Second quarter 2014 results included pretax restructuring charges of $2.3 million and a pretax gain for a contract matter of $1.0 million.  Second quarter of 2014 net income included after tax income from discontinued operations of $0.7 million, or $0.01 per diluted share.  This after tax gain reflected the favorable resolution of certain indemnity obligations related to our Metals business sold in 2007.  Second quarter 2014 net income was $37.3 million, or $0.47 per diluted share.

Joseph D. Rupp, Chairman and Chief Executive Officer said, "The high level of commercial demand that was experienced by Winchester in 2013 continued in the second quarter of 2014, and Winchester generated the second highest level of second quarter sales and segment earnings in its history.  We continue to see strong commercial demand in our system, especially for pistol and rimfire ammunition. 

“During the second quarter of 2014, the Chlor Alkali business experienced lower chlorine and caustic soda shipments and prices compared to the second quarter of 2013.  Second quarter 2014 ECU netbacks declined compared to the second quarter of 2013 reflecting both lower chlorine and caustic soda prices.  Second quarter 2014 Chemical Distribution shipments declined compared to the second quarter of 2013.  Second quarter 2014 adjusted EBITDA was $99.1 million.

"Third quarter 2014 net income is forecast to be in the $0.30 to $0.35 per diluted share range, which includes approximately $9.5 million of pretax expense for the call premium and unamortized deferred debt issuance costs related to the $150 million 8.875% Senior Notes due in 2019 that we intend to redeem in the third quarter. 

“We anticipate interest expense savings of approximately $10 million during the first year after the redemption of these notes.  Chlor Alkali third quarter 2014 earnings are expected to decline compared to the third quarter of 2013 due to lower ECU netbacks, partially offset by lower costs.  Last year's Chlor Alkali third quarter earnings included an $11.0 million favorable contract settlement.  Third quarter 2014 Chemical Distribution earnings are expected to improve from the second quarter of 2014, but be lower than the third quarter of 2013. 

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Olin Corporation