Olin Announces Second Quarter 2017 Earnings And Reiterates Full Year 2017 Guidance

SEGMENT REPORTING

Olin defines segment earnings as income (loss) before interest expense, interest income, other operating income (expense) and income taxes and includes the earnings of non-consolidated affiliates in segment results consistent with management's monitoring of the operating segments.

CHLOR ALKALI PRODUCTS AND VINYLS

Chlor Alkali Products and Vinyls sales for the second quarter 2017 were $865.1 million compared to $733.0 million in the second quarter 2016.  The increase in the second quarter sales compared to the prior year was primarily due to increased caustic soda and ethylene dichloride prices.  Second quarter 2017 segment earnings of $52.8 million improved compared to $30.7 million in the second quarter 2016, primarily due to higher pricing of caustic soda and ethylene dichloride and lower operating costs, partially offset by approximately $75 million of additional maintenance costs, unabsorbed fixed manufacturing costs, and reduced profit from lost sales associated with the turnarounds and outages.  Electricity costs, driven by higher natural gas prices, and ethylene costs were also higher year-over-year.  Chlor Alkali Products and Vinyls second quarter 2017 results included depreciation and amortization expense of $106.6 million compared to $103.4 million in the second quarter 2016.

EPOXY

Epoxy sales for the second quarter 2017 were $492.0 million compared to $450.0 million in the second quarter 2016.  The increase in Epoxy sales was primarily due to higher product prices and increased volumes.  The second quarter 2017 segment loss was $8.1 million compared to breakeven in the second quarter 2016.  The Epoxy segment earnings decline was principally due to higher raw material costs, primarily benzene and propylene, partially offset by higher product prices and improved volumes.  Epoxy second quarter 2017 results included depreciation and amortization expense of $22.8 million compared to $23.0 million in the second quarter 2016.

WINCHESTER

Winchester sales for the second quarter 2017 were $169.4 million compared to $181.0 million in the second quarter 2016.  Second quarter 2017 segment earnings were $19.0 million compared to $31.2 million in the second quarter 2016.  The decrease in sales and segment earnings was primarily due to lower shipments to commercial customers reflecting lower demand for pistol, rifle, and shotshell ammunition, partially offset by higher military sales.  The segment earnings reduction was also associated with a less favorable product mix and higher commodity and other material costs in the second quarter 2017 compared to second quarter 2016.  Winchester second quarter 2017 and 2016 results both included depreciation and amortization expense of $4.5 million.

CORPORATE AND OTHER COSTS

Pension income included in the second quarter 2017 Corporate and Other segment was $10.7 million compared to $12.6 million in the second quarter 2016.

Second quarter 2017 charges to income for environmental investigatory and remedial activities were $1.8 million compared to $2.4 million in the second quarter 2016.  These charges relate primarily to remedial and investigatory activities associated with former waste sites and past operations of the legacy Olin businesses.

Other corporate and unallocated costs in the second quarter 2017 increased by $5.8 million compared to the second quarter 2016, primarily due to increased consulting costs, higher legal and litigation costs, and an unfavorable currency impact.

DIVIDEND

On July 27, 2017, Olin's Board of Directors declared a dividend of $0.20 on each share of Olin common stock.  The dividend is payable on September 11, 2017, to shareholders of record at the close of business on August 10, 2017.  This will be the 363^rd consecutive quarterly dividend to be paid by the Company.

CONFERENCE CALL INFORMATION

Olin management will host a conference call to discuss second quarter 2017 earnings at 10:00 A.M. ET on Tuesday, August 1, 2017.  The call, along with associated slides, which will be available one hour prior to the call, will be accessible via webcast through Olin's website, www.olin.com.  An archived replay of the webcast will also be available on Olin's Investor Relations website beginning at 12:00 P.M. ET.  A final transcript of the call will be posted the day following the event.

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 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.  These statements may include statements regarding the October 2015 transaction to acquire the business (the Acquired Business) from The Dow Chemical Company (TDCC), the expected benefits and synergies of the transaction, and future opportunities for the combined company following the transaction.  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," "project," "estimate," "forecast," "optimistic," and variations of such words and similar expressions in this communication to identify such forward-looking statements.  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.  Relative to the dividend, 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, 2016, include, but are not limited to, the following:

• sensitivity to economic, business and market conditions in the United States and overseas, including economic instability or a downturn in the sectors served by us, such as ammunition, vinyls, urethanes, and pulp and paper, and the migration by United States customers to low-cost foreign locations;
• the cyclical nature of our operating results, particularly declines in average selling prices in the chlor alkali industry and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
• higher-than-expected raw material and energy, transportation, and/or logistics costs;
• our substantial amount of indebtedness and significant debt service obligations;
• weak industry conditions could affect our ability to comply with the financial maintenance covenants in our senior credit facilities and certain tax-exempt bonds;
• our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
• failure to control costs or to achieve targeted cost reductions;
• the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
• new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
• changes in legislation or government regulations or policies;
• economic and industry downturns that result in diminished product demand and excess manufacturing capacity in any of our segments and that, in many cases, result in lower selling prices and profits;
• complications resulting from our multiple enterprise resource planning (ERP) systems;
• the failure or an interruption of our information technology systems;
• unexpected litigation outcomes;
• costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
• the integration of the Acquired Business may not be successful in realizing the benefits of the anticipated synergies;
• the effects of any declines in global equity markets on asset values and any declines in interest rates used to value the liabilities in our pension plan;
• fluctuations in foreign currency exchange rates;
• adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
• failure to attract, retain and motivate key employees;
• our assumptions included in long range plans not realized causing a non-cash impairment charge of long-lived assets;
• the effects of restrictions imposed on our business following the transaction with TDCC in order to avoid significant tax-related liabilities; and
• differences between the historical financial information of Olin and the Acquired Business and our future operating performance.

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.

2017-16

Olin Corporation
Consolidated Statements of Operations(a)
		Three Months			Six Months
		Ended June 30,			Ended June 30,
(In millions, except per share amounts)		2017	2016		2017	2016
Sales		$1,526.5	$1,364.0		$3,093.6	$2,712.2
Operating Expenses:
Cost of Goods Sold		1,404.1	1,236.9		2,797.8	2,412.3
Selling and Administration		80.0	79.3		168.2	167.4
Restructuring Charges (b)		8.5	8.2		16.7	101.0
Acquisition-related Costs (c)		4.4	16.3		11.4	26.5
Other Operating Income (Expense) (d)		0.3	(0.2)		(0.1)	10.7
Operating Income		29.8	23.1		99.4	15.7
Earnings of Non-consolidated Affiliates		0.5	0.4		1.0	0.6
Interest Expense		52.5	47.6		104.9	96.1
Interest Income		0.4	0.5 Werbung Mehr Nachrichten zur Olin Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire Premier Miton Global Renewables Trust Plc - Dividend Declaration 25.04.24 - PR Newswire International Business Machines Corp - Doc re Form 8-K SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59