Orion, the specialty-chemicals producer based in Houston, anticipates that certain results will fall at the lower end of its guidance due to a sluggish demand recovery.
Forecast for 2023 Results
On Monday, Orion stated that it projects its 2023 results to align with the lower end of its adjusted Ebitda guidance, which ranges from $330 million to $340 million. This forecast is slightly below the analysts’ consensus, as they expect adjusted Ebitda to reach approximately $337.6 million according to FactSet.
Slow Recovery and Downtime
The company attributes this lower forecast to a slower recovery in end markets and downtime caused by projects aimed at upgrading air emissions control technology.
Successful Upgrades to Air Emissions Control Technology
Recently, Orion successfully completed upgrades to air emissions control technology at all four of its U.S. carbon black plants. These upgrades were part of an initiative driven by the U.S. Environmental Protection Agency.
Gradual Market Recovery
While Orion acknowledges that demand is recovering, it highlights that it is building at a slower pace than initially anticipated across various markets.