Earnings call transcript Q1 2023

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Operator

Welcome to the Orion Engineered Carbons' First Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce her host, Wendy Wilson, Head of Investor Relations. ma'am. you, Thank

begin. You may

Wendy Wilson

Relations. after and posted release operator. a Engineered portion Good quarter welcome you, to Investor of market Executive slide our Officer Officer. of issued everyone financial Painter, And Relations are Glajch. presentation morning, conference call Orion Jeff Investor Head Chief Carbons closed Wilson, first our Financial I'm yesterday. to me Chief to today results. Corning Thank Wendy and With We press discuss the XXXX also website. we the our

referencing We presentation will be this during the call.

company's like the remind the with made to statement. call. our and I'd during begin, we may the the are statements of These that risks comments and Before from SEC, today's forward-looking filings call those results to described the actual you uncertainties subject some differ as are on in described

based not revised company forward-looking update any In X. May addition, made statement The new today all as obligated to of on statement circumstances is are forward-looking expectations. or

All attached measures comparable the the in to GAAP release. measures call most table this non-GAAP are discussed our directly press financial to reconciled during

I'll the now Painter. call over to turn Corning

Corning Painter

Wendy. And conference We're for earnings with coupled to specialty everyone. to our stronger results. call. rubber start delivered Good the the a you, great the having line bottom morning, off year, higher welcome to Thank pricing sequentially much

And the position goals. term our our one for higher the been in making manufacturers has motivated the We're economy out reflects progress the track team few that transformed, customer XXXX. short the towards this foundation entry to past Orion a barriers onshoring, on in and investments with the stronger we're significant over believe compared and XXXX to how a long-term hardworking I to of Thanks for we've deglobalization. and with for built trend years. achieving and

outperforming year-over-year of diluted adjusted was a of $X.XX, approximately record $XXX sequentially, XX% adjusted XX% up with delivered with resetting our expectations. rubber EPS and pricing year-on-year EBITDA and XX% first in-line million, these also specialty quarter record, We increase expectations

We quarter, results. have a benefits non-repeating few our helped in the timing and some items which

$XX Our million, same. have million to underlying the been run-rate EBITDA results record would all adjusted which was $XX

cash debt just delivered times. the strong first ratio cutting flow, to net below quarter We operating X.X also

drive throughout We lower expect year. this to will that Jeff discuss the further.

that This plan. has we morning, new repurchase announced the share a board authorized

XXXX. completed to potential to our previously soon complete will share authorization XX% this program up new later this the We midyear month, its to buyback repurchase purchase Combined of outstanding the has a be announced will extend company shares. and authorization, with through

we're course, ratio balanced our approach Of going second opportunities, buyback reducing and debt into supporting leverage to for take between productivity and range the further a authorization. funds allocating growth target

Let me this key quarter. accomplishments highlight for additional two

shipping completed China to facility and sample customers. our is in First, Huaibei Greenfield materials

production be to over sales course year. and expect of We the this ramping

Second, to air online. completed in to black with projects our point, Texas now our knowledge, we're the three producer States emissions the this United only upgrade Borger, at plan carbon control

We we go, half in XXXX. complete second which one to have the to of plant expect more

like X. I'd important introduce Jeff, to Slide to additional over call the turn metric I on Before an

over cost we As air also have substantial and achieved the I'd time, point you to EBITDA. despite you business. significantly in are significant gross profit see, investment. ROCE we of shareholder to our This record can per which to adjusted weighted The of capital. our ability ton levels, is invest exceptional an controls growth in emission like value, of progress profitably of indicator average same exceptional our excess ROCE our period generate that as of we achieved

sustainability This growth as and long-term and stewards of our key it's capital of return on us about just keeps growth, shareholders aligned their not Business metric profitable investment. the the is company. about with

some provide color could Jeff, results. more our that, perhaps financial on you With

Jeff Glajch

of improvements The Thank increase specialty the Slide business. of the and a the Please result far EBITDA in EPS you key $X.XX which $XX metrics that occurred quarter. and and The the price and most improvements outweighed in can of specialty mix see in rubber you, to million, pricing of the increases. in Corning. results On first contractual XX% solid showed are all improvements the X, note adjusted consolidated increase lower volume, quarter first mix. in aforementioned sequential

some smaller I quarter. This regarding items would year. the which the non-repeating that benefited not one timing is changing add, were quarter our is reason and One first thing for results, guidance we are there the impacts why

versus and specialty our On declining volume QX Slide X, was expected in business. last year the is primarily

However, us and achieve gross as helped improvement base both are These in EBITDA. to this rubber, strong from per see profit the mix timing non-repeating gains contractual businesses, price specialty, gains we the continue well adjusted in earlier. I margin in as noted record ton items

despite were well profit On up overall above quarter conditions. trailing the $XXX. QX, decreasing in sequentially, the EBITDA be demand ton up year-on-year. Slide XX held gross XX% X, sequentially to as continues the and and Adjusted increased is strong in at Note XX% but both per looking volumes economic months now the decreased, and while specialty XX% growing,

sequential Finally, metrics we all saw a across gains key basis. on

the compared for shows factors last business EBITDA the specialty with X key Slide year. adjusted affecting

the was earlier, significant. reduction volume As noted

improved However, pricing reduction by and offset mix. that nearly was volume

can to you when this volume try chase in a soft don't You achieve market.

looks a modest note up rubber here, except metrics rubber volume at on it business improvements all important to year-over-year that is all for volume financial in Slide with to were a basis, substantially. the Also metrics decrease. including X

year $XXX from $XXX. good is comparison a up was full ongoing ton, the average believe in XXXX the per of $XXX I quarter. to profit Gross

approximately improvement to in cycle, We of market throughout to return achieve by be emissions the mid-XXXs on requirements XXXX. to air was pricing. control related investments. expect per $XXX should a gain which including You due believe reflects this pricing was XXXX GP ton capital the our driven This our

our that to return those and believe we to investments. market shareholders a achieve We deserve continue on

investments customers. our reliability Higher supports pricing enables plant and

customer progress pricing investments robber the or markets trend with in made continuing rubber there significant customer confident are the as EMEA. and as -- North localization America the supply are sustainable in both have imbalances the we onshoring. regional demand in to is well due the ongoing We Furthermore, deglobalization, in toward

adjusting, clearly adjusting Slide key factors EBITDA -- is XX, -- for driver. adjusted a business. key as the earlier, affecting price, is discussed shows the base key robber -- Strong the

I'd million share buyback buybacks to flow back were Before debt the I in share an in update our $XX to cash quarter. the we pass, on call Corning in like With and level. strong fund QX, to provide able

have of average thirds buyback per share As program $XX our of two the an completed end at of the million of we $XX price approximately quarter, share.

We $XX million. debt $XXX by to also reduced million our

Our debt-to-EBITDA ratio X.XX. now stands at

across the our the range. XXXX, the further improved this ratio EBITDA middle year debt and I X expect would the likely expect to levels X.X will the of We end decrease in we reduction. with continue will

As but targets The point achieved and by the step weeks, we interest decrease this approximately announced current and buyback with buyback in driven improved was contributed term complete couple payment expect a new $XX strong those earlier to benefit in by QX. additional week, now next rate change the short earnings, tied save initiate loans, terms XX-basis of I forward We also cash improved we to for in $XXX,XXX afterwards. emission XX We months. million flow the loans. us in And next expect This the the going we'll terms. will QX. some cash expect the stay with believe of to over

repurchase long and as enhancing we as cash will pace or prioritize projects with shares in of first, and flow. and debt will growth portion We opportunistically the our profit slower near a our new we buyback stay free rage,

turn the the guidance XXXX our will the call discuss rest to I of back Corning year. for

Corning Painter

Jeff. Thanks,

Slide to Turning XX.

landing we our days no the we QX quarter, benefited lending. expected at and confident than pulled almost in what this our $XXX impacts from exciting earlier, reiterating are is timing of landing backdrop, while in Against up midpoint. million was hard million, back these about said we $XXX and the stronger April. Macroeconomics XX% our customers soft control XXXX we to guidance can business As

$X.XX $X.XX at to midpoint. guidance per continues up range EPS share Our be adjusted the to XX%

In to like few you closing, with a I'd thoughts. leave

we like continue our pricing business the higher reset and market. and onshoring is The trends that First, our a accelerated have have in business already was rubber costs and is Global for with entry baseline sustainable commodity in the is special. new achieved will combined this deglobalization, business expansion. future not specialty to rubber underway be our

begun. they're not indication Second, we're that business although not really cycle. are tire XXXX to type of We knows no item. has demand cycle economic resilient. the landing will is and the be consumable, discretionary one tire pricing a the relatively believe heading Well, is demand for. already of Tires One this immune the

differentiated highly our for the will with demand products global cycle. return Third, specialty business

will and products chasing sustainable track. investments such the new destroy us that in developing [Indiscernible] Meanwhile, on focused grades help conductive will our is we value Houston volume. not fuel in conductors Fourth, project Our area by innovative as demand.

second expect start year. product in of We the XXXX, the half to in with plant shipping the commercial up

by in electric to continue carbon vehicles market a opportunity. growth great conductive We see the driven as

see was Fifth you've heavy times not like And metrics beyond. seen goals but of seven six sound XXXX an future our reach about environmental Orion. for key you, we're to our and other spending. that I to that we in exciting know on I growth me. don't us to increased the for way face business ROCE what and does for a

achieve our years, us, spent lay growth, XXXX flow and next Day. returns I the flow discussed of for for are upon Investor expect our in over the have get we years us and sustained to where past the free each We cash strong is profitability we foundation today, three five profitable exceptional next to The the phase shareholders. of growth journey and as cash working

please up line for you. open Operator, the questions now. Thank

Operator

now UBS. go Josh question-and-answer from Our comes We'll Spector a [Operator be you. with first Thank ahead. session. Instructions] question conducting Please

Josh Spector

on there. Yeah, up my questions. just items of follow taking for the strong thanks And I on here. quarter congrats and onetime a to some just specialty wanted hi,

comment to some for there's to kind versus on any how there's any outlook, thought are, your if Just potential change hold higher. and you a about mix of onetime quarter those a of And if specialty, curious, you above? could the

Corning Painter

Sure.

in of for So most really a and specialty that play was non-repeating factor we didn't out more the us items rubber. had

the may on quarter, weaker. seeing have market I the last but stronger underlying you really not evolved, as And be based the just has than rubber probably since little little bit you're more turning in can suggested a last demand a really So business. of see as that what we think the time, specialty pricing, performance clean specialty we of see,

Josh Spector

mid-XXXX. potentially mean, controls of kind against announced kind Okay, the Russian I earnings last towards rubber. additional the black import of that's within ban Europe's really think I since I carbon just, looking mean, helpful. And And and call,

Just resulted full-on that's Russia? curious customer if increase to prepare really early against effective be in there? ban change with that? in Any implementing discussions can if for in any And conversations a Europe basically

Corning Painter

absolutely that's in industry. noted was the Yeah,

are we into currently than earlier As both also in negotiations is years we negotiations I'd last for got bit said, But for XXXX. typical. on year, XXXX a say early we

think mind. I it's on everybody's

think I it. they'll do

committed as stands capacity in They somewhat an Russian they're black. back that. clearly think cut from first opportunity it. for Europe it's just on gain to all, I But to everyone, doing carbon of

Josh Spector

Okay, thanks. for it I'll now. leave there

Corning Painter

Thank you, Josh. right. All

Operator

Kapsch Next ahead. go question from with Chris Loop Please comes Capital.

Chris Kapsch

then, what of Yeah, there is and looking better specialty the volume was were up year-over-year you you're you volume the said. anticipated? had commentary than comp the and associated looking that there some just trends with of it's overall, to I And also on saying some it's follow think but stocking, around

wondering just far how that's more I'm the what playing if what that in concluded of second So how, talk pronounced? quarter? destocking of out the kind about if best parts you the And could channel, was has into

Corning Painter

Nobody say, a oil have In volatility and lot of see else. and wants Sure. inventory. everything general, that I'd the customers Chris, banking to in

So certainly pattern, there certain this their customers like some at point. signs just are I'd they're say they order looking back they're with at in

a for till but where people I to be, go. about are more at they going careful So point think to the they've want they to couple destock restocking, things be see where months least practiced

But year, say, the kind based look last it mail if days. of see terms exception down in a where item broad fairly cutting That get you but businesses the is you derivative broad-based. back. little sort this thing clear, pretty expected. you at the you advertising, less stronger say I people ink, And just of with still think the said saw But than we probably than that had volumes, be second discretionary junk perhaps like expected. overall, better of it trend, was to these quarter of I'd we was maybe from we that

Chris Kapsch

And more about I'm curious of get based and the on I number we about, buyback of parallel, cash had good can sort could on kind kind magnitude. for bit just question and provide we then the accurate a generation also, the pretty the can for in free endorsement board's metric maybe Got another that. that behind you a color just of flow assumptions think it, to of guidance just 'XX. provided, pretty little thinking

you. and say, But I it this 'XX, feed in into up think looks big or should I'm CapEx the of the a their step here board next expressed year. recognize But Thank about does be and I curious the appetite flow, cash to talks buyback? you free know, the don't that about like value I directionally, provided there'll willingness, for

Corning Painter

to as that around XX%. buyback. shareholders that last an a And did well, first all, we of we lux from authorization and year, company, doing our Sure, have get a conceptually was

in full we've amount. of from is the from said, that board the we now has our that what authorization use So authorization basically, over that announcement this as management basically to shareholders, length

that? and see would of Jeff, to to year opportunities as pace exercising the this clear, productivity first we going forth to not and opportunistically certain like that. on how We depend expand we going put on so that we're and would put out. growth, to next do the we they do be one. would at on investments I you'd so the growth we would same much did ahead anything how To is sustainability come do expect it

Jeff Glajch

Chris. Sure,

cash multiyear, the level we opportunities, we some despite ability looked growth a still, at that data good think at I that keep cashflow have looking looking buyback. at growth have realize at to the our for board good and available and a some expectations, really opportunities our those and would the

approach over those sustainability So rather than those let's purchase basis. Corning of first. will at we forward, again, going enhancements this go look doing piecemeal growth, this investments, took multiyear will they as but those And the opportunistically, a investments, those said profit,

Corning Painter

undervalued. comment, think Board, our company, final see the another open price reflects that management, that's one And we we just I it the just all -- that, significantly Maybe reason for have share this is why us.

Chris Kapsch

benefits haven't business. that you follow pull the second with if quarter? it Got Does I just mean, some wondering a up of just it. think in regarding on of rubber of that quarter. characterizes just Or with like what a Thank sort the terms quarter And quick that -- in that though, of in second first forward demand? the for kind the negative become one you just characterize to you. about was -- timing the in me how issue

Corning Painter

Yeah.

mean, time. clear, you. wanted run-rate. timing we it. a positive There's So bit. impacts. XXX quarter, just net thank there's be talk always often about quarter, second the didn't that out, I They're to isn't negative fourth this because timing little clean call a in impacts some We the were But to

think I it's just that's we're kind when it is something a XX still step think I to of year that to on this four just about wanted discourage up But I we're us one-on-one we think proud for big XX kind the think track. of, at don't because people get approach point. of shows and a times really accurate

in of April sure a that was weaker. reverse bit Some will little

from a was we but -- our being the do first down So actual can little can this run you our us rate don't guidance, you for quarter. down know imagine I imagine in where bit being don't

effects. playing strength these of [Indiscernible] nor the that our we provided. much take very none how full that affects year business, mean, the it with overall give guidance is for overall of that see the timing track is the obviously we ourselves us see out I on said, year None we the That still underlying of

Chris Kapsch

Thank you.

Operator

Securities. go Our Please with next CJS Tanwanteng Jon comes ahead. question from

Pete Lukas

Lukas Pete It's morning. John. good Hi, Yes. for

short most You to have and maybe forward demand you going here, just update could term or if us utilization covered China in I expected questions. there medium the or of guess guys term? trend on is my short how

Corning Painter

China. Sure. it's that right little for Well, are, a things their the now, we economy which about with market really in I'd general some areas in bit specialty trend two think about If to and their in going say, slow China. exports,

I black, Europe. exports some For little rubber part and run-rate. next And surely year Chinese though, in will automotive, XXXX. a again, involve than The China the bit rubber of the the Europe question from carbon for solution China or slower for into terms of in think opportunity is Europe

positive that's think outlook of term a I a so terms China. longer sort in for And of

Pete Lukas

I'll queue. in helpful, back Very jump thanks.

Corning Painter

Pete. thanks, Alright,

Operator

Our Morgan. with comes Please go next JP from question Jeff Zekauskas ahead.

Jeff Zekauskas

In there? your had per specialty sequentially. was cost came sort black, What's blacks, this relatively or had something to Thanks quarter, $XXX per in quarter? then else? about it of Because XXX ton very the And Is really in a what cost for about much. that ton. mix, happened ton. And decreased down rubber that that stable on you is going

Jeff Glajch

Or showed lots the -- where at looking we are you

Jeff Zekauskas

from calculating Not, your it tonnage?

Jeff Glajch

Okay, well, example, though maybe look for approach, at to one -- going at, look we're to is

Jeff Zekauskas

slide. drop and a at million there's in your costs $XX million on costs? said You in EBITDA What's benefit that going $XX

Jeff Glajch

that we're for is to specialty at if example. A look the waterfall timing going the impacts. so lot Right, slide, of of

in dislocation no cost underlying where factor. for is fixed or step example. was our sort in sudden So for that's I formulas of negative costs, terms input pricing change There work and that the in can costs what a when our thing, you like the fundamental give move costs, a us, there our there's happens for our a out? in of That past how

Jeff Zekauskas

how $XX the onetime items, know. the were quarter, they? million don't in much with So I

Corning Painter

were that And items a $X onetime about two combinations of onetime third million the to of onetime timing. is were total, thirds timing. in Jeff, were So items of which and the $X million about items, a there

Jeff Zekauskas

it would two you the allocate how to And businesses?

Corning Painter

The for was in the onetime mix a The in items were rubber more specialty. little of probably think timing, there a all essentially specialty. I bit

Jeff Zekauskas

a lot quarter. of real the in Okay, because rather rubber was so in specialty strength a than

Okay.

You that customers of Does disinclination that States open with and of beginning United both Europe? do buy in And the Is from Europe to to Europe? negotiations do true does have talked pricing or up. have that to to only the the about Russia?

Corning Painter

I'd So of going some that's this is year this a longer most be to take and not I some buy out that think band a and people year, next commitments. pricing would say done popular I'll for plays but midyear, mid-June, because term for Maybe think, that's spot China, from approach. but half

Though I think say X. be going certainly are be my of and totally more That the U.S. there's people to and yeah, to around market European concern read on situation. January tight. also it. And the I'd free is would want energy emphasis

Operator

Our Jefferies. next Lawrence ahead. with Please comes Alexander from question go

Unidentified Analyst

on Hey, you morning. Lawrence. my from good This for question. is [indiscernible] Thank taking

cycle quite being sort scenario? the to an I event of any fail or downside you event pull about in can Just sort et I on of this scenarios year, what in guess the business a could touched I'm recession back about mitigate pull curious of just of levers a weighing? cetera? the curious, it's are bit you volumes, the XXXX. deteriorating outlook. just your how half sort downside in a confident of already your you But what guess of I So And guess

Corning Painter

the, Well, could say I'd we recessionary hold mile our current say this, impact. think let guidance, say, me a let's we

that I customers out take the second don't half on for bullish always bit of right now, in I the very is a think year. our the So confidence a that half The the the our little second second X%-ish say volumes, that year say, little our of I to bit But having current year. think That's started know the on half. regard concerning. we we've got again, for in ability guidance.

Unidentified Analyst

very you much. thank Okay,

Operator

from Please next Jefferies. with Alexander Laurence question comes go Our ahead.

Corning Painter

Lawrence, maybe on mute? you're

Laurence Alexander

I apologize.

in us queue. I both of the think we had

to would shock, accelerate about So have blacks? the quarters, ask isn't I markets of other a In specialty take demand shock mixed can what's could end mix of I'll you is, you profit purely characterize the you there on strongest? few over it's depending Or the happen? much which question guess words, can effects? advantage or on decline per If tons you I'll for be just how mix just question, The then see, demand next a driving to the that it.

Corning Painter

our customer. our end the price value markets, for So, based on we we're creating

have We technologies. range wide of different very some production very,

is always to a So large for mix thing be us. going

trend, strong underlying scenario, reflect of you Yeah, So the example, some surge, grades, lower move so and the suddenly you the see doesn't the and have sure if up. to say, But for demand longer in trend. it can that and can you But master deteriorate we products of for of look you at, really, down saw really let's see, that really strength batch see mix a TTM the end forth in grades. new business. term that absolutely, move impact only doesn't

Laurence Alexander

you. Thank

Corning Painter

given just quarter we're driving we therefore, in any clarify. that this the mean, trend. But me I I upward to conductors with room continue and with noise for the that. there's see new products think Let

Laurence Alexander

it. Got

Operator

comes question Rock. from ahead. go next Kyle from Mowery Please Grizzly Our

Kyle Mowery

to growth My for Chris's question is buyback versus a follow around my morning. you taking projects. Good up And question. the question thank

you're many to Some returns. done? been bottleneck ROIC, terms is CapEx What years high have easily come of your board's you and there break when extremely I sitting Are plus last growth to there more types be to projects few growth? prioritizing looking XX% of at of in and of of growth, like projects sort in buyback out of mind. are the versus sort how the the ROCE willing the mean,

Corning Painter

one to But bit do there's of a high of area is the gives limit just low a conductivity, to forth. terms be level our in It sources. moat want of business the of additional I And move. product who this sort that. And see people impurities, to say particular access real able to online. of level the and I'd little acetylene in capacity business that of a a we that's come us so benefit element Well, conductors, of make very can this around for so with think

as So an that those, be do area can we that's there.

the been say cogen out opportunities to we investments, and out I'd cautious years. as company, for separate got a even do as very have many, there's things to like carved result, plant We before a many around that other just unit where in on step just came that, it. quality also and old upgrade equipment could get we capacity investments plant and of or a like change

So say of I in those. we something was range. more have But XX% would the even Kyle if

that's we cost capital. support substantially So of that. still above our And would

a to capital So approach allocate see we is way underbalanced, moving forward. we understand the ways price number this significantly share take the can different buyback look these at is as we ability one, to we see balanced

And forward. much finally, moving got flow we've that cash better

plans board up the purchases. wanted implement board a make the let's say, set needing to to us longer and So give up share just, without go range, to to flexibility to

help? we speed we share to the said, in the we plan do had. what Jeff As don't anywhere that on that Does of this did purchases just tranche near first

Kyle Mowery

question. Thanks Absolutely. great Those investments in the business. taking sounds like for my

Operator

Our next go UBS. question Josh from with ahead. Please comes Spector

Josh Spector

follow thanks cadence. of here. the A just ask, in to kind couple back want ups, I letting Yeah, on me of for earnings

your to quarter? step slightly sequential your run-rate you think think I be below level a Typically, say. earnings, about, talked there's first Corning up I'd in XQ you in

you do X%? else So some customers volumes there's driving there something your normalization? ordered expect and a that? rubber, is Or down you now quarter more on first comments some of So, than in think the from your over

Corning Painter

one, go we Actually, pretty right? good I think was share bit just things. as may through looks so a weak. far a couple Number we April little it.

at demand, the rubber look the just if U.S. think let's of you at look I indicators

So we March. bit a in drop trucking saw activity

hand, to consumption, other up metric. the but like On miles you coming are a be tend saw nice, they lagging things driven gasoline with

So of in what's the it's little a happening marketplace. a bit picture, mixed

to business. our again, April, bit this in specialty all than general, a the to that We'll all, that best But big think about be I what's of was don't and that is think, going on softer nice rate for front. But on quarter little the in do weaker make of quarter. the a probably I for sides up two side. think having the given I it's underlying That's structural. But we're bit first really we any little

Sometimes low, be an those going some If to prices reverse. there'll of inventory also are oil onetime reduction. events stay

So repricing of inventory. the our

the this So of noise kinds to kind of quarter. can of things some that those are create quarter

I I really But business think first do just quarter than one. remains stress, be think second the weaker the to underlying bit going I little is a the strong.

Josh Spector

I no, to wanted ask I And that. appreciate Okay, Huaibei.

I front Was a comments deck commercial its into some previously? expected first end You Are But am reading said, that? had in ramping the the you up much I what of change product about, XXXX. or commissioning you too think now. trials you in versus that that more slowly

Corning Painter

markets. done specialty that that out We're of said qualification commercial into we've others, miscommunication. lines, a your real doing like I mean, easier the was getting already that I on some especially sales capacity No, that but out, selling qualification a site. on samples out of if some meanwhile, focus

we I quarter, running. totally contribution commercial in think that's That's Big that. see up clear. right the But none the and third we'll to second and like be not in have now now and that of So more the sales fourth. right

Josh Spector

to trying next mean, way going would drag there's we you that should to enough and really I year. Okay, that as considering think burden if yeah. to not or consider? say we meaningful I other more look much facility baked actually up the be fills of has that a in there's cost it And it was a is

Corning Painter

so of given. hope it's we've all guidance that first all, I our in

of most site. probably the have had that costs We fixed of

You've step last would It quarter. up a saw this the most in perhaps probably in of second quarter. be that modest

Josh Spector

Thank right. you. all Okay,

Operator

go Our from ahead. Jeff next with question comes JPMorgan. Please Zekauskas

Jeff Zekauskas

Thanks.

be weakness stronger some the the about sequentially the than in in talked demand volumes Should in You specialty quarter or second weaker? or April. first same

Corning Painter

quarter are just so, little build could we second on in specialty quarter where think it bit future. the on the see. these Well, But about first a was I predictions the trends the in

Jeff Zekauskas

because bit? that a And narrows the are in That your stuff? margins onetime of your prices changes materials? And sequential part little of raw lower, items

Corning Painter

more costs -- in it price moves move No, way as than moves is it other around. and one clear no. The and can index. quickly, customers, be QX, it was for my an the more hey the time To like input quickly it all down, can

I noise. So always of our again, had But one-on-one a it's items go run it. all clean side. into clarify, the isn't towards just a We And we just just now. like favorable these of tipped wanted rate bit right little number don't to

Jeff Zekauskas

much. Thanks so

Jeff Glajch

Hey, I costs, one just of question last on versus Jeff. Jeff, your earlier year clarify to wanted thing -- QX lower

Jeff Zekauskas

quarter, versus fourth Fourth the quarter.

Jeff Glajch

Okay.

Nevermind. Okay.

[Indiscernible I Okay. X:XX:XX] was

Jeff Zekauskas

right. All

Operator

There time. are would Chief ahead. Corning like at Executive Officer this to over the Painter, comments. closing questions Sir, floor I turn no back go further for to

Corning Painter

for and Thank And questions, we our appreciate your of much. to further pool. restructuring as We investment continued and you, support. appreciate the big marketplace them information very we thank our some in you you We today. analysts to all to further joining play everyone, the very can your out. appreciation deliver for piercing investors insightful good our you and our continues that. to a us and engaging investors broader out believe And Thank

Operator

today's This teleconference. concludes

lines at your disconnect your you time. may participation. for Thank this You

Orion Engineered Carbons (OEC) 4 May 232023 Q1 Earnings call transcript