PR Newswire
CLAYTON, Mo., April 27, 2023
Highlights
CLAYTON, Mo., April 27, 2023 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced financial results for the first quarter ended March 31, 2023.
First quarter 2023 reported net income was $156.3 million, or $1.16 per diluted share, which compares to first quarter 2022 reported net income of $393.0 million, or $2.48 per diluted share. First quarter 2023 adjusted EBITDA of $434.1 million excludes depreciation and amortization expense of $137.1 million and restructuring charges of $60.9 million. First quarter 2022 adjusted EBITDA was $710.9 million. Sales in the first quarter 2023 were $1,844.3 million compared to $2,461.4 million in the first quarter 2022.
Scott Sutton, Chairman, President, and Chief Executive Officer, said, "Our team's performance in the first quarter continues to demonstrate our winning model's resilience and ability to deliver significantly higher recessionary trough level adjusted EBITDA compared to Olin's historical approach. During first quarter, our Chlor Alkali Products and Vinyls team pivoted our market participation as caustic soda became the weaker side of the Electrochemical Unit (ECU) versus chlorine and chlorine derivatives. Olin realigned its operating rates and product purchases to match the caustic soda market conditions; thereby, refraining from selling incremental volume into poor-quality markets. Our Epoxy business continues to be challenged by European and North American demand weakness, aggravated by elevated Asian exports and a muted recovery of Chinese domestic demand. As expected, Winchester's decisive fourth quarter actions delivered sequential improvement in its segment results, which were further lifted by improved domestic and international military demand.
"In light of the on-going challenging global economic environment, we expect second quarter 2023 results from our Chemical businesses to be slightly lower than first quarter 2023 levels. As commercial customer inventories become more normalized, we expect our Winchester business second quarter 2023 results to increase sequentially from first quarter 2023. Overall, we expect Olin's second quarter 2023 adjusted EBITDA to be slightly lower than first quarter 2023 levels."
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
In first quarter 2023, the Blue Water Alliance joint venture began operations and are consolidated in our Chlor Alkali Products and Vinyls segment. Chlor Alkali Products and Vinyls sales for the first quarter 2023 were $1,117.1 million compared to $1,245.2 million in the first quarter 2022. The decrease in Chlor Alkali Products and Vinyls sales was primarily due to 12% lower volumes partially offset by higher pricing. First quarter 2023 segment earnings were $245.9 million compared to $328.6 million in the first quarter 2022. The $82.7 million decrease in segment earnings was primarily due to lower volumes partially offset by higher pricing across all products except vinyls intermediates, which declined. Chlor Alkali Products and Vinyls first quarter 2023 results included depreciation and amortization expense of $114.4 million compared to $123.1 million in the first quarter 2022.
EPOXY
Epoxy sales for the first quarter 2023 were $360.7 million compared to $789.5 million in the first quarter 2022. The decrease in Epoxy sales was primarily due to 31% lower resin and systems volumes and $184.7 million of lower cumene and bisphenol A sales. As part of the Epoxy business restructuring actions to right-size our global asset footprint to the most cost-effective asset base to support our strategic operating model, the Epoxy business ceased operations at our cumene facility in Terneuzen, Netherlands in first quarter 2023 and one of our bisphenol A production lines at our Stade, Germany facility in fourth quarter 2022. First quarter 2023 segment earnings were $21.4 million compared to $138.0 million in the first quarter 2022. The $116.6 million decrease in Epoxy segment earnings was primarily due to lower volumes and lower pricing, partially offset by lower raw material and operating costs, mainly decreased natural gas and electrical power costs. Epoxy first quarter 2023 results included depreciation and amortization expense of $14.5 million compared to $20.4 million in the first quarter 2022.
WINCHESTER
Winchester sales for the first quarter 2023 were $366.5 million compared to $426.7 million in the first quarter 2022. The decrease in Winchester sales was primarily due to lower commercial ammunition shipments, partially offset by higher military and law enforcement shipments. In fourth quarter 2022 and first quarter 2023, Winchester chose to preserve value by manufacturing and selling less commercial ammunition to adjust overfilled supply chains. First quarter 2023 segment earnings were $61.0 million compared to $118.9 million in the first quarter 2022. The $57.9 million decrease in segment earnings was primarily due to lower commercial ammunition shipments and higher commodity and other materials costs partially offset by higher military and law enforcement sales. Winchester first quarter 2023 and 2022 results included depreciation and amortization expense of $6.2 million.
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in the first quarter of 2023 increased $4.0 million compared to the first quarter 2022 primarily due to mark-to-market adjustments on stock-based compensation.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on March 31, 2023, was $176.0 million and we ended first quarter 2023 with net debt of approximately $2.6 billion and a net debt to adjusted EBITDA ratio of 1.2 times. During first quarter 2023, net debt increased by $211.5 million, primarily due to the funding of inventory built in advance of a planned maintenance turnaround and typical seasonal working capital. The increase in working capital was $244.4 million in first quarter 2023. On March 31, 2023, Olin had approximately $1.3 billion of available liquidity.
During first quarter 2023, approximately 3.6 million shares of common stock were repurchased at a cost of $206.1 million. On March 31, 2023, Olin had approximately $1.5 billion available under its current share repurchase authorization.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss first quarter 2023 financial results at 9:00 a.m. Eastern time on Friday, April 28, 2023. Remarks will be followed by a question-and-answer session. Associated slides, which will be available the evening before the call, and the conference call webcast will be accessible via Olin's website, www.olin.com, under the first quarter conference call icon. An archived replay of the webcast will also be available in the Investor Relations section of Olin's website beginning at 12:00 p.m. Eastern time. A final transcript of the call will be posted the next business day.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.
We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic," "target," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the Company's intent to repurchase, from time to time, the Company's common stock. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. The payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our board of directors. In the future, our board of directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2022, and our Quarterly Reports on Form 10-Q and other reports furnished or filed with the SEC, include, but are not limited to, the following:
Business, Industry and Operational Risks
Legal, Environmental and Regulatory Risks
All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.
2023-05
Olin Corporation | | | |
Consolidated Statements of Operations (a) | | | |
| | Three Months | |
| | Ended March 31, | |
(In millions, except per share amounts) | 2023 | 2022 | |
| | | |
Sales | $ 1,844.3 | $ 2,461.4 | |
Operating Expenses: | | | |
Cost of Goods Sold | 1,441.7 | 1,807.5 | |
Selling and Administration | 111.8 | 104.3 | |
Restructuring Charges (b) | 60.9 | 3.1 | |
Other Operating Income | 0.5 | - | |
Operating Income | 230.4 | 546.5 | |
Interest Expense | 42.4 | 32.9 | |
Interest Income | 1.1 | 0.4 | |
Non-operating Pension Income | 5.7 | 9.6 | |
Income before Taxes | 194.8 | 523.6 | |
Income Tax Provision | 40.8 | 130.6 | |
Net Income | 154.0 | 393.0 | |
Net Loss Attributable to Noncontrolling Interests | (2.3) | - | |
Net Income Attributable to Olin Corporation | $ 156.3 | $ 393.0 | |
Net Income Attributable to Olin Corporation Per Common Share: | | ||
Basic | $ 1.19 | $ 2.54 | |
Diluted | $ 1.16 | $ 2.48 | |
Dividends Per Common Share | $ 0.20 | $ 0.20 | |
Average Common Shares Outstanding - Basic | | 131.0 | 154.7 |
Average Common Shares Outstanding - Diluted | 134.4 Werbung Mehr Nachrichten zur Olin Aktie kostenlos abonnieren
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