"Orion Company's sales of carbon black for rubber have declined, but profits have increased. We look forward to continued profit growth in the future."

　　According to the European Rubber Journal, Orion's rubber carbon black sales declined in the first nine months of 2023, in part due to a weak truck tire market and the recent strike by U.S. auto industry workers. The operating performance report released by the carbon black manufacturer pointed out that sales of carbon black for rubber in the third quarter of this year fell by 3% year-on-year to 185,300 tons. Net sales in the third quarter fell 15.4% year-on-year to US$316 million (approximately 297 million euros), mainly affected by the "pass-through effect" caused by lower oil prices and reduced sales.

　　The Houston-based supplier believes contract price increases partially offset the impact of these headwinds. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 3.6% to $51.2 million in the quarter; this was mainly due to improved contract pricing, which was partially offset by lower sales volume and "inadequate combined heat and power profitability" offset. Orion believes that the weak demand for its carbon black is related to the weak replacement tire market in the passenger car and heavy truck sectors. At the same time, production shutdowns caused by strikes in the U.S. automobile industry have also affected the market demand for original equipment tires for passenger cars.

　　In the first nine months of 2023, Orion's rubber carbon black sales fell 5.4% year-on-year to 539,500 tons, and sales fell 7.3% to $964 million. Adjusted EBITDA profit increased nearly 35% to $172 million, primarily as a result of higher contract pricing, partially offset by lower sales volume and a lack of combined heat and power profitability.

　　Looking ahead, Orion CEO Corning Painter said: "Despite sluggish demand, we are confident of achieving a third consecutive year of profitable growth." In terms of tire demand, Painter forecasts that North American and European tire production capacity The increase in demand and the trend of "emphasis on localized supply" should help drive the growth of carbon black demand. He added: "The contract negotiations for our rubber business users in EMEA and the Americas in 2024 are expected to be completed in the next month or so." Pei Kangning said that after the exhaust emission control system of the last factory in the United States was put into use, Orion The focus of capital expenditures will now be on "profit growth, reducing debt leverage and returning value to shareholders."