Sales & net income slip at Olin Corp in Q4

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

CHLOR ALKALI PRODUCTS

Chlor Alkali Products sales for the fourth quarter of 2013 were $322.2 million compared to $336.4 million in the fourth quarter of 2012.  Lower selling prices more than offset higher sales volumes. 

Chlorine and caustic soda volumes increased 2.5% compared to the fourth quarter 2012 levels, fourth quarter 2013 hydrochloric acid volumes increased 15% compared to the fourth quarter of 2012, fourth quarter 2013 potassium hydroxide volumes increased 7% compared to the fourth quarter of 2012, and bleach volumes increased 6% in the fourth quarter of 2013 compared to the fourth quarter of 2012.

The fourth quarter 2013 ECU netback declined approximately 9% compared to the fourth quarter of 2012 netback.  Fourth quarter 2013 Chlor Alkali segment earnings declined from $54.3 million in the fourth quarter of 2012 to $30.7 million in the fourth quarter of 2013.  The year-over-year decline in segment earnings reflects lower ECU netbacks which more than offset increased shipments of chlorine, hydrochloric acid, bleach and potassium hydroxide.

CHEMICAL DISTRIBUTION

Chemical Distribution sales in the fourth quarter of 2013 were $80.7 million compared to $108.7 million in the fourth quarter of 2012.  Fourth quarter 2013 and 2012 sales primarily reflect caustic soda sales.  Chemical Distribution bleach sales are seasonally weak in the fourth quarter. 

Chemical Distribution had breakeven operating earnings during the fourth quarter of 2013 compared to operating earnings of $2.6 million in the fourth quarter of 2012.  Both caustic soda volumes and margins declined in the fourth quarter of 2013 compared to the fourth quarter of 2012.

Olin Corporation