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Cabot Corp achieves strong sales and earnings growth in 3Q fiscal 2018
FINANCIALS
currency translation effects this year. Nabaltec reports that its spending on investments increased in 1H 2018 relative to the same period of last year, from €12.3 million to €13.5 million, as a result of the expansion of its US operations [ADPO, August & April 2018]. Nabaltec has two product segments, Functional Fillers and Specialty Alumina. The former produces halogenfree flame retardant fillers, functional additives and boehmites for the plastics industry and others, while the latter serves the technical ceramics and refractories sector. The Functional Fillers product segment generated revenues of €30.7 million in the second quarter of 2018, which was level with the previous year. For 1H 2018, the segment’s revenues were €60 million, up slightly (+0.5%) compared to revenues of €59.7 million a year earlier. EBITDA for the Functional Fillers segment amounted to €10.0 million this year, compared to EBITDA of €11.5 million in 1H 2017. Commenting on the results, Nabaltec’s CEO Johannes Heckmann notes that demand from customers continues to be strong and that market drivers remain intact. The company was also able to shift its product mix in the first half of 2018 towards higher-margin and more-refined products, he says. The commissioning of the production line at Nashtec started in August, and the company will be ‘gradually ramping up production volume and resuming direct supply’ to customers in the USA, Heckmann reports. The facility’s full capacity of 30 000 tonnes/year should be available in 2019, Nabaltec says. Production of the company’s aluminium hydroxide flame retardants was suspended at the Texasbased operation in August 2016 due to raw material supply issues [ibid., October 2016]. Nashtec was at that time a joint venture but has since become a fully-owned subsidiary of Nabaltec, and has undergone a major expansion programme. In the interim period, US customers have been supplied from the company’s manufacturing site in Schwandorf, Germany, which has been running to the limit of its production capacity, Nabaltec reveals. ‘Despite the considerable burden posed by Nashtec, we were able to post double-digit EBIT margin growth in the second quarter of 2018 thanks to strong boehmite revenues and a stronger US dollar’, reports Günther Spitzer, CFO of Nabaltec. The company expects Nashtec’s resumption of operations to continue to weigh down earnings in the second half of 2018, and has therefore retained its previous forecast for 2018 as a whole, he com-
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ments. The company expects an EBIT margin in the high single digits and revenue growth in the mid-single digits for the current financial year. More information: www.nabaltec.de
Cabot Corp achieves strong sales and earnings growth in 3Q fiscal 2018
F
or the third quarter of its 2018 fiscal year, which ended 30 June 2018, Cabot Corp posted net income attributable to the company of US$88 million on net sales of $854 million. These figures represent substantial bottom and top line improvements of 87% and 21%, respectively, compared to 3Q fiscal 2017 when the company reported net income of $47 million and net sales of $705 million. Diluted earnings per share (EPS) improved from $0.73 in 3Q 2017 to $1.40 this year. Cabot’s Reinforcement Materials segment generated sales of $466 million in the third quarter of fiscal 2018, an increase of 27% from sales of $367 million the previous year. The segment’s EBIT improved by 45% or $23 million from $51 million last year to $74 million in 3Q fiscal 2018. The company says that the growth in EBIT was driven by strong commercial execution that delivered volume growth globally and higher unit margins particularly in Asia. Improved pricing and product mix also contributed to the gains. Reinforcement Materials’ global volumes increased by 6% year on year, with above-market growth in all regions, Cabot reports. Volume growth was strongest in Asia at 8%, with 5% growth in the Americas and 3% growth in the Europe, Middle East and Africa region. In the Performance Chemicals segment, 3Q 2018 sales of $274 million were up 20% compared to sales of $229 million the previous year. Specialty Carbons and Formulations business contributed $195 million to the sales total. EBIT increased by 22% or $10 million year over year, from $46 million to $56 million in 3Q fiscal 2018, driven by both robust sales volumes and pricing gains in Specialty Carbons and Formulations, according to the company. Volumes increased by 17% year over year in the Specialty Carbons and
October 2018
FINANCIALS
Formulations business but decreased 2% in the Metal Oxides business. The strong growth in Specialty Carbons & Formulations was driven by above market growth in all product lines, Cabot reports. During the quarter the company announced 300 000 tonnes of capacity additions throughout its carbon black network [ADPO, July 2018]. For the fourth quarter of the fiscal year, Cabot anticipates that Reinforcement Materials will continue its robust performance supported by the company’s leadership position and strong operational and commercial execution, says president and CEO Sean Keohane. In Performance Chemicals, the company expects to maintain margins and continued strong volumes in Specialty Carbons and Formulations. In related news, Cabot increased global prices for its speciality carbon products by up to 10%, effective from 1 September 2018 or as existing contracts permit. According to the company, this price increase is required due to escalating costs associated with logistics, raw materials, environmental compliance and capital improvements. More information: www.cabotcorp.com
Orion delivers strong results in second quarter of 2018; appoints new CEO
C
arbon black specialist Orion Engineered Carbons generated sales revenues of US$391.6 million in the second quarter of 2018, up $62.0 million or 18.8% compared to $329.6 million in 2Q 2017. Volumes increased by 3.4% year on year to 275 600 tonnes in the 2018 second quarter, with increases of 3.9% and 3.2%, respectively, in its speciality and rubber carbon blacks businesses driven by stronger demand in North America and Europe.
October 2018
Net income for the second quarter of 2018 was $52.7 million, up markedly from net income of $18.4 million in 2Q 2017, while the company’s adjusted EBITDA increased by 26.1% to reach a record quarterly high of $81.1 million. In the Specialty Carbon Black segment, the sales volume of 67 800 tonnes was the second highest on record, and up 3.9% compared to 2Q 2017, reflecting growth in the USA, South Korea and China. The segment posted revenues of $142.7 million, an increase of 16.6% compared to the previous year. Rising feedstock costs were successfully offset by price increases, with the increased volumes and positive currency exchange effects also contributing to the gains, Orion comments. Adjusted EBITDA increased by 17.8% to $45.2 million. The Rubber Carbon Black segment experienced strong industry demand in 2Q 2018, contributing to an increase in sales volume of 3.2% to 207 800 tonnes in the threemonth period. Plant operating rates remained high throughout the quarter as a result. Revenues increased by 20.1% to $248.9 million from $207.3 million in 2Q 2017, primarily due to positive contributions from pricing, exchange rate translation, product mix and sales volume. The segment’s adjusted EBITDA increased by 38.4% to $35.9 million in 2Q 2018. Orion reports that it successfully completed the full realignment of its South Korean production footprint during the second quarter, with the consolidation of all production at its expanded Yeosu facility [ADPO, February 2018] and the sale of the Bupyeong plant near Seoul. In other news, Orion’s CEO Jack Clem has announced his retirement after seven years at the company’s helm. He will be nominated to join the board of directors and will act as an advisor to the company during a transition period. Orion has appointed Corning F. Painter to replace him as CEO. He will also be nominated to join the company’s board. Painter is a seasoned senior executive who previously ran Air Products’ $8 billion industrial gas business. More information: www.orioncarbons.com
Additives for Polymers
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currency translation effects this year. Nabaltec reports that its spending on investments increased in 1H 2018 relative to the same period of last year, from €12.3 million to €13.5 million, as a result of the expansion of its US operations [ADPO, August & April 2018]. Nabaltec has two product segments, Functional Fillers and Specialty Alumina. The former produces halogenfree flame retardant fillers, functional additives and boehmites for the plastics industry and others, while the latter serves the technical ceramics and refractories sector. The Functional Fillers product segment generated revenues of €30.7 million in the second quarter of 2018, which was level with the previous year. For 1H 2018, the segment’s revenues were €60 million, up slightly (+0.5%) compared to revenues of €59.7 million a year earlier. EBITDA for the Functional Fillers segment amounted to €10.0 million this year, compared to EBITDA of €11.5 million in 1H 2017. Commenting on the results, Nabaltec’s CEO Johannes Heckmann notes that demand from customers continues to be strong and that market drivers remain intact. The company was also able to shift its product mix in the first half of 2018 towards higher-margin and more-refined products, he says. The commissioning of the production line at Nashtec started in August, and the company will be ‘gradually ramping up production volume and resuming direct supply’ to customers in the USA, Heckmann reports. The facility’s full capacity of 30 000 tonnes/year should be available in 2019, Nabaltec says. Production of the company’s aluminium hydroxide flame retardants was suspended at the Texasbased operation in August 2016 due to raw material supply issues [ibid., October 2016]. Nashtec was at that time a joint venture but has since become a fully-owned subsidiary of Nabaltec, and has undergone a major expansion programme. In the interim period, US customers have been supplied from the company’s manufacturing site in Schwandorf, Germany, which has been running to the limit of its production capacity, Nabaltec reveals. ‘Despite the considerable burden posed by Nashtec, we were able to post double-digit EBIT margin growth in the second quarter of 2018 thanks to strong boehmite revenues and a stronger US dollar’, reports Günther Spitzer, CFO of Nabaltec. The company expects Nashtec’s resumption of operations to continue to weigh down earnings in the second half of 2018, and has therefore retained its previous forecast for 2018 as a whole, he com-
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Additives for Polymers
ments. The company expects an EBIT margin in the high single digits and revenue growth in the mid-single digits for the current financial year. More information: www.nabaltec.de
Cabot Corp achieves strong sales and earnings growth in 3Q fiscal 2018
F
or the third quarter of its 2018 fiscal year, which ended 30 June 2018, Cabot Corp posted net income attributable to the company of US$88 million on net sales of $854 million. These figures represent substantial bottom and top line improvements of 87% and 21%, respectively, compared to 3Q fiscal 2017 when the company reported net income of $47 million and net sales of $705 million. Diluted earnings per share (EPS) improved from $0.73 in 3Q 2017 to $1.40 this year. Cabot’s Reinforcement Materials segment generated sales of $466 million in the third quarter of fiscal 2018, an increase of 27% from sales of $367 million the previous year. The segment’s EBIT improved by 45% or $23 million from $51 million last year to $74 million in 3Q fiscal 2018. The company says that the growth in EBIT was driven by strong commercial execution that delivered volume growth globally and higher unit margins particularly in Asia. Improved pricing and product mix also contributed to the gains. Reinforcement Materials’ global volumes increased by 6% year on year, with above-market growth in all regions, Cabot reports. Volume growth was strongest in Asia at 8%, with 5% growth in the Americas and 3% growth in the Europe, Middle East and Africa region. In the Performance Chemicals segment, 3Q 2018 sales of $274 million were up 20% compared to sales of $229 million the previous year. Specialty Carbons and Formulations business contributed $195 million to the sales total. EBIT increased by 22% or $10 million year over year, from $46 million to $56 million in 3Q fiscal 2018, driven by both robust sales volumes and pricing gains in Specialty Carbons and Formulations, according to the company. Volumes increased by 17% year over year in the Specialty Carbons and
October 2018
FINANCIALS
Formulations business but decreased 2% in the Metal Oxides business. The strong growth in Specialty Carbons & Formulations was driven by above market growth in all product lines, Cabot reports. During the quarter the company announced 300 000 tonnes of capacity additions throughout its carbon black network [ADPO, July 2018]. For the fourth quarter of the fiscal year, Cabot anticipates that Reinforcement Materials will continue its robust performance supported by the company’s leadership position and strong operational and commercial execution, says president and CEO Sean Keohane. In Performance Chemicals, the company expects to maintain margins and continued strong volumes in Specialty Carbons and Formulations. In related news, Cabot increased global prices for its speciality carbon products by up to 10%, effective from 1 September 2018 or as existing contracts permit. According to the company, this price increase is required due to escalating costs associated with logistics, raw materials, environmental compliance and capital improvements. More information: www.cabotcorp.com
Orion delivers strong results in second quarter of 2018; appoints new CEO
C
arbon black specialist Orion Engineered Carbons generated sales revenues of US$391.6 million in the second quarter of 2018, up $62.0 million or 18.8% compared to $329.6 million in 2Q 2017. Volumes increased by 3.4% year on year to 275 600 tonnes in the 2018 second quarter, with increases of 3.9% and 3.2%, respectively, in its speciality and rubber carbon blacks businesses driven by stronger demand in North America and Europe.
October 2018
Net income for the second quarter of 2018 was $52.7 million, up markedly from net income of $18.4 million in 2Q 2017, while the company’s adjusted EBITDA increased by 26.1% to reach a record quarterly high of $81.1 million. In the Specialty Carbon Black segment, the sales volume of 67 800 tonnes was the second highest on record, and up 3.9% compared to 2Q 2017, reflecting growth in the USA, South Korea and China. The segment posted revenues of $142.7 million, an increase of 16.6% compared to the previous year. Rising feedstock costs were successfully offset by price increases, with the increased volumes and positive currency exchange effects also contributing to the gains, Orion comments. Adjusted EBITDA increased by 17.8% to $45.2 million. The Rubber Carbon Black segment experienced strong industry demand in 2Q 2018, contributing to an increase in sales volume of 3.2% to 207 800 tonnes in the threemonth period. Plant operating rates remained high throughout the quarter as a result. Revenues increased by 20.1% to $248.9 million from $207.3 million in 2Q 2017, primarily due to positive contributions from pricing, exchange rate translation, product mix and sales volume. The segment’s adjusted EBITDA increased by 38.4% to $35.9 million in 2Q 2018. Orion reports that it successfully completed the full realignment of its South Korean production footprint during the second quarter, with the consolidation of all production at its expanded Yeosu facility [ADPO, February 2018] and the sale of the Bupyeong plant near Seoul. In other news, Orion’s CEO Jack Clem has announced his retirement after seven years at the company’s helm. He will be nominated to join the board of directors and will act as an advisor to the company during a transition period. Orion has appointed Corning F. Painter to replace him as CEO. He will also be nominated to join the company’s board. Painter is a seasoned senior executive who previously ran Air Products’ $8 billion industrial gas business. More information: www.orioncarbons.com
Additives for Polymers
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