LUXEMBOURG--(BUSINESS WIRE)--Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of
Specialty and High-Performance Carbon Black, today announced fourth
quarter 2015 financial results.
Full Year 2015 Highlights
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2015 Full Year Adjusted EPS €1.20 versus €0.32 in 2014
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2015 Full Year Adjusted EBITDA €208.7 million near the high end of
guidance
Fourth Quarter 2015 Highlights
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Total carbon black volumes increased 10.1% to 263.5 kmt with both
Specialty and Rubber Carbon Black businesses contributing to this
increase
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Revenue decreased by €56.5 million to €260.4 million or 17.8%
compared to fourth quarter of 2014 as a portion of lower feedstock
costs were passed along to customers mainly via indexed pricing
agreements in the form of reduced sales prices
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Adjusted EBITDA1 increased 4.9% to €50.9
million, with Specialty Carbon Black business EBITDA rising 40.5% to
€28.4 million, offsetting Rubber Black business EBITDA falling 20.6%
to €22.4 million
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Specialty Carbon Black business Adjusted EBITDA margin increased
980 basis points year-over-year to 31.1%
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After prolonged negotiations with the former owners, purchased
Orion Engineered Carbons Qingdao Ltd. (“OECQ”)
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Cash flow from operations of €62.3 million, providing more than 3X
interest and dividend coverage
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Net Income of €1.5 million
“We ended 2015 on a strong note with a fourth quarter that was not only
at the high end of our expectations but was one that clearly
demonstrated our ability to execute in a difficult and rapidly evolving
market environment and produce solid EBITDA and operating cash flow,”
said Jack Clem, Chief Executive Officer. “Our total volume in the
quarter was up more than 10% with comparable volume gains in both our
Specialty and Rubber Carbon Black businesses. Our Specialty Carbon Black
business realized strong gains in both volumes and profits as a result
of growing volumes and an ability to manage price in the face of lower
feedstock costs, more than offsetting weaker profitability in our Rubber
Carbon Black business, which was hurt by cost and price developments
related to these sharply lower feedstock costs.”
“Most importantly, we continued to drive vigorous cash flow,” continued
Mr. Clem. “Our adjusted EBITDA of €50.9 million generated strong cash
flow from operations of €62.3 million. Cashflow in 2015 was more than
enough to fund required maintenance capex, support ongoing productivity
improvements, service our debt, cover our dividend and allow us to repay
on a voluntary basis €70 million of our debt of which €50 million was
repaid in December 2015, with the remainder paid in January 2016. As a
result of these debt repayments, our annual interest burden will
decrease by €3.5 million. With our broad portfolio of products,
geographically balanced customer base and differentiated innovation and
technical expertise, we remain well positioned to sustain our market
leadership, drive profitable volume growth and generate strong cash
flow.”
1) See below for a reconciliation of non-IFRS financial measures to the
most directly comparable IFRS measures
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In EUR (except where noted)
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Fiscal Year
2015
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Fiscal Year
2014
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Fourth
Quarter
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Fourth
Quarter
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Volume (kmt)
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263.5
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239.3
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Revenue
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260.4m
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316.8m
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Contribution Margin
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110.2m
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103.5m
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Contribution Margin/metric ton
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418.3
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432.5
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Operating Result (EBIT)
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23.1m
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21.6m
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Adjusted EBITDA
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50.9m
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48.5m
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Profit or Loss for the Period (Net Income)
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1.5m
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(8.3)m
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EPS
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0.02
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(0.14)
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Adjusted EPS
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0.20
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0.09
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Fourth Quarter 2015 Overview
Total volumes increased by 24.2 kmt or 10.1% to 263.5 kmt in the fourth
quarter of 2015 compared to 239.3 kmt in the fourth quarter of 2014. The
increase reflected a 10.9% gain in Specialty Carbon Black volumes and a
gain of 9.9% in the Rubber Carbon Black volumes. The Chinese
acquisition, OECQ, contributed 11.4 kmt of Rubber volume in the fourth
quarter of 2015.
While volumes in the quarter rose strongly, outstripping underlying
market growth, revenue decreased by €56.5 million, or 17.8%, to €260.4
million in the quarter from €316.8 million in the prior year quarter.
This revenue decrease was primarily due to contracted indexed sales
price declines resulting from pass through of lower feedstock costs and,
to a much lesser extent, regional product mix. Partially offsetting
these negatives factors were the increased volumes and positive foreign
exchange translation effects due to a stronger US Dollar.
Contribution Margin increased by €6.7 million, or 6.5%, to €110.2
million in the quarter from €103.5 million in the fourth quarter of
2014, primarily driven by volume increases and the benefit of foreign
exchange translation effects associated primarily with the stronger US
Dollar. Partially offsetting these positive factors were unfavorable
feedstock differentials, product mix effects and other negative price
effects associated with declining feedstock costs. The Contribution
Margin per metric ton (CM/mt) declined by €14.2/mt in the fourth quarter
of 2015 as a result of unfavorable feedstock cost developments primarily
in the Rubber Carbon Black business and a change in product mix
partially offset by positive foreign exchange translation effects.
Adjusted EBITDA increased by €2.4 million, or 4.9% to €50.9 million in
fourth quarter of 2015 from €48.5 million in the fourth quarter of 2014.
The year-over-year increase reflects the development of the contribution
margin partially offset by unfavorable foreign exchange translation
impacts associated with our fixed cost base.
Net Income for the fourth quarter was €1.5 million versus a loss of
€(8.3) million in 2014 primarily due to an increase in operating results
and lower costs included in the financial result. EPS in the fourth
quarter of 2015 were €0.02, versus a loss of €(0.14) in the prior year.
Weighted shares outstanding used to calculate EPS were 59.635 million
for the fourth quarter of both 2015 and 2014. Adjusted EPS in the fourth
quarter of 2015 was €0.20 versus €0.09 in the prior year, and excludes
the impact of one offs or non-operating items, amortization of acquired
intangible assets and foreign currency effects impacting financial
results (all net of calculated taxes).
Quarterly Business Results
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SPECIALTY CARBON BLACK
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In EUR (except where noted)
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Q4 2015
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Q4 2014
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Y-o-Y Comparison
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Volume (kmt)
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54.1
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48.8
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10.9%
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Revenue
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91.5m
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94.7m
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(3.4)%
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Gross Profit
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38.6m
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29.1m
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32.9%
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Gross Profit/metric ton
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714.2
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596.0
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19.8%
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Adjusted EBITDA
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28.4m
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20.2m
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40.5%
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Adjusted EBITDA/metric ton
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524.8
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414.1
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26.7%
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Adjusted EBITDA Margin (%)
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31.1
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21.3
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980bps
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Volumes for the Specialty Carbon Black business increased by 10.9%,
reflecting increased global demand and continued penetration of both
existing and new markets, especially in Asia Pacific. Despite the very
strong growth in volumes, revenue decreased by €3.2 million due to price
declines resulting from the contracted pass through of reduced feedstock
costs to customers and to product mix. These negative effects on
revenues were partially offset by foreign exchange translation effects
primarily from a stronger US Dollar.
Gross Profit of the business increased by €9.6 million, or 32.9%, due to
increased volumes, oil price pass through effects and a favorable
foreign exchange translation effects mainly associated with the stronger
US Dollar. Additionally, depreciation decreased by €0.2 million, as a
result of an asset review in early 2015, which has been offset with
foreign exchange effects and depreciation from additional capital
investment.
Adjusted EBITDA of the business increased by 40.5% to €28.4 million
reflecting the increase in Gross Profit offset by the impact of
unfavorable foreign exchange effects associated with selling, R&D, and
general & administrative expenses. The Adjusted EBITDA margin increased
980 basis points to 31.1%, reflecting improved profitability and also
the effect of the decline in feedstock costs on revenues.
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RUBBER CARBON BLACK
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In EUR (except where noted)
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Q4 2015
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Q4 2014
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Y-o-Y Comparison
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Volume (kmt)
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209.4
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190.5
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9.9%
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Revenue
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168.9m
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222.2m
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(24.0)%
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Gross Profit
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39.8m
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44.0m
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(9.5)%
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Gross Profit/metric ton
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190.0
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230.9
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(17.7)%
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Adjusted EBITDA
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22.4m
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28.3m
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(20.6)%
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Adjusted EBITDA/metric ton
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107.2
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148.3
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(27.7)%
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Adjusted EBITDA Margin (%)
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13.3
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12.7
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60bps
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Volumes of the Rubber Carbon Black business increased by 9.9%,
reflecting increased demand in Europe and North America, as well as the
inclusion of 11.4 kmt of volumes from OECQ. Revenue decreased by €53.3
million, primarily due to price declines resulting from contracts that
pass through lower costs of feedstock. This was partly offset by foreign
exchange translation effects primarily from a stronger US Dollar. The
impact on revenues of the additional volumes was partially offset by
regional mix effects.
Gross profit of the business decreased 9.5% to €39.8 million with the
drop associated with negative feedstock cost developments, partially
offset by favorable foreign exchange translation effects. Additionally,
depreciation increased by €0.9 million despite asset review in early
2015 which has been offset with foreign exchange effects and additional
depreciation from capital investment.
Adjusted EBITDA of the business decreased 20.6% to €22.4 million,
reflecting the decline in Gross Profit, as well as the impact of
unfavorable foreign exchange effects associated with selling, R&D, and
general & administrative expenses.
Balance Sheet and Cash Flow
As of December 31, 2015, the Company had cash and cash equivalents of
€65.3 million, which represent a decrease of €40.6 million from
September 30, 2015 reflecting the voluntary repayment of €50.0 million
of long term debt and the payment of €27.9 million (less cash acquired
of €4.7 million) for the 100% interest in OECQ. In addition to these
payments, the Company also paid its regular 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 2016,
the Company made a further €20.0 million voluntary debt repayment. As a
result, the Company has now reduced its debt by €70 million of voluntary
debt repayments (or approximately 10% of total debt) consistent with the
Company’s announced intention to do so on December 14, 2015.
As previously announced on December 14, 2015, the Company has instituted
an open market repurchase program for $20 million of its stock. Under
the Program, the Company may, but is not obligated to, repurchase its
outstanding common stock in the open market from time to time. The
program does not require the Company to repurchase any specific number
of shares. The program may be suspended, extended, modified or
discontinued at any time.
The Company’s non-current indebtedness as of December 31, 2015 was
€650.8 million composed of the non-current portion of term loan
liabilities (€661.7 million less transaction costs of €11.1 million) and
€0.2 million other long term debt. Net indebtedness including €7.3
million current portion of term loan liabilities was €603.7 million,
which represents a 2.89 times LTM EBITDA multiple.
Cash inflows from operating activities in the fourth quarter of 2015
amounted to €62.3 million, consisting of a consolidated profit for the
period of €1.5 million, adjusted for depreciation and amortization of
€20.8 million and the exclusion of finance cost of €15.0 million
affecting net income. Net working capital totaled €183.0 million as of
December 31, 2015, compared to €188.8 million as of September 30, 2015.
Days of Net Working Capital ended 2015 at 64 days, unchanged compared to
September 30, 2015 reflecting continued effective working capital
management.
Cash outflows from investing activities in the fourth quarter of 2015
amounted to €10.7 million composed of expenditures for improvements
primarily in the manufacturing network throughout the production system
and the acquisition of OECQ. Cash outflows for financing activities in
the fourth quarter of 2015 amounted to €69.7 million, consisting
primarily of the voluntary debt repayment, the quarterly dividend, and
the regular interest payment and debt repayment.
2016 Outlook
“Even in the face of growing economic uncertainty and major energy price
dislocations that occurred in 2015, we generated steady volume growth
with improved profitability and strong cash flow,” said Jack Clem, Chief
Executive Officer. “These business conditions are not expected to change
meaningfully in 2016 and neither will our game plan. We will look to
grow our Specialty Carbon Black business through product innovation,
customer and market expansion and capacity improvements to meet the
growing demand for our products. We will continue working closely with
our customers to develop and expand more new uses and applications for
our products as demonstrated over the last several years. In our Rubber
Carbon Black business, we will manage our business with the major tire
customers with a view to stabilize profitability and cash flow over time
by addressing the imbalance that has arisen between feedstock costs and
product pricing and by increasing our mix of specialty rubber products
including MRG product lines by shifting our production capacity, as
warranted, to these products. Overall, we will continue taking steps
designed to improve our yields, optimize our feedstock costs and
streamline our production network to deal with unprofitable production
lanes. Lastly, as was the case throughout 2015, to the extent feedstock
cost issues may negatively impact our Rubber Carbon Black business in
2016, we believe we are well positioned to mitigate this impact through
correspondingly stronger profits in our Specialty Carbon Black business.
As a result, we are confident in the power of our business model to
generate excess cash flow to fund on-going capex needs and productivity
enhancement projects, cover our dividend and continue to de-lever our
balance sheet.”
Consistent with this outlook and these objectives, the company expects
full year Adjusted EBITDA to be in the range of €205 million and €225
million for 2016. This outlook for 2016 is based on the assumptions that
volume growth will be in line with current GDP expectations and that oil
prices and exchange rates will be at average levels seen during Q4 2015,
with negative feedstock impacts remaining at levels experienced at the
end of 2015.
Other guidance metrics for 2016 include shares outstanding of 59.6
million before giving effect to any share buybacks, an underlying tax
rate of about 35% on pre-tax income, capital expenditures of
approximately €55 - 60 million, depreciation of about €60 million, and
amortization of about €20 million (including amortization of acquired
intangibles of about €13 million). This outlook does not give effect to
any contingencies described in Note 10.5 to our consolidated financial
statements as at December 31, 2015. Lastly, the Company will be shortly
filing a F-3 universal shelf with the SEC as a matter of good corporate
housekeeping.
Conference Call
As previously announced, Orion will hold a conference call tomorrow,
Friday, March 4th 2016, 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 11, 2016:
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U.S. Toll Free:
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1-877-870-5176
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International:
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1-858-384-5517
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Conference ID:
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13628362
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Additionally, a live and 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. The Company offers
standard and high-performance products for coatings, printing inks,
polymers, rubber and other applications. Our high-quality Gas Blacks,
Furnace Blacks and Specialty Carbon Blacks tint, colorize and enhance
the performance of plastics, paints and coatings, inks and toners,
adhesives and sealants, tires, and manufactured rubber goods such as
automotive belts and hoses. With approximately 1,525 employees
worldwide, Orion runs 15 global production sites and four Applied
Technology Centers. For more information please visit our website
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 “2016 Full Year Outlook” section 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, 2015.
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 the “2016
Full Year Outlook” section above - as a result of new information,
future events or other information, other than as required by applicable
law.
Non-IFRS Financial Measures Reconciliations
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 our underlying business
performance. 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 and our other IFRS financial results.
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 since we see these measures as indicating the
portion of revenue that is not consumed by variable costs (raw
materials, packaging, utilities and distribution 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:
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Reconciliation of profit or (loss)
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In EUR k
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In EUR k
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Q4-2015
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Q4-2014
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FY 2015
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FY 2014
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Adjusted EBITDA
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50,848
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48,460
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208,710
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207,661
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Share of profit of joint venture
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(121
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)
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(175
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)
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(492
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)
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(520
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)
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Restructuring expenses (1)
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-
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(1,075
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)
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-
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(4,082
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)
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Consulting fees related to Group strategy (2)
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(1,320
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)
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(746
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)
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(1,502
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)
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(4,610
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)
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Expenses related to capitalized emission rights (3)
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-
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-
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-
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-
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Long Term Incentive Plan
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(496
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)
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-
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(907
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)
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-
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Other non-operating (4)
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(5,081
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)
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(4,904
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)
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(10,638
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)
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(17,048
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)
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EBITDA
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43,830
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41,560
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195,171
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181,401
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Depreciation, amortization and impairment of intangible assets and
property,
plant and equipment
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(20,733
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)
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(20,010
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)
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(72,778
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)
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(77,083
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)
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Earnings before taxes and finance income/costs (operating result
(EBIT))
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23,097
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21,550
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122,393
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104,318
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Other finance income
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(3,759
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)
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11,751
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17,275
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39,342
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Share of profit of joint ventures
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|
121
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|
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175
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|
|
492
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|
|
520
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Finance costs
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(11,253
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)
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(35,173
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)
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(73,448
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)
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(182,695
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)
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Income taxes
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|
(6,718
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)
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(6,612
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)
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(23,838
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)
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(17,424
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)
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|
Profit or (loss) for the period
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|
1,488
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(8,309
|
)
|
|
42,874
|
|
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(55,939
|
)
|
|
|
|
|
|
|
|
|
|
|
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(1) Restructuring expenses primarily include personnel-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) Expenses related to capitalized emission rights result from the
consumption and revaluation of emission rights that were capitalized as
part of the acquisition of the Evonik Carbon Black business in 2011.
(4) Other non-operating in the period ended December 31, 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 implementation costs, EUR
1.8 million bad debt allowance on post acquisition sales related to an
OECQ customer and EUR 1.5 million reassessed real estate transfer tax
related to the 2011 acquisition. Other non-operating in 2014 include EUR
10.7 million IPO related costs as well as an impairment of inventories
totaling EUR 3.9 million resulting in part from a cancellation of a
particular customer's contract.
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
Q4-2015
|
|
Q4-2014
|
|
FY 2015
|
|
FY 2014
|
|
Net Income in EUR k
|
|
1,488
|
|
|
(8,310
|
)
|
|
42,874
|
|
|
(55,939
|
)
|
|
add back NRIs
|
|
6,896
|
|
|
6,725
|
|
|
13,046
|
|
|
25,740
|
|
|
add back LTIP
|
|
496
|
|
|
-
|
|
|
907
|
|
|
-
|
|
|
add back amortization
|
|
3,271
|
|
|
3,254
|
|
|
13,077
|
|
|
14,158
|
|
|
add back one-time refinancing impacts
|
|
-
|
|
|
-
|
|
|
-
|
|
|
54,400
|
|
|
add back foreign exchange rate impacts
|
|
2,475
|
|
|
10,289
|
|
|
11,743
|
|
|
13,685
|
|
|
Amortization of Transaction Costs
|
|
826
|
|
|
843
|
|
|
3,304
|
|
|
3,373
|
|
|
Release Transaction cost due to redemption
|
|
1,500
|
|
|
|
|
1,500
|
|
|
|
|
Tax effect on add back items at 35% estimated tax rate
|
|
(5,300
|
)
|
|
(7,400
|
)
|
|
(15,150
|
)
|
|
(39,000
|
)
|
|
Adjusted Net Income in EUR k
|
|
11,652
|
|
|
5,401
|
|
|
71,301
|
|
|
16,417
|
|
|
Adjusted EPS in EUR
|
|
0.2
|
|
|
0.09
|
|
|
1.20
|
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
Total add back items in EUR k
|
|
10,332
|
|
|
13,723
|
|
|
28,605
|
|
|
72,326
|
|
|
Impact add back items per share in EUR
|
|
0.17
|
|
|
0.23
|
|
|
0.48
|
|
|
1.43
|
|
|
+ Earnings per Share (EUR per Share), basic in EUR
|
|
0.02
|
|
|
(0.14
|
)
|
|
0.72
|
|
|
(1.11
|
)
|
|
Adjusted EPS in EUR
|
|
0.20
|
|
|
0.09
|
|
|
1.20
|
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income statements of Orion Engineered Carbons S.A.
for
the years ended December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In EUR k
|
|
In EUR k
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
1,111,776
|
|
|
1,318,399
|
|
|
Cost of sales
|
|
|
|
(791,467
|
)
|
|
(1,017,342
|
)
|
|
Gross profit
|
|
|
|
320,309
|
|
|
301,057
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
|
(108,100
|
)
|
|
(99,642
|
)
|
|
Research and development costs
|
|
|
|
(13,404
|
)
|
|
(12,953
|
)
|
|
General and administrative expenses
|
|
|
|
(62,107
|
)
|
|
(54,602
|
)
|
|
Other operating income
|
|
|
|
7,456
|
|
|
4,452
|
|
|
Other operating expenses
|
|
|
|
(21,761
|
)
|
|
(33,994
|
)
|
|
Operating result (EBIT)
|
|
|
|
122,393
|
|
|
104,318
|
|
|
Finance income
|
|
|
|
17,275
|
|
|
39,342
|
|
|
Finance costs
|
|
|
|
(73,448
|
)
|
|
(182,695
|
)
|
|
Share of profit or loss of joint ventures
|
|
|
|
492
|
|
|
520
|
|
|
Financial result
|
|
|
|
(55,681
|
)
|
|
(142,833
|
)
|
|
Profit or (loss) before income taxes
|
|
|
|
66,712
|
|
|
(38,515
|
)
|
|
Income taxes
|
|
|
|
(23,838
|
)
|
|
(17,424
|
)
|
|
Profit or (loss) for the period
|
|
|
|
42,874
|
|
|
(55,939
|
)
|
|
|
|
|
|
|
|
|
|
Earnings per share (EUR per share), basic
|
|
|
|
0.72
|
|
|
(1.11
|
)
|
|
Weighted average shares, basic (in thousand of shares)
|
|
|
|
59,635
|
|
|
50,471
|
|
|
Earnings per share (EUR per share), diluted
|
|
|
|
0.72
|
|
|
(1.11
|
)
|
|
Weighted average shares, diluted (in thousand of shares)
|
|
|
|
59,830
|
|
|
50,471
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income statements of Orion Engineered Carbons S.A.
for
the three months ended December 31, 2015 and 2014
|
|
|
|
|
|
|
Quarter IV
|
|
|
|
2015
|
|
2014
|
|
Revenue
|
|
260,365
|
|
|
316,835
|
|
|
Cost of sales
|
|
(181,928
|
)
|
|
(243,762
|
)
|
|
Gross profit
|
|
78,437
|
|
|
73,073
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
(27,473
|
)
|
|
(25,457
|
)
|
|
Research and development costs
|
|
(2,879
|
)
|
|
(3,615
|
)
|
|
General and administrative costs
|
|
(16,816
|
)
|
|
(14,696
|
)
|
|
Other operating income
|
|
2,469
|
|
|
1,531
|
|
|
Other operating expenses
|
|
(10,641
|
)
|
|
(9,287
|
)
|
|
other operating income and expenses, net
|
|
(8,172
|
)
|
|
(7,756
|
)
|
|
Operating result (EBIT)
|
|
23,097
|
|
|
21,550
|
|
|
Finance result, net
|
|
(15,012
|
)
|
|
(23,422
|
)
|
|
Share of profit of Joint Ventures
|
|
121
|
|
|
175
|
|
|
Financial result
|
|
(14,891
|
)
|
|
(23,247
|
)
|
|
Profit before taxes
|
|
8,206
|
|
|
(1,697
|
)
|
|
Income taxes
|
|
(6,718
|
)
|
|
(6,612
|
)
|
|
Profit/loss for the period
|
|
1,488
|
|
|
(8,309
|
)
|
|
EPS
|
|
0.02
|
|
|
(0.14
|
)
|
|
Number of Shares
|
|
59,635,126
|
|
|
59,635,126
|
|
|
|
|
|
|
|
|
|
Consolidated statements of financial position of Orion Engineered
Carbons S.A.
as at December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
|
A S S E T S
|
|
|
|
|
|
|
|
|
|
|
|
In EUR k
|
|
In EUR k
|
|
Non-current assets
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
48,512
|
|
|
48,512
|
|
|
Other intangible assets
|
|
|
|
94,803
|
|
|
110,952
|
|
|
Property, plant and equipment
|
|
|
|
385,856
|
|
|
358,216
|
|
|
Investment in joint ventures
|
|
|
|
4,657
|
|
|
4,657
|
|
|
Other financial assets
|
|
|
|
3,049
|
|
|
5,931
|
|
|
Other assets
|
|
|
|
3,698
|
|
|
3,750
|
|
|
Deferred tax assets
|
|
|
|
55,254
|
|
|
57,084
|
|
|
|
|
|
|
595,829
|
|
|
589,102
|
|
|
Current assets
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
105,111
|
|
|
125,298
|
|
|
Trade receivables
|
|
|
|
172,123
|
|
|
199,486
|
|
|
Other financial assets
|
|
|
|
3,126
|
|
|
1,001
|
|
|
Other assets
|
|
|
|
20,321
|
|
|
26,166
|
|
|
Income tax receivables
|
|
|
|
8,750
|
|
|
10,575
|
|
|
Cash and cash equivalents
|
|
|
|
65,261
|
|
|
70,544
|
|
|
|
|
|
|
374,692
|
|
|
433,070
|
|
|
|
|
|
|
970,521
|
|
|
1,022,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
|
E Q U I T Y A N D L I A B I L I T I E S
|
|
|
|
|
|
|
|
|
|
In EUR k
|
|
In EUR k
|
|
Equity
|
|
|
|
|
|
|
|
Subscribed capital
|
|
|
|
59,635
|
|
|
59,635
|
|
|
Reserves
|
|
|
|
(52,823
|
)
|
|
51,569
|
|
|
Profit or (loss) for the period
|
|
|
|
42,874
|
|
|
(55,939
|
)
|
|
|
|
|
|
49,686
|
|
|
55,265
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
Pension provisions
|
|
|
|
44,994
|
|
|
48,629
|
|
|
Other provisions
|
|
|
|
15,456
|
|
|
14,169
|
|
|
Financial liabilities
|
|
|
|
650,782
|
|
|
670,189
|
|
|
Other liabilities
|
|
|
|
138
|
|
|
2,101
|
|
|
Deferred tax liabilities
|
|
|
|
40,052
|
|
|
44,281
|
|
|
|
|
|
|
751,422
|
|
|
779,369
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Other provisions
|
|
|
|
38,057
|
|
|
40,808
|
|
|
Trade payables
|
|
|
|
94,213
|
|
|
105,074
|
|
|
Other financial liabilities
|
|
|
|
4,750
|
|
|
10,684
|
|
|
Income tax liabilities
|
|
|
|
16,443
|
|
|
11,552
|
|
|
Other liabilities
|
|
|
|
15,950
|
|
|
19,420
|
|
|
|
|
|
|
169,413
|
|
|
187,538
|
|
|
|
|
|
|
970,521
|
|
|
1,022,172
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of cash flows of Orion Engineered Carbons S.A.
for
the years ended December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
In EUR k
|
|
In EUR k
|
|
|
|
|
|
|
|
|
Profit or (loss) for the period
|
|
|
42,874
|
|
|
(55,939
|
)
|
|
Income taxes
|
|
|
23,838
|
|
|
17,424
|
|
|
Profit or (loss) before income taxes
|
|
|
66,712
|
|
|
(38,515
|
)
|
|
Depreciation and amortization of intangible assets and property,
plant and
equipment
|
|
|
72,778
|
|
|
77,083
|
|
|
Other non-cash expenses/(income)
|
|
|
957
|
|
|
-
|
|
|
Decrease in trade receivables
|
|
|
46,839
|
|
|
9,897
|
|
|
Decrease in inventories
|
|
|
25,777
|
|
|
4,138
|
|
|
Increase/(decrease) in trade payables
|
|
|
(28,425
|
)
|
|
1,524
|
|
|
Increase/(decrease) in provisions
|
|
|
(8,831
|
)
|
|
(6,957
|
)
|
|
Increase/(decrease) in other assets and liabilities that cannot be
allocated to
investing or financing activities
|
|
|
(7,078
|
)
|
|
5,821
|
|
|
Finance income
|
|
|
(17,275
|
)
|
|
(39,341
|
)
|
|
Finance costs
|
|
|
73,448
|
|
|
182,695
|
|
|
Cash paid for income taxes
|
|
|
(10,540
|
)
|
|
(23,928
|
)
|
|
Cash flows from operating activities
|
|
|
214,362
|
|
|
172,417
|
|
|
Cash paid for the acquisition of intangible assets and property,
plant and equipment
|
|
|
(51,541
|
)
|
|
(64,454
|
)
|
|
Cash paid to acquire entities less cash acquired
|
|
|
(23,240
|
)
|
|
-
|
|
|
Cash flows from investing activities
|
|
|
(74,781
|
)
|
|
(64,454
|
)
|
|
Cash received from borrowings, net of transaction costs
|
|
|
-
|
|
|
645,724
|
|
|
Cash repayments of non-current financial liabilities
|
|
|
(56,825
|
)
|
|
(621,961
|
)
|
|
Repayments of borrowings
|
|
|
(5,680
|
)
|
|
(2,311
|
)
|
|
Interest and similar expenses paid
|
|
|
(41,894
|
)
|
|
(121,138
|
)
|
|
Interest and similar income received
|
|
|
862
|
|
|
29,693
|
|
|
Dividends paid to shareholders
|
|
|
(40,000
|
)
|
|
(40,000
|
)
|
|
Cash flows from financing activities
|
|
|
(143,537
|
)
|
|
(109,993
|
)
|
|
|
|
|
|
|
|
|
Change in cash
|
|
|
(3,956
|
)
|
|
(2,030
|
)
|
|
Change in cash resulting from exchange rate differences
|
|
|
(1,327
|
)
|
|
2,096
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
70,544
|
|
|
70,478
|
|
|
Cash and cash equivalents at the end of the period
|
|
|
65,261
|
|
|
70,544
|
|
|
|
|
|
|
|
|
|
|
