
|
|
|
Goodwill
|
|
|
48,512
|
|
|
|
48,512
|
|
|
Other intangible assets
|
|
|
77,984
|
|
|
|
94,803
|
|
|
Property, plant and equipment
|
|
|
387,727
|
|
|
|
385,856
|
|
|
Investment in joint ventures
|
|
|
4,657
|
|
|
|
4,657
|
|
|
Other financial assets
|
|
|
2,178
|
|
|
|
3,049
|
|
|
Other assets
|
|
|
2,858
|
|
|
|
3,698
|
|
|
Deferred tax assets
|
|
|
60,955
|
|
|
|
55,254
|
|
|
|
|
|
584,871
|
|
|
|
595,829
|
|
|
Current assets
|
|
|
|
|
|
|
|
Inventories
|
|
|
114,351
|
|
|
|
105,111
|
|
|
Trade receivables
|
|
|
190,503
|
|
|
|
172,123
|
|
|
Other financial assets
|
|
|
5,264
|
|
|
|
3,126
|
|
|
Other assets
|
|
|
21,985
|
|
|
|
20,321
|
|
|
Income tax receivables
|
|
|
7,704
|
|
|
|
8,750
|
|
|
Cash and cash equivalents
|
|
|
73,907
|
|
|
|
65,261
|
|
|
|
|
|
413,714
|
|
|
|
374,692
|
|
|
|
|
|
998,585
|
|
|
|
970,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
In EUR k
|
|
|
In EUR k
|
|
Equity
|
|
|
|
|
|
|
|
Subscribed capital
|
|
|
59,635
|
|
|
|
59,635
|
|
|
Treasury shares
|
|
|
(3,415
|
)
|
|
|
-
|
|
|
Reserves
|
|
|
(47,964
|
)
|
|
|
(52,823
|
)
|
|
Profit for the period
|
|
|
44,626
|
|
|
|
42,874
|
|
|
|
|
|
52,882
|
|
|
|
49,686
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
Pension provisions
|
|
|
54,736
|
|
|
|
44,994
|
|
|
Other provisions
|
|
|
13,747
|
|
|
|
15,456
|
|
|
Financial liabilities
|
|
|
613,659
|
|
|
|
650,782
|
|
|
Other liabilities
|
|
|
425
|
|
|
|
138
|
|
|
Deferred tax liabilities
|
|
|
44,557
|
|
|
|
40,052
|
|
|
|
|
|
727,124
|
|
|
|
751,422
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Other provisions
|
|
|
60,056
|
|
|
|
38,057
|
|
|
Trade payables
|
|
|
122,913
|
|
|
|
94,213
|
|
|
Other financial liabilities
|
|
|
5,465
|
|
|
|
4,750
|
|
|
Income tax liabilities
|
|
|
16,759
|
|
|
|
16,443
|
|
|
Other liabilities
|
|
|
13,386
|
|
|
|
15,950
|
|
|
|
|
|
218,579
|
|
|
|
169,413
|
|
|
|
|
|
998,585
|
|
|
|
970,521
|
|
|
|
|
|
|
|
Consolidated statements of cash flows of Orion Engineered
Carbons S.A.
for the years ended December 31, 2016 and
2015
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Profit or (loss) for the period
|
|
|
44,626
|
|
|
|
42,874
|
|
|
Income taxes
|
|
|
23,240
|
|
|
|
23,838
|
|
|
Profit or (loss) before income taxes
|
|
|
67,866
|
|
|
|
66,712
|
|
|
Depreciation and impairment of property, plant and equipment and
amortization of intangible assets
|
|
|
88,716
|
|
|
|
72,778
|
|
|
Other non-cash expenses
|
|
|
3,103
|
|
|
|
957
|
|
|
(Increase)/decrease in trade receivables
|
|
|
(14,059
|
)
|
|
|
46,839
|
|
|
(Increase)/decrease in inventories
|
|
|
(8,227
|
)
|
|
|
25,777
|
|
|
Increase/(decrease) in trade payables
|
|
|
29,856
|
|
|
|
(28,425
|
)
|
|
Increase/(decrease) in provisions
|
|
|
16,374
|
|
|
|
(8,831
|
)
|
|
Increase/(decrease) in other assets and liabilities that cannot be
allocated to investing or financing activities
|
|
|
(4,338
|
)
|
|
|
(7,078
|
)
|
|
Finance income
|
|
|
(25,145
|
)
|
|
|
(17,275
|
)
|
|
Finance costs
|
|
|
62,490
|
|
|
|
73,448
|
|
|
Cash paid for income taxes
|
|
|
(17,486
|
)
|
|
|
(10,540
|
)
|
|
Cash flows from operating activities
|
|
|
199,150
|
|
|
|
214,362
|
|
|
Cash paid for the acquisition of intangible assets and property,
plant and equipment
|
|
|
(64,296
|
)
|
|
|
(51,541
|
)
|
|
Cash flows to acquire entities less cash acquired
|
|
|
2,126
|
|
|
|
(23,240
|
)
|
|
Cash flows from investing activities
|
|
|
(62,170
|
)
|
|
|
(74,781
|
)
|
|
Proceeds from borrowings, net of transaction costs
|
|
|
-
|
|
|
|
-
|
|
|
Repayments of non-current financial liabilities
|
|
|
(47,357
|
)
|
|
|
(56,825
|
)
|
|
Repayments of short term borrowings
|
|
|
-
|
|
|
|
(5,680
|
)
|
|
Interest and similar expenses paid
|
|
|
(42,629
|
)
|
|
|
(41,894
|
)
|
|
Interest and similar income received
|
|
|
2,988
|
|
|
|
862
|
|
|
Dividends paid to shareholders
|
|
|
(39,994
|
)
|
|
|
(40,000
|
)
|
|
Cash flows from financing activities
|
|
|
(130,407
|
)
|
|
|
(143,537
|
)
|
|
|
|
|
|
|
|
|
|
Change in cash
|
|
|
6,573
|
|
|
|
(3,956
|
)
|
|
Change in cash resulting from exchange rate differences
|
|
|
2,073
|
|
|
|
(1,327
|
)
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
65,261
|
|
|
|
70,544
|
|
|
Cash and cash equivalents at the end of the period
|
|
|
73,907
|
|
|
|
65,261
|
|
