OEC - Earnings call 4 2023 | Orion Engineered Carbons S.A.

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Operator

Greetings, and welcome to Orion S.A. Full Year 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Wendy Wilson, Head of Investor Relations. Thank you, Ms. Wilson.

begin. may You

Wendy Wilson

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

circumstances presentation this to the referencing update non-GAAP These Corning the differ comparable may be call and the some obligated call.Before the in statements like will described We subject those on to risks from statements. I'd directly begin, statements GAAP during based as of the is SEC, described your our forward-looking are are made the attached press the turn are as measures to new the to remind of not actual revised to addition, we call February uncertainties XX, statements will company call.In Painter. during during all release.I are forward-looking that table any most this forward-looking measures The company's results discussed now you and the or XXXX. over expectation. to today's reconciled filings comments made call today, in with on financial All

Corning Painter

joining record-adjusted In our growth. Thank you, EBITDA, of today. Wendy. year year everyone, Good third call morning, for we you our delivered thank XXXX, and another of

our with the X, which XXXX be waterfall over we key the relatively contract you the have we results XXXX as When was our and had in is, If good this we cooled this impactful believe just sets weak cycle rubber As markets. well been or pricing you'll off despite EBITDA demand underlying goals for through initial predicted, the markets beaten will could that slowing how takes guidance. not the us.The negotiated satisfied. Slide our XXXX our demand us even round Jeff achieved up cycle, is, later as impacted on news how I for see good in the line are year. year, not

about about cautious I'll diluted January full XX later call.Focusing guidance on on remain our our and release, in reflects was at our from and customers $X.XX. that. volume, adjusted adjusted explain XXXX pre-release and year came $XXX million that Our XXXX EBITDA consistent with more commentary press EPS the

We $X.XX strong We by returned also flow repurchasing shareholders cash delivered stock. to per strengthened share operating sheet. balance our and

this is reduction, capital A shareholders. now how focus thank $X.XX Well Xx after net for to We our $XX just debt teams. upgrade returning our in also we by EBITDA, big you completed lowered growth, debt top million. our This our allocation done. safety. EBITDA per down This to I responsibility huge allows my is allocation U.S. It express X.XXx the to to to air Orion. capital hard ago.On the to from operations as our project front, operations months see engineering share, our final value and XX or and us emission leverage reduced

our to presentation, we allocation, Beyond capacity our our means also goal. in and XXXX we of can capital later earnings work reliability, the see shift the emissions air mid-cycle you'll more completing implications for quality.As effort are just confirming productivity,

featured review to in today. the in achievable. call.There this we something Jeff slides conditions need those we'll capacity, will more the is path our more load market more pre-COVID clear While are beyond later that so the XXXX many highlights like believe and to fully we

reduction received steps of in a XXXX our the goals. to emissions points payments target our achieved our We completed a our and in our rate sustainability-linked advance we've term journey loan. number interest example, U.S. For in XX on sustainability basis

industry want international materials in make carbon support wide also we cost biocircular effective.Also, carbon sustainability is them tire as X-year a European the our costs black batteries further a grant process we to this also to with for certification secured for and customers aimed sustainable we If selected black. we could with the specialty million.We just Orion producing at reduce our X.X million demonstrate a a loan develop make million grades help a and flagship for believe traceable funding in by and kappa conductive in alternative certified of our customers and a cost-based to all black X more challenge sources. the of That's materials. portion environmental XXXX, a one were financing help build improve circular carbon of means value plant It's carbon already shown production us goal. We demand from sites. is these efficiency We've cost and raw targets to to We more German range who with proposition. term make companies government believe there's for to product new more not were we carbon lead economy, with and now black It for If of the that specialty EUR link for carbon $X.X now well-positioned strong We first can Cologne. we Union meet $XXX this XX, XXXX, the years, you of the will that number agreed to competitive. this the a carbon what from we will of climate-neutral recall, these That's the loan to market. total with. introduced done.The

model.Looking achievements reflecting X a weak be sustainability specialty All market continues units, of demand at to business these our advance business as broader conditions subdued.

an XX cable, number ongoing new high-performance related markets. and using upgrade qualifications, We've the kappa in this We of like debottlenecking We've to wins grades. plants, the and also wire technical the and battery, our our of several are market. surface-treated introduce to coatings achieved milestones customer as new products push to opportunity a recent achieved

In and be build of allow ban with plans business, us our allow the for financial negotiations Russian plan. to customers' surprise at our this successfully this, benefits formulations XXXX volumes growth to gained addition Europe in into black. these That with confidence.In should new coming them rubber per we to the support successes no on we completed better the all carbon

demand tire succeeded top in for customers from we prices of this of year's step and outlook several relatively -- our the actions change. at reasons. and did some a on Importantly, industry.We've face raised step year last the weak in of time We painful

we as tire grown production. and debottlenecking markets financial industry space tire projects, the was the patterns not. by where recent attractive burden, has their of on to EBITDA industry we positive wants our in emissions naturally stabilized the investment earn local ban up In which materials our but The profitability. investments, black importance to the closure, need spending a has our not to warrants make uptime at June. That adjusted stepping for plants, It based happen current set of people air capital. above manufacture.Second, -- coming in niche and also not is. compliance carbon capacity a are ROCE air investors.Slide level in we and the First, us.With are a on year. completion renew and in Europe continued is who work, behind long-term investment in consecutive return only this year XXXX, also All expect investments end-of-life in good key offerings. you, announcements our is and investment growth, return have the North market the America or America, ask in our capacity third in in a on but the This visual capacity, markets, capacity of us and North our emission This has restructured. very been a fair our a the structural continue. we U.S. X capacity representation demand our maintenance Union, or been beyond another is R&D We're replacing in has to Jeff our improve goals. Orion, and investments new sustainable that a XXXX, to investment offset our space work need trend has make our guidance would U.S. plants. well.Third, return. record results long-term cost is plant our chemical our and this this Russian to of There this many effective record The for other plant growth. restructuring. trade additional have of those add into people, our we're well supply or that By and going equipment, industry some capacity for great with chain a insights our Despite in that had I how who European a amplifying Tire The in special to of companies changes we to there's forward. provide should that reflects the on There that, seeing growing other additions a our customers countries is

Jeffrey Glajch

consolidated Thank can On the Slide you, results Corning. see for the X, quarter. you fourth

volume businesses polymers due offset the I lower segments. and in was appendix.For EBITDA Revenue facility will volume profit Americas. are to oil mainly unfavorable market in and higher electricity to from rubber the lower new effects slide, our in and lower financial the China. this profit but the per by mix down both was quarterly, specialty full essentially year, the the geographic for more the cogeneration contractual detailed the by on ton in pricing and Beyond product and offset QX, was pricing from pricing in focus up quarter.Gross from walks gross both were business, European partly due in This flat our

up timing turnaround profit higher due addition, startup per maintenance and was slightly items profit was last year, the weak final down gross at to the affected QX Huaibei, quarter.Gross cost, rubber $XXX. ton EPA but Rubber other In versus activity, reasons. sequentially in several including

China more but This in volume was the swing geographical we First, volume impacts up, in adversely slightly Americas. profit. less and gross had

versus and the prior EPA And very ton sequentially which $XXX. costs at hurt gross sharply on from level.Specialty electricity per cogeneration gross Europe. lower expected at project, down impact Second, the was prices and continued year finally, Huaibei final in profit profit rubber startup

While global basis we a resulted specialty. rubber prices the European are Europe, it volumes specialty Xx quarter.Specialty the less mix to from similar more Huaibei. at higher the by product cogen impacted than Xx lower a in had rubber. per ton was on profitable effects primarily since market margin electricity on volume, polymer lower impactful to This are in was in

specialty to due due provision items. Finally, in near We'll our was LTIP related rate the charges. and more impacted to slides.One a to subsequent was full tax item year how a the which was both of prior were extremely expect full the German timing recover in startup, term high. costs final year tax up a items and XXXX, higher for tax back we rate, specifically XX%. adjustment, longer This talk full true-up our about and to in a quarter, audit tax tax year going rate a year tax The few maintenance,

be to XXXX.On back Slide X. for expect near We to XX%

specialty elevated demand level from the to negotiations all dramatically been For in down the profit $XX a full businesses. on Ultimately, This China. our this impact of have progressed. had was year across Mixed million impact, deteriorated success numerous Customer both the prices were gross as up record due headwinds regions ton XXXX Electricity their results.Without XXXX. end despite instead adjusted in Europe except performance $XX. would helped the EBITDA of relative us pricing per a in rubber volume XXXX achieve alone our year, markets. lower of $XX weakened

improve With very make market, both comparable. volume prices a the drivers. cogeneration. and over high rubber those pricing the across Strong difficult printing electricity Last in expect X provides the was we offset year-to-date less year's European EBITDA businesses to exception markets weaker of by for from time.Slide benefits

was by X, and our EMEA startup We of Huaibei the production volume EPA those the offset Americas recovery a but startup higher and We our experienced effects.It's to was was note XXXX. with gross this pricing the important that up cogeneration decrease and Slide impacted rubber markets. in in by lower partially also XXXX related profit per ton driven increases, lack lower in per demand ton gross compared tire costs, price costs.On contractual have XX% by profit

rubber, the As XX, we're and Four, significant to pricing printing as to Slide effects toward signs. relatively to volume, discussed most across next EPA us.On And market the successful waterfall Corning for business levels.Slide discussed our remains and upside waterfall and expect line as to geographic were volumes geographies negotiation have we'll polymer improve, flat affecting as those see starting noted, five, as the of of year, battery slide.On a weakness as well as mix, premium see lower mid-cycle of Two, for forward, on as both the you Three, the of ton you in offset which behind the but chart some will improve direction in contributed the a per the should which full Volume Gross shows which change startup in previous in to effects metrics by conditions. The Huaibei especially XXXX cogeneration and Slide mix well mix, of debottlenecking which the in we more will improve weaker mainly with the pricing financial It's per positive Volumes gross China specialty, result see be are with market, believe year's for and promising chart down. the X look to lower as categories move had reduction previous mix ton costs. the All due gains on decreased sales, see to year profit costs power. market. in a in we other market the believe cogeneration following European due XXXX we our with early, you pricing effects, products. conditions we was in a shows slide. XX. profit the as in us. mix move results.As we power specialty.

the mix specific XX the the stable.Slide for for looks that in year. cash products we flow at has Importantly, of quarter, remained pricing sold our

both by shares Our flow repurchase our reduce allowed to us and of $XX improved million. worth cash million $XX debt

debt $X.XX months per from Xx to earlier nearly spent down EBITDA and on Our share at our XX repurchase to X.XX, we call, ratio debt. to the mentioned now Corning just per stands $X.XX stocks share ago.As reduce

Our goal We've areas net balance strengthen and to these progress transitioned is our improve Slide debt all EBITDA year.On substantial our reduce total the our over XX, ratio, made continue to million sheet. to profitability, to time, in conversion our we customer debt, have past dramatic of as discretionary have EPA we up rate and same $XX projects. from at changes our our conversion in our in improvement the flow stepped that our XXXX working increase cash completing in capital Note included agreements. a

CapEx our on be which will a XXXX.Let's majority growth capital XX. XXXX, return maintain This to We EPA to LaPorte, projects, EPA focus spending, well we related investments our now expect as at maintenance capital expect and as benefit conductives plant growth spending on the Texas. reduced reliability.For significant CapEx and EBITDA of a in of in high With XXXX, and in our our us. future XXXX spending higher XXXX to through this will Up in is had behind no projects level look Slide increased report. improve sustained we for

in also will high investments in We EBITDA than XXXX XXXX some shown carry capacity specialty Other return us projects goals. beyond the LaPorte, complete our our debottlenecking business. growth mid-cycle

and growth be develop those discretionary a line We will XX. LaPorte, spend placeholder.On as again, this later we is $XXX a part this our at projects are prioritize $XX process.Perhaps placeholder for The to in as between we our of to allocation fully These another and $XXX XXXX productivity currently million potential prioritize accordingly hash committed plan for are of this will approximately will we XXXX. $XX maintenance not XXXX year.The them way those is point, capital to CapEx just and million million to at expect to remaining Slide to and capital opportunities. look million

offset our at EBITDA. demand Before We million guidance, at not toward to to of be mid-cycle extraordinary on expect we $XXX pricing our our believe would for XXXX global we and of that from an update for in discuss for LaPorte. incremental volume to to would capacity but expect specialty of pricing level, would specialty. We XXkt the increase utilization levels. sufficiently provide we would would black, economies a range, rubber product inflation.The XXXkt to XXXkt excludes rather volume correspond progress goal upper pre-COVID carbon plant volume our XXXkt XXXkt and which mid-cycle, XX% to generate The the cost want

not For the volume require except investment us significant LaPorte meet levels, to we project. do these growth

before volumes we are confident we again.On these can achieved XX. have We do and it Slide

move and of midpoint to major there the $XXX million X -- to $XXX XXXX from EBITDA. $XXX As have are a will components. it To will guidance shortly, million million, of discuss Corning

an in per minimal needed not per the volume line EBITDA is is add capacity again, mid-XXXX. this First million to $XXX off, midpoints, rubber would $XX to XX% and in most of that much approximately $XX with stream and gain capacity our some The business projects $XXX, portion volume with be are this But ton and levels.There's the comes The million incremental in rubber for should achieve sense. growth ton of the current volume increases.Using compared place approximately recovered a requires high-end plant, of in the GP of improvement, math for products. Most to makes on expect includes XXkt specialty be the of our XXkt debottlenecking cost, the at completely volume these This to for of volume XXXkt very already XXkt market in gains added specialty our that, in to end about to remaining conductives $XX level. LaPorte XXXX. is markets we mid-cycle XX%, which kappa margin. million. estimates in primarily from former Most in XXkt million split with

to incremental exercise. volume in XXkt is closer volume is volume debottlenecking not products, simply For due market gains past. current math that higher-end in has the plus to have which specialty, per projects This our incremental discussed ton. the is $XXX lower a we of mix, in partly recovery the profit, This a the including our

turn is guidance. products over details specific that, million margin our business levels pricing have the will The also XX-XX of are achieve discuss between appendix call in specialty. high-end We $XX and back markets and roughly margin million The that gains target each are XXXX $XXX mix. these for slides.With the rubber today.Finally, the Corning to to I in split

Corning Painter

to up X points. to whatever $XXX which $X.XX adjusted of for guidance our are of adjusted midpoint.I'll are chemical $X.XX to Chinese $X,XXX to similar and ton that soft believe we've setting EBITDA the XXXX. for and midpoint we on in and we to in brings, XXXX in observed, the clarification. Orion.We sense XXXX. close and guidance we just supports expect today. year single-digit XX% base.With percentage discussions growth Thanks, a another profits of our EBITDA our Many XXXX at Jeff. expected is confident EU reasons the landing are is in growth achieved per our EBITDA mid that projecting at we're and And adjusted markets an for the That will increase in per one in well their share, million we of economies, projections weakness business guidance record in on just back over saw positioned customers This lower specialty, bouncing we range and and our all EPS X% range our growth with slow shrinking a $XXX XXXX It's with recovery the we given the be EBITDA think million the from firms makes outlined.Based for Jeff said, be the are what and it U.S.

said. year's on built pricing enough rubber we First, gains, last

we're in see a rebound Second, in to QX. mix specialty beginning

our our year growth, Third, some huge expectation plant the projects debottlenecking Raju, cash don't on from U.S. we EBITDA XXXX lines high-value Fourth, reduction have improve. like is our in we the to working us. LaPorte, that third Sixth, improved be investments was Nonetheless, emissions This for and are fourth. new this acetylene-based year. last are straight and did up air terms our Texas, of XXXX customer Fifth, is growth capital year customers of the for products underlying one-time focused that, discretionary our complete. will questions. continues want.With our please our open the

Operator

line The Josh of comes Instructions] Spector [Operator first UBS. with question from the

Joshua Spector

base as wanted of in be? in should the think, I million-ish you I invest So context a in ask case, case? show so you ask that may need I XXXX, specialty. expecting comments, what clarified around you bit, more then is have the what And have base really, CapEx. a And to but you capacity $XXX Jeff, de-bottlenecking the and if would -- we in be

You maybe how thinking grow It outlook your year. And into have volume cash to and about over few years just the a pretty versus you're could capacity return seem on next growth. muted wondering dynamic? I'm shift this would different you that

Corning Painter

Yes.

look think that I as And cash at we'll track correct, You we should next number additional you're $XXX think we'll a strategic then and for million the So we're have consider options. of about right? year. on

there's say, show opportunities, green discretionary for for. track here maybe other via So best around that share It be we I'd projects.But like light continue capital we that Jeff, some, or see let's the our trying say that to see have on might to really profitability want there. mechanisms simply productivity growth have that we in $XXX you'd that element is be And anything we're is million are we It decide might we're to return an for we the what to invest no. enhance to opportunities important to thing lower-risk purchase Really, to batteries something add? us. and it. just

Jeffrey Glajch

that's pretty clear. No, I think

later approach for looking right this get what's year. our calendar We into will in We're XXXX allocation as us. capital we this decide the

levels, have XXXX we though, importantly, not likely that. or if or the growth significant impact CapEx, XXXX productivity it's think profitability to do more in for spend I a on beyond

Joshua Spector

context hundred at specialty? do that about seeing might on spent fair today. volumes it in couple XX are not say that's growth embedded there look of And But success a Slide you and you I million investments and I where obviously, the on you're the guess -- returns? what and probably say I investors that -- in your view not investments of mean, those guess what's

Corning Painter

Right.

the So facility not and big stream is we LaPorte, look, specialty in the it's on acetylene one investment yet. have in

So your should see And but would no and that at don't have concern People environment the if one choices. is choices expect for say ready, next we company but to it, we act? it's I that we just the million year, right, yet. clear, if from And think think growth "Yes, say, I on don't $XXX on wouldn't a it. think do we has market's think this something clearly, next we look another out then the they're track there, they're should timing's the prospects." So don't there's what's

Joshua Spector

Yes.

Sorry, X investments. underperforming I you've I the LaPorte it just growth the guess over Specialty the obviously, not of guess versus those there? isn't Have met I returns investments? was seeing Is couple Any on last a there. think expectations? about your is hundred how it? we're asking those still historical XXXX. years, in more on spent comments I do you about But mean, million spend.

Corning Painter

for quickly. I'd in us quite a was in us. Ravenna, Berre So for difficult very this strategic say worked opportunity market. that's the was for loaded very I acetylene. in investment us. would more investment It's opened China's It very, the say up out well

environment doing that well. of is Josh? in It's rubber relatively worth much I'd that say it's more right the now China, there business specialty what help, a on the Does challenging side. For

Joshua Spector

Yes, that helps.

Operator

Next comes question Jefferies. the line of Alexander from Laurence with

Daniel Rizzo

I Rizzo you America, for look but Dan Laurence. you XXXX, you -- assumptions in the do you better volumes, assume overall in assume in environment I are assuming China? mean for When and your improvement on at It's know macro Europe,

Corning Painter

environment, would our quite and in back Yes. that kind And say markets, would those is to say up from those us -- drive than really, current would Europe, which more we the decide America, before. demand demand -- would the we of is mid-cycle levels in profile that We would to North fill all that China. weak, take achieved X we that us profile

Daniel Rizzo

guess, So as the we guess back to to then was and the should would -- of I I improvement assume the XXXX way I it? It beginning cadence would about mid-cycle. try that loaded. if the go outlook into half and is XXXX XXXX, back-end think think a we kind wondering about -- get to about then soft we sequential is, a that

Corning Painter

No, no, that. I say wouldn't

I -- I in strong strike XXXX didn't about as not some people's think China sense that an our to economy is as look, QX. me of was in as I It was are. guess accelerate.

bit things think I in are little right And is have now. case cycle. water Europe stressed interesting like an global We'll election challenging in a and America. noticed, North nobody's the

year. So wise our I think the for it's to just to listen customers, who cautious are

better good a again, But out. place we're the I just cycle a plays global in as a XXXX. think economy about XXXX, being the a shot economy in from capacity at have For of talking natural we

Jeffrey Glajch

means. not it. our capacity been just assuming that's XXXX clear, Dan, any be which how representing to for us, number That's we're Yes, a by we've mid-cycle is number

Corning Painter

with really mean, I environment, of I think XXXX could year good But us. the be a return a for

XXXX, have in XXXX, our specialty rubber right? That's in It's economic clear. as I see in going say, swing outlook you a base We the plays as could Okay. But loaded pretty out. won't this upon think to depend and LaPorte in year we business. dramatic volumes or,

Operator

line Next Jon Securities. Tanwanteng comes the from question with CJS of

Jonathan Tanwanteng

you follow-on, a seeing especially what color a QX you far you'd both versus two, GP as And go in my more little could you're that, segments think if you and where coming underlying I so Maybe volume wondering destocking little was on give inventory bit I demand from? and per from an in rebound. seeing through what mentioned end ton trends? that's And just perspective. are

Corning Painter

Yes.

more some we've are of interestingly, seen some -- less which differentiated. strength So areas, in

stronger Let's wire and say and been pipe areas, have film certain degree cable.

certainly China see how stick slight On wait that areas the very see supply right for -- to March weaker now weaker. have America, out so things I flying to adhesives, automotive we that North really not as improvement going And and plastics, and other on comes China.Regionally related the engineered I New but MRG don't Chinese manufacturers be say to think who hand, there, out we'd train, a like and think the a to some Year. that. big hockey until of in see we in in I some Europe that, us if April we're much I'd sentiment. prove wrong happy bit

Jonathan Tanwanteng

versus demand end the inventories destocking tires? on just And Okay. and in especially trends,

Corning Painter

Yes.

hear who clearly, some mean, didn't let's say, like place year. So players, very from last large anecdotally, I orders we distributors,

realized, placed then One largest we're thing ago, to I supply I when warehouse." play think overbought, of like, place in he is my of the is And one how are whole some the ones, to going got predicted this recessions players years X seeing you overbought, to and or us.What began, And and him, owners, previous now it X year's do or compared "How asked a "Wow, to people our out?" have he of those that orders. beginning

is the demand going situation, very least customer there's seems course for this this us at the I indication that a they customer-by-customer space, in that over year and it's improving much out. see at how to So depend think of some point. destocking, But to playing be

Operator

question Zekauskas comes Jeff of line Next from JPMorgan. the with

Lydia Huang

in This is in Can terms talk Jeff. what segment? of the to Specialty you in Huang pricing XXXX for about expect on Lydia

Corning Painter

in in. our we've the price that we're we've -- strength for we pricing said, I think -- have holding specific products been the So as

biggest to in continue supply think year But it. we'll would that and obviously we plays that I be able of this part favor I say dramatic If specifically, to I look that this the would see going important tightening always keep mix in be not a out. year.When very story as market, though, you maybe the demand, do that's at for Orion for think mind to the us. is

able share end value when we certain value, that. more so we more So segments, in add we're sell to

more in, you're So raw I much the pricing say, mix to than where changes. likely customer is let's think end it see

Lydia Huang

quarter see to-date trending in down terms and relation you price do mix, And sequentially to fourth of in it levels? quarter

Corning Painter

not. do we No, No.

Operator

Securities. CJS with comes question Next Jon from Tanwanteng

Jonathan Tanwanteng

if us more a wondering could give competitive environment. you on color was little I the

finished investments. You EP you mentioned, obviously, that your

benefits so. your some how your guidance that's and that you're not the into peers accrues seeing if actually and in done that of wondering And And to I'm you have market? incorporated what

Corning Painter

oftentimes, very when their bring for Most to think plants. of these competitors challenging I that'll play And plants are a so not that's out item. So speak. on plants, us young

And work so was It certainly plant. new challenging. can final did that of us start-up on challenging the as for we our the be equipment

if to see impact, for it possibly out way, in us. expect I'd QX plays or that So that QX

Jonathan Tanwanteng

it that this me Corning, the maybe a And Got it. you ton to to the expect relatively you, was Or kind GP if understand flat prices Did help or -- be volumes the are specific you that was what so mentioned referring mishear Jeff, that year. with per of I prices... just think you that? going expect up? with And to I drivers segment? and

Jeffrey Glajch

$XXX over in ton, Sure to Jon. a expect was I actually which this very similar XXXX. would XXXX, that ton rubber GP expected per year, I we just be think to we rubber, past referencing was

talked inflationary a bit year, increases, last also talked and had forward headwind that had cost which increases.And we for we some the we have the as cost we've bought we of So forward you price -- the we about power increases, about, last little us. helped of on bought cogeneration some we -- if Corning have items recall,

So really we per and that expect was ton GP targeted toward -- rubber.

Jonathan Tanwanteng

you of Can year-over-year Got quantify impact cogen, of it. impact -- the possible? if

Jeffrey Glajch

million the cogen, than more or to do on we even XXXX that. it'll have I'm talking being cogen -- XXXX end you So up and the bit little XXXX XXXX? to Are impact $XX sorry. a perhaps

Jonathan Tanwanteng

be for that more XXXX looking I could But to will you was XXXX? both, great. give If

Jeffrey Glajch

bought. $XX problem. headwind in XXXX sure forward think due have XXXX, to primarily XXXX, XXXX. we the I -- the million. mentioned to $XX we And was it. from Got No price contracts probably in Europe that million we have of have that that we power impact a I'm was to XXXX we

will -- some most most if in perhaps $X beyond but impact that. at have $XX the impact million it price, you another in XXXX, million XXXX, of also see -- look We additional we to additional of was

Operator

closing to questions the at There floor Corning Instructions] now over would for further this I comments. no [Operator to Painter turn are time. like

Corning Painter

Thank Okay. for you that.

on be to going one whole the you I'd just the to Ravenna So place. in thing plant volumes, came that of my on as was Josh, aimed in took mind at That initially response issue add, keep specialty. also invasion

over has that that so shifted capacity really And area. to the rubber

Just it. to just want us. day one with be modeling We your for your for I about thoughts other of everyone taking time thank area appreciate look, as you think to out that.But

Your And Orion.So Thank behind -- the the it's for last EPA have us of have time that, is your tremendous you. valuable. good one hard the work a capital, not the to just all but hope really and you distraction I rest just day. to time, describe just is with effort

Operator

teleconference. today's concludes This you. Thank

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

Orion Engineered Carbons (OEC) 15 Feb 242023 Q4 Earnings call transcript