Chemical distributor Olin Q1 sales slip 8.3%

25 Apr '14

2 min read

Olin Corporation announces First Quarter 2014 earnings. Olin declares that its first quarter 2014 net income was $29.5 million, or $0.37 per diluted share, which compares to $40.5 million, or $0.50 per diluted share in the first quarter of 2013. Sales in the first quarter of 2014 were $577.4 million compared to $630.0 million in the first quarter of 2013.

First quarter 2014 results included pretax restructuring charges of $1.0 million, an unfavorable income tax adjustment of $1.6 million associated with a March 31, 2014 change in a state tax law, and approximately $6 million of one-time, weather related, out of pocket costs in the Chlor Alkali and Chemical Distribution businesses during the quarter.

Joseph D. Rupp, Chairman, President, and Chief Executive Officer said, "The Olin Board of Directors approved a three year, eight million shares repurchase program. With our current financial profile and our outlook for 2014 and beyond, this program will allow us to be a consistent, steady and opportunistic buyer of our shares.

"The high level of commercial demand that was experienced by Winchester in 2013 continued in the first quarter of 2014, and Winchester generated the second highest level of quarterly sales and segment income in its history. In addition, the commercial backlog at the end of the quarter remained above $400 million, which is significantly higher than the pre-surge March 31, 2012 commercial backlog of $137 million. During the first quarter of 2014, the Chlor Alkali business experienced lower chlorine and caustic soda shipments compared to the first quarter of 2013.

“These were partially offset by higher first quarter 2014 shipments of bleach, hydrochloric acid, and potassium hydroxide compared to the first quarter of 2013. First quarter 2014 ECU netbacks declined compared to the first quarter of 2013 reflecting lower caustic soda prices. First quarter 2014 Chemical Distribution shipments declined compared to the first quarter of 2013 and were negatively impacted by the weather in the Midwest.

"First quarter 2014 adjusted EBITDA was $91.8 million and we continue to forecast that full year adjusted EBITDA will be in the $375 million to $425 million range.

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Olin

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