Olin Pronounces 2nd Quarter 2024 Effects

Highlights

• 2nd quarter 2024 internet source of revenue of $74.2 million, or $0.62 in keeping with diluted proportion
• Quarterly adjusted EBITDA of $278.1 million
• Percentage repurchases of $106.0 million in 2nd quarter 2024

CLAYTON, Mo., July 25, 2024 /PRNewswire/ — Olin Company (NYSE: OLN) introduced monetary effects for the second one quarter ended June 30, 2024. 2nd quarter 2024 reported internet source of revenue was once $74.2 million, or $0.62 in keeping with diluted proportion, which compares to 2nd quarter 2023 reported internet source of revenue of $146.9 million, or $1.13 in keeping with diluted proportion. 2nd quarter 2024 adjusted EBITDA of $278.1 million excludes depreciation and amortization expense of $129.0 million and restructuring fees of $6.8 million. 2nd quarter 2023 adjusted EBITDA was once $351.1 million. Gross sales in the second one quarter 2024 have been $1,644.0 million, in comparison to $1,702.7 million in the second one quarter 2023.

Ken Lane, President and Important Government Officer, stated, “During the second quarter, the Olin team delivered a 15% sequential improvement in adjusted EBITDA. Our Chlor Alkali Products and Vinyls business benefited from seasonal demand improvement in the second quarter. The Epoxy business continued to improve sequentially as well, delivering higher margins and lower costs from our ongoing delivery of previously announced restructuring plans. At the same time, our Winchester business achieved higher military ammunition shipments and military project revenue, while commercial ammunition shipments were sequentially lower with higher propellant costs, resulting in a relatively flat performance versus the first quarter, as expected.”

Lane persevered, “As a result of Hurricane Beryl, Olin’s operations at its Freeport, Texas facility were disrupted in early July. Olin has safely returned many Freeport plants to operation. Wind damage to ancillary equipment has prevented the remainder from resuming production. Once this critical equipment is restored, those remaining assets, including our vinyl chloride monomer and phenol/acetone plants, will be restarted. We currently estimate that Olin’s third quarter 2024 adjusted EBITDA will be reduced by approximately $100 million due to incremental costs to restore operations, unabsorbed fixed manufacturing costs, and reduced profit from lost sales associated with the storm. Before considering the effects of Hurricane Beryl, we had anticipated our Chemical businesses’ third quarter 2024 adjusted EBITDA would have been comparable to second quarter 2024. We expect our Winchester business third quarter results to improve from second quarter levels with seasonally stronger commercial ammunition demand and higher military shipments and project revenue.”

Commenting at the complete while outlook Lane persevered, “The anticipated improvement in demand for our Chlor Alkali Products and Vinyls business has been slower to develop than expected earlier this year. Based on our current outlook and before considering the effect of Hurricane Beryl, we believe Olin’s second half 2024 adjusted EBITDA would have been comparable to first half 2024. We will continue to return value to our shareholders, as we maintain our disciplined capital allocation strategy, supported by our strong financial foundation and sustainable cash flow.”

SEGMENT REPORTING

Olin defines branch profits as source of revenue (loss) earlier than passion expense, passion source of revenue, alternative working source of revenue (expense), non-operating pension source of revenue, alternative source of revenue, and source of revenue taxes.

CHLOR ALKALI PRODUCTS AND VINYLS

Chlor Alkali Merchandise and Vinyls gross sales for the second one quarter 2024 have been $920.3 million, in comparison to $1,002.3 million in the second one quarter 2023. 2nd quarter 2024 branch profits have been $99.3 million, in comparison to $180.1 million in the second one quarter 2023. The $80.8 million trim in branch profits was once essentially because of decrease caustic soda pricing partly offset by means of reduced prices related to merchandise bought from alternative events, greater volumes, and decrease uncooked subject material and working prices. The Chlor Alkali Merchandise and Vinyls 2nd quarter 2023 branch gross sales and effects have been negatively impacted by means of the upkeep turnaround and next working problems with the vinyl chloride monomer plant on the Freeport, Texas facility to bring about greater prices and diminished take advantage of misplaced gross sales.  Chlor Alkali Merchandise and Vinyls 2nd quarter 2024 effects incorporated depreciation and amortization expense of $105.8 million in comparison to $113.3 million in the second one quarter 2023.

EPOXY

Epoxy gross sales for the second one quarter 2024 have been $317.7 million, in comparison to $333.8 million in the second one quarter 2023. The trim in gross sales was once essentially because of decrease product pricing, partly offset by means of advanced volumes. 2nd quarter 2024 branch loss was once ($3.0) million, in comparison to branch lack of ($0.5) million in the second one quarter 2023. The $2.5 million trim in branch effects was once essentially because of decrease pricing, partly offset by means of higher volumes and decrease uncooked subject material and working prices. Epoxy 2nd quarter 2024 effects incorporated depreciation and amortization expense of $13.4 million in comparison to $15.2 million in the second one quarter 2023.

WINCHESTER

In fourth quarter 2023, Olin finished the purchase of the White Flyer industry, which was once incorporated within the Winchester branch. White Flyer designs, manufactures and sells leisure entice, skeet, global and carrying clay goals. Winchester gross sales for the second one quarter 2024 have been $406.0 million, in comparison to $366.6 million in the second one quarter 2023. The rise in gross sales was once essentially because of greater global army gross sales, army challenge earnings, and White Flyer gross sales, partly offset by means of decrease industrial ammunition gross sales. 2nd quarter 2024 branch profits have been $70.3 million, in comparison to $64.7 million in the second one quarter 2023. The $5.6 million building up in branch profits was once essentially because of White Flyer profits and better army shipments and armed forces challenge earnings, partly offset by means of decrease industrial ammunition shipments and pricing and better propellant prices. Winchester 2nd quarter 2024 effects incorporated depreciation and amortization expense of $8.3 million in comparison to $6.3 million in the second one quarter 2023.

CORPORATE AND OTHER COSTS

2nd quarter 2024 fees to source of revenue for environmental investigatory and remedial actions have been $6.4 million in comparison to $13.0 million in the second one quarter 2023. The fees relate essentially to past remedial actions related to day production operations.

Alternative company and unallocated prices in the second one quarter of 2024 reduced $5.4 million in comparison to 2nd quarter 2023 essentially because of decrease incentive prices, together with mark-to-market on stock-based reimbursement, decrease legal-related prices, and a positive foreign exchange have an effect on.

LIQUIDITY AND SHARE REPURCHASES

The money stability on June 30, 2024, was once $182.1 million. Olin ended the second one quarter 2024 with internet debt of roughly $2.7 billion and a internet debt to adjusted EBITDA ratio of two.6 instances. Throughout the primary part 2024, internet debt higher by means of $229.0 million, essentially pushed by means of standard seasonal running capital. The rise in running capital was once $166.3 million in first part 2024. On June 30, 2024, Olin had roughly $1.0 billion of to be had liquidity.

Throughout 2nd quarter 2024, roughly 1.9 million stocks of habitual inventory have been repurchased at a price of $106.0 million. On June 30, 2024, Olin had roughly $0.8 billion to be had beneath its proportion repurchase authorization.

CONFERENCE CALL INFORMATION

Olin senior control will host a convention name to talk about 2nd quarter 2024 monetary effects at 9:00 a.m. Japanese year on Friday, July 26, 2024. Remarks might be adopted by means of a question-and-answer consultation. Related slides, which might be to be had the night earlier than the decision, and the convention name webcast might be available by the use of Olin’s website online, www.olin.com, beneath the second one quarter convention name icon. An archived replay of the webcast can also be to be had within the Investor Members of the family division of Olin’s website online starting at 12:00 p.m. Japanese year. A last transcript of the decision might be posted the upcoming industry week.

COMPANY DESCRIPTION

Olin Company is a well-known vertically built-in international producer and distributor of chemical merchandise and a well-known U.S. producer of ammunition. The chemical merchandise produced come with chlorine and caustic soda, vinyls, epoxies, chlorinated organics, lighten, hydrogen, and hydrochloric acid. Winchester’s main production amenities build and distribute carrying ammunition, regulation enforcement ammunition, reloading parts, miniature caliber army ammunition and parts, commercial cartridges, and clay goals.

Talk over with www.olin.com for more info on Olin.

FORWARD-LOOKING STATEMENTS

This conversation comprises forward-looking statements. Those statements relate to analyses and alternative data which can be in accordance with control’s ideals, positive guesses made by means of control, forecasts of past effects, and modern expectancies, estimates and projections concerning the markets and financial system wherein we and our numerous sections function. The statements contained on this conversation that aren’t statements of historic reality would possibly come with forward-looking statements that contain quite a lot of dangers and uncertainties.

We’ve impaired the phrases “anticipate,” “intend,” “may,” “expect,” “believe,” “should,” “plan,” “outlook,” “project,” “estimate,” “forecast,” “optimistic,” “target,” and diversifications of such phrases and related expressions on this conversation to spot such forward-looking statements. Those forward-looking statements come with, however aren’t restricted to, statements in regards to the Corporate’s intent to repurchase, from year to year, the Corporate’s habitual inventory. Those statements aren’t promises of past efficiency and contain positive dangers, uncertainties, and guesses, which can be tricky to expect and lots of of which can be past our keep watch over. Due to this fact, fresh results and effects would possibly range materially from the ones issues expressed or implied in such forward-looking statements. We adopt incorrect legal responsibility to replace publicly any forward-looking statements, whether or not on account of past occasions, fresh data or differently. The cost of money dividends is topic to the discretion of our board of administrators and might be motivated in luminous of then-current situations, together with our profits, our operations, our monetary situations, our capital necessities and alternative elements deemed related by means of our board of administrators. Going forward, our board of administrators would possibly trade our dividend coverage, together with the frequency or quantity of any dividend, in luminous of then-existing situations.

The hazards, uncertainties and guesses all in favour of our forward-looking statements, a lot of which can be mentioned in additional property in our filings with the SEC, together with with out limitation the “Risk Factors” division of our Annual Document on Method 10-Ok for the while ended December 31, 2023, and our Quarterly Stories on Method 10-Q and alternative studies furnished or filed with the SEC, come with, however aren’t restricted to, please see:

Trade, Trade and Operational Dangers

• sensitivity to financial, industry and marketplace situations in the US and in a foreign country, together with financial instability or a downturn within the sectors served by means of us;
• declines in moderate promoting costs for our merchandise and the provision/call for stability for our merchandise, together with the have an effect on of huge business capability or an imbalance in call for for our chlor alkali merchandise;
• unsuccessful execution of our strategic working type, which prioritizes Electrochemical Unit (ECU) margins over gross sales volumes;
• failure to spot, draw in, build, accumulation and encourage certified staff all over the group and skill to govern govt officer and alternative key senior control transitions;
• failure to keep watch over prices and inflation affects or failure to reach centered value discounts;
• our reliance on a restricted selection of providers for specified feedstock and services and products and our reliance on third-party transportation;
• the incidence of surprising production interruptions and outages, together with the ones happening on account of exertions disruptions and manufacturing hazards;
• publicity to bodily dangers related to climate-related occasions or higher severity and frequency of horrific climate occasions;
• availability of and/or higher-than-expected prices of uncooked subject material, power, transportation, and/or logistics;
• the failure or an interruption, together with cyber-attacks, of our data era programs;
• our incapability to finish past acquisitions or three way partnership transactions or effectively combine them into our industry;
• dangers related to our global gross sales and operations, together with financial, political or regulatory adjustments;
• our indebtedness and debt provider tasks;
• vulnerable business situations affecting our skill to agree to the monetary upkeep covenants in our senior credit score facility;
• antagonistic situations within the credit score and capital markets, restricting or combating our skill to borrow or elevate capital;
• the results of any declines in international fairness markets on asset values and any declines in rates of interest or alternative important guesses impaired to worth the liabilities in, and investment of, our pension plans;
• our long-range plan guesses no longer being learned, inflicting a non-cash impairment price of long-lived property;

Criminal, Environmental and Regulatory Dangers

• adjustments in, or failure to agree to, law or executive laws or insurance policies, together with adjustments relating to our skill to develop or utility positive merchandise and adjustments throughout the global markets wherein we function;
• fresh laws or population coverage adjustments in regards to the transportation of hazardous chemical substances and the protection of chemical production amenities;
• surprising results from authorized or regulatory claims and lawsuits;
• prices and alternative expenditures in huge of the ones projected for environmental investigation and remediation or alternative authorized lawsuits;
• numerous dangers related to our Pool Town U.S. Military Ammunition Plant agreement and function beneath alternative governmental words; and
• failure to successfully govern environmental, social and governance (ESG) problems and connected laws, together with weather trade and sustainability.

All of our forward-looking statements will have to be thought to be in luminous of those elements. As well as, alternative dangers and uncertainties no longer at the moment identified to us or that we believe immaterial may just have an effect on the accuracy of our forward-looking statements.

2024-11

SOURCE Olin Company