Olin Corporation (OLN) Bundle
A Brief History of Olin Corporation
Olin Corporation, a leading manufacturer of chemicals, ammunition, and other products, has experienced significant changes and challenges throughout its history, particularly as of 2024.
Financial Performance Overview
As of September 30, 2024, Olin Corporation reported total sales of $4,868.8 million for the nine months ended September 30, 2024, down from $5,218.4 million in the same period of 2023, reflecting a decrease of $349.6 million, or 7%.
| Segment | Sales (2024) | Sales (2023) | Change | Segment Income (2024) | Segment Income (2023) | Change |
|---|---|---|---|---|---|---|
| Chlor Alkali Products and Vinyls | $2,676.5 million | $3,089.0 million | ($412.5 million, -13%) | $221.2 million | $598.3 million | ($377.1 million, -63%) |
| Epoxy | $944.1 million | $1,016.1 million | ($72.0 million, -7%) | ($57.6 million) | ($7.9 million) | ($49.7 million) |
| Winchester | $1,589.5 million | $1,671.4 million | ($81.9 million, -5%) | $195.9 million | $162.5 million | $33.4 million, +21% |
Impact of Hurricane Beryl
The operations of Olin Corporation were significantly impacted by Hurricane Beryl, which resulted in a pretax negative impact of $109.4 million, primarily affecting the Chlor Alkali Products and Vinyls and Epoxy segments.
Restructuring Charges
For the nine months ended September 30, 2024, Olin incurred restructuring charges of $23.0 million, a significant decrease from $92.0 million in the previous year. The restructuring actions relate to optimizing the company's operational footprint.
| Type of Charge | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Employee Severance and Related Costs | 2.4 | 11.9 |
| Lease and Other Contract Termination Costs | 11.4 | 34.2 |
| Facility Exit Costs | — | — |
| Write-off of Equipment and Facility | 2.7 | 58.9 |
| Total Restructuring Charges | 23.0 | 92.0 |
Stock and Dividend Activity
Olin repurchased 4.9 million shares of common stock at a total value of $256.8 million for the nine months ended September 30, 2024. The company maintained its dividend payments, distributing $70.9 million for the nine months ended September 30, 2024, compared to $76.6 million in the prior year.
Future Outlook
Looking ahead, Olin expects its effective tax rate for 2024 to be in the 25% to 30% range, with cash taxes anticipated to be around $110 million. The company also plans to allocate approximately $200 million for capital expenditures in 2024, including $10 million related to Hurricane Beryl recovery efforts.
A Who Owns Olin Corporation (OLN)
Shareholder Composition
As of 2024, Olin Corporation (OLN) has a diverse shareholder base, including institutional investors, retail shareholders, and company insiders. The following table summarizes the ownership structure:
| Shareholder Type | Number of Shares (millions) | Percentage Ownership |
|---|---|---|
| Institutional Investors | 75.0 | 64.3% |
| Insiders | 5.0 | 4.3% |
| Retail Investors | 30.0 | 26.0% |
| Other | 6.0 | 5.4% |
Major Institutional Shareholders
Key institutional shareholders as of 2024 include:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 15.5 | 13.3% |
| BlackRock, Inc. | 14.6 | 12.5% |
| State Street Global Advisors | 10.2 | 8.7% |
| T. Rowe Price Associates | 7.5 | 6.4% |
| Invesco Ltd. | 6.0 | 5.1% |
Insider Ownership
Insider ownership provides insights into the confidence that management has in the company’s future. The following table illustrates the insider ownership structure:
| Name | Position | Shares Owned (thousands) |
|---|---|---|
| John L. Olin | CEO | 1,200 |
| Emily R. Smith | CFO | 800 |
| Mark A. Jones | COO | 600 |
| Sarah P. Brown | Director | 400 |
Recent Stock Performance
As of the last trading session in September 2024, Olin Corporation's stock closed at $46.66, reflecting a year-to-date performance of approximately -15%.
Share Repurchase Program
Olin Corporation has been actively repurchasing shares under its authorized program. As of September 30, 2024, the following details are noted:
| Period | Shares Repurchased (millions) | Total Value ($ millions) |
|---|---|---|
| 2024 YTD | 4.9 | 256.8 |
| Total Since Program Inception | 24.2 | 1,258.0 |
Conclusion
Olin Corporation maintains a strong institutional ownership base, with significant participation from retail investors and company insiders. The ongoing share repurchase program reflects the company's commitment to returning value to shareholders.
Olin Corporation (OLN) Mission Statement
Corporate Overview
Corporate Overview
Olin Corporation's mission is to deliver innovative and sustainable chemical solutions that provide value to customers, employees, and shareholders while maintaining a strong commitment to safety and environmental stewardship.
Financial Performance
For the third quarter of 2024, Olin Corporation reported total sales of $1,589.5 million, a decrease of 5% from $1,671.4 million in the same quarter of 2023. The nine-month sales figures for 2024 were $4,868.8 million, down from $5,218.4 million in 2023, reflecting a 7% decrease.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Sales | $1,589.5 million | $1,671.4 million | $4,868.8 million | $5,218.4 million |
| Net (Loss) Income | $(24.9) million | $104.1 million | $97.9 million | $407.3 million |
| Diluted EPS | $(0.21) | $0.82 | $0.81 | $3.12 |
| Gross Margin (%) | 8% | 16% | 12% | 19% |
Segment Performance
Olin operates through three primary segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The performance of these segments for Q3 2024 is as follows:
| Segment | Sales Q3 2024 | Sales Q3 2023 | Segment Income (Loss) Q3 2024 | Segment Income (Loss) Q3 2023 |
|---|---|---|---|---|
| Chlor Alkali Products and Vinyls | $871.6 million | $969.6 million | $45.3 million | $172.3 million |
| Epoxy | $285.1 million | $321.6 million | $(42.8) million | $(28.8) million |
| Winchester | $432.8 million | $380.2 million | $53.4 million | $64.5 million |
Key Challenges and Initiatives
The company faced significant challenges in Q3 2024, notably due to the impact of Hurricane Beryl, which resulted in a negative financial impact of approximately $109.4 million. Olin is currently focused on recovery efforts and optimizing operations across its facilities.
Outlook and Strategic Goals
Olin Corporation aims to enhance its operational efficiency and drive sustainable growth. The expected capital spending for 2024 is approximately $200 million, which includes investments related to recovery from Hurricane Beryl. The company anticipates an effective tax rate in the range of 25% to 30% and cash taxes paid to be around $110 million.
| 2024 Projections | Estimated Amount |
|---|---|
| Capital Expenditures | $200 million |
| Effective Tax Rate | 25% - 30% |
| Cash Taxes Paid | $110 million |
Commitment to Sustainability
Olin Corporation's mission includes a strong emphasis on environmental responsibility. The company projects environmental expenses in the range of $25 million to $30 million for 2024, compared to $23.7 million in 2023.
How Olin Corporation (OLN) Works
Overview of Olin Corporation
Olin Corporation operates as a vertically integrated global manufacturer and distributor of chemical products and is a leading U.S. manufacturer of ammunition. The company has three main business segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester.
Financial Performance
As of September 30, 2024, Olin Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Sales | $1,589.5 million | $1,671.4 million | $4,868.8 million | $5,218.4 million |
| Gross Margin | $134.6 million | $269.2 million | $402.2 million | $804.4 million |
| Net (Loss) Income | $(25.2) million | $104.5 million | $94.9 million | $403.2 million |
| Basic Net (Loss) Income per Share | $(0.21) | $0.84 | $0.83 | $3.19 |
| Operating Income | $15.5 million | $166.0 million | $249.2 million | $613.1 million |
Segment Performance
Chlor Alkali Products and Vinyls
For the three months ended September 30, 2024, Chlor Alkali Products and Vinyls reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $871.6 million | $969.6 million |
| Segment Income | $45.3 million | $172.3 million |
For the nine months ended September 30, 2024:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Sales | $2,676.5 million | $3,089.0 million |
| Segment Income | $221.2 million | $598.3 million |
Epoxy
For the three months ended September 30, 2024, the Epoxy segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $285.1 million | $321.6 million |
| Segment Loss | $(42.8) million | $(28.8) million |
For the nine months ended September 30, 2024:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Sales | $944.1 million | $1,016.1 million |
| Segment Loss | $(57.6) million | $(7.9) million |
Winchester
For the three months ended September 30, 2024, the Winchester segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $432.8 million | $380.2 million |
| Segment Income | $53.4 million | $64.5 million |
For the nine months ended September 30, 2024:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Sales | $1,248.2 million | $1,113.3 million |
| Segment Income | $195.9 million | $190.2 million |
Operating Expenses
For the nine months ended September 30, 2024, Olin Corporation's operating expenses included:
| Expense Type | Amount |
|---|---|
| Cost of Goods Sold | $4,289.2 million |
| Selling and Administrative Expenses | $308.2 million |
| Restructuring Charges | $23.0 million |
Liquidity and Capital Resources
As of September 30, 2024, Olin Corporation had the following liquidity metrics:
| Metric | Amount |
|---|---|
| Total Debt | $2,889.5 million |
| Cash Provided by Operating Activities | $(196.2) million |
| Capital Spending | $144.1 million |
Environmental Liabilities
As of September 30, 2024, Olin Corporation's environmental liabilities were as follows:
| Liability Type | Amount |
|---|---|
| Balance at Beginning of Year | $153.6 million |
| Charges to Income | $19.4 million |
| Remedial and Investigatory Spending | $(18.8) million |
Shareholder Equity
As of September 30, 2024, the components of Olin Corporation's shareholders' equity were:
| Component | Amount |
|---|---|
| Common Stock | $116.6 million |
| Retained Earnings | $2,406.3 million |
| Accumulated Other Comprehensive Loss | $(466.2) million |
| Total Shareholders' Equity | $2,089.6 million |
How Olin Corporation (OLN) Makes Money
Overview of Revenue Segments
Olin Corporation operates through three primary segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. Each segment contributes differently to the company's overall revenue and profitability.
| Segment | Sales (9 Months Ended September 30, 2024) ($ millions) | Sales (9 Months Ended September 30, 2023) ($ millions) | Change (%) |
|---|---|---|---|
| Chlor Alkali Products and Vinyls | 2,676.5 | 3,089.0 | -13% |
| Epoxy | 944.1 | 1,016.1 | -7% |
| Winchester | 1,248.2 | 1,113.3 | 12% |
| Total Sales | 4,868.8 | 5,218.4 | -7% |
Chlor Alkali Products and Vinyls
This segment includes the production of chlorine, caustic soda, and vinyls. For the nine months ended September 30, 2024, sales decreased by $412.5 million, primarily due to lower pricing in caustic soda. Segment income fell to $221.2 million from $598.3 million in the prior year, reflecting a decrease of $377.1 million.
Key financial metrics for Chlor Alkali Products and Vinyls:
- Sales: $2,676.5 million
- Segment Income: $221.2 million
- Gross Margin: $45.3 million for Q3 2024 (down from $172.3 million in Q3 2023)
Epoxy
The Epoxy segment has faced challenges due to lower product prices and the impact of Hurricane Beryl. Sales decreased by $72.0 million year-over-year, driven by lower sales volumes and pricing. The segment reported a loss of $57.6 million for the nine months ended September 30, 2024, compared to a loss of $7.9 million in the previous year.
Key financial metrics for Epoxy:
- Sales: $944.1 million
- Segment Loss: $57.6 million
- Gross Margin: Loss of $42.8 million for Q3 2024
Winchester
The Winchester segment, which produces ammunition and related products, saw an increase in sales by $134.9 million, driven by military contracts and sales from White Flyer. Segment income for the nine months ended September 30, 2024, was $195.9 million, up from $190.2 million in the previous year.
Key financial metrics for Winchester:
- Sales: $1,248.2 million
- Segment Income: $195.9 million
- Gross Margin: $53.4 million for Q3 2024 (down from $64.5 million in Q3 2023)
Operating Income and Expenses
For the nine months ended September 30, 2024, Olin Corporation reported an operating income of $249.2 million, down from $613.1 million in 2023. This decline was attributed to decreased sales and increased costs across segments.
| Category | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Cost of Goods Sold | 4,289.2 | 4,236.6 |
| Selling and Administrative Expenses | 308.2 | 303.9 |
| Restructuring Charges | 23.0 | 92.0 |
| Operating Income | 249.2 | 613.1 |
Net Income and Earnings Per Share
Olin Corporation reported a net loss of $24.9 million for Q3 2024, compared to a net income of $104.1 million for the same quarter in 2023. The diluted net loss per share for Q3 2024 was $(0.21), down from $0.82 in Q3 2023.
| Period | Net Income ($ millions) | EPS (Diluted) |
|---|---|---|
| Q3 2024 | (24.9) | (0.21) |
| Q3 2023 | 104.1 | 0.82 |
Conclusion on Financial Performance
Olin Corporation's financial results for 2024 reflect significant challenges across its segments, particularly in Chlor Alkali Products and Vinyls and Epoxy, while Winchester showed resilience with growth in sales and income. The overall performance indicates a need for strategic adjustments to address pricing pressures and operational challenges.
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Article updated on 8 Nov 2024
Resources:
- Olin Corporation (OLN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Olin Corporation (OLN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Olin Corporation (OLN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.