BUSINESS WIRE<\/a>)–
\nOrion S.A. (NYSE: OEC), a global specialty chemicals company, today announced a preliminary unaudited financial update for its fiscal year ending December 31, 2024.<\/p>\n\nOrion now expects 2024 adjusted EBITDA to be nominally below our guidance range of $305-$315 million, due primarily to foreign exchange translation impacts related to the strengthening dollar and one-time costs associated with a cost reduction plan. Weaker than anticipated Rubber segment volumes late in the fourth quarter and slightly less favorable Specialty segment mix were also factors and would have positioned the company at the lower end of guidance, excluding the items noted above. In the fourth quarter, Orion commenced an initiative to reduce its non-plant workforce by ~6% and expects to realize approximately $6 million in annualized cost savings in 2025.<\/p>\n
\n\u201cWe believe the Rubber demand softness we experienced late in the year reflects continued pressure on Western tire production resulting from elevated levels of tire imports into North America and Europe, respectively, from Southeast Asia and China, as well as some year-end inventory adjustments at certain key customers,\u201d said Corning Painter, Orion\u2019s Chief Executive Officer.<\/p>\n
\n\u201cDespite stepped-up tire imports into our key geographic markets, we believe the outcome of our Rubber segment\u2019s commercial strategy positions us well for 2025, and for when trade flows rebalance within the global tire market.\u201d<\/p>\n
\nPainter added, \u201cRegardless, we initiated discrete cost reduction actions in the fourth quarter of 2024, which we expect to substantially complete in the first quarter of 2025. Overall, based on factors within Orion\u2019s control and despite the strengthening FX headwind, we continue to expect modest growth in 2025, building upon the structurally improved returns our company has generated over the past several years.\u201d<\/p>\n
\nThese expected financial results are preliminary and unaudited, have not been reviewed by the Company\u2019s independent registered public accountants, and remain subject to the completion of normal year-end accounting procedures and adjustments, and are therefore subject to change.<\/p>\n
Release Date and Conference Call<\/b><\/p>\n
\nOrion intends to report fourth quarter and full year 2024 results after the market\u2019s close on Wednesday, February 19, 2025, to be followed by a conference call on Thursday, February 20, 2025, at 8:30 a.m. (ET).<\/p>\n
\nThe dial-in details for the live conference call follow:<\/p>\n