HOUSTON - Orion Engineered Carbons S.A. (NYSE: NYSE:OEC), a prominent supplier of carbon black, announced the appointment of Natalia Scherbakoff as its new Chief Technology Officer. Scherbakoff, who brings a wealth of experience from her previous role as Vice President of Technology & Innovation at Trinseo (NYSE:TSE), will succeed David Deters. Deters, who has been instrumental in leading Orion's innovation efforts for nearly a decade, is set to retire at the end of 2024, and will work alongside Scherbakoff to ensure a smooth transition.
Scherbakoff's background includes significant positions at Plastic Omnium and Owens Corning (NYSE:OC), where she was involved in research innovation and global innovation respectively. She is also a non-executive board member at Clayens NP and a Forbes Technology Council member. Her educational qualifications include a Ph.D. and M.Sc. in Macromolecular Science from Case Western Reserve University, a Chemical Engineering degree from Mauá Engineering University, and an MBA from Getulio Vargas Foundation.
In her new role, Scherbakoff will be based in Cologne, Germany, at Orion's main innovation hub. She will oversee the company's technical centers across China, South Korea, and the U.S., and will be responsible for advancing Orion's innovation capabilities, including its Battery Innovation Center in Cologne.
Additionally, Scherbakoff will manage Orion's €12.8 million investment project, supported by €6.4 million in funding from the German government and the European Union. The project aims to develop a climate-neutral process for producing carbon black from alternative carbon sources, expected to enhance yield and throughput using circular feedstocks.
Orion Engineered Carbons S.A. is a leading global manufacturer of carbon black, used in various applications such as tires, coatings, inks, batteries, plastics, and other specialty products. The company boasts a history stretching back over 160 years and is known for its diverse production processes and commitment to sustainable solutions.
This announcement is based on a press release statement from Orion Engineered Carbons S.A.
"In other recent news, Orion S.A. has faced a significant financial setback due to a fraudulent scheme targeting an employee, resulting in a loss of approximately $60 million. The company is currently working with law enforcement and exploring all legal avenues to recover the lost funds. This incident has not affected Orion's operations or internal controls, as per the ongoing internal investigation.
Simultaneously, Orion's recent Q2 2024 earnings call revealed a mixed financial performance. Despite lower-than-expected EBITDA due to softer rubber segment volumes and adverse cogeneration, the Specialty business demonstrated resilience. The company reported volume increases and gross profit per ton meeting expectations, alongside a 3% overall volume improvement and a 17% recovery in specialty volumes.
In the midst of these developments, Orion S.A. is also negotiating with major customers for 2025 supply contracts, planning a slight leverage increase for share buybacks, and expecting lower capital spending. Despite challenges such as startup issues at a plant in China and reduced economic confidence in the region, the company remains committed to its operational and financial goals."
InvestingPro Insights
As Orion Engineered Carbons S.A. (NYSE: OEC) welcomes Natalia Scherbakoff as its new Chief Technology Officer, investors may be interested in additional financial insights about the company. According to InvestingPro data, OEC currently has a market capitalization of $1.04 billion and a P/E ratio of 13.19, suggesting a relatively modest valuation compared to some industry peers.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could signal confidence in the company's future prospects. This aligns with the company's focus on innovation and sustainable solutions, as evidenced by the appointment of Scherbakoff and the ongoing €12.8 million investment project for climate-neutral carbon black production.
However, it's worth noting that OEC's stock price has fallen significantly over the last three months, with a 3-month price total return of -26.46%. This decline might present an opportunity for investors who believe in the company's long-term potential, especially considering the company's efforts to advance its innovation capabilities.
Despite recent price volatility, analysts predict that OEC will be profitable this year, which is consistent with the company's reported profitability over the last twelve months. The company's revenue for the last twelve months as of Q2 2024 stood at $1.91 billion, with a gross profit margin of 22.44%.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on OEC's financial health and market position. There are 10 more InvestingPro Tips available for Orion Engineered Carbons, providing a deeper understanding of the company's financial situation and market trends.
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