Wed. Nov 13th, 2019

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Worthwhile Stock:- Olin Corporation (NYSE: OLN)

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Olin Corporation (NYSE: OLN) newly stated financial results for the 3rd-quarter finished September 30, 2k19.

3rd-quarter 2k19 stated net income was $44.20M, or $0.270 for each diluted share, which compares to 3rd-quarter 2k18 stated net income of $195.10M, or $1.160 for each diluted share.  3rd-quarter 2k18 results included a pretax gain of $110.00M of insurance recoveries for environmental costs incurred and costs in prior durations.

3rd-quarter 2k19 adjusted EBITDA of $292.90M excludes depreciation and amortization cost of $156.00M, restructuring charges of $4.90M, and information technology integration costs of $24.50M.  3rd-quarter 2k18 adjusted EBITDA was $398.30M.  Sales in the 3rd-quarter of 2k19 were $1,576.60M in contrast to $1,872.40M in the 3rd-quarter of 2k18.

CHLOR ALKALI PRODUCTS AND VINYLS

Chlor Alkali Products and Vinyls sales for the 3rd-quarter 2k19 were $876.30M contrast to $1,051.10M in the 3rd-quarter 2k18.  3rd-quarter 2k19 segment earnings were $112.70M in contrast to $210.80M in the 3rd-quarter 2k18.  The declines in the 3rd-quarter sales and segment earnings contrast to the 3rd-quarter of 2k18 were mainly because of reduced caustic soda pricing and volumes.

The lower segment earnings contrast to prior year also reflected lower raw material and lower operating costs.  Chlor Alkali Products and Vinyls 3rd-quarter 2k19 results included depreciation and amortization cost of $122.20M in contrast to $122.30M in the 3rd-quarter 2k18.

EPOXY

Epoxy sales for the 3rd-quarter 2k19 were $511.60M contrast to $647.30M in the 3rd-quarter 2k18.  The decline in Epoxy sales was mainly because of lower product prices and lower volumes.  The 3rd-quarter 2k19 segment income was $24.20M contrast to $31.10M in the 3rd-quarter 2k18.

The decline in Epoxy segment earnings was mainly because of lower product prices, partially offset by lower raw material costs, mainly benzene and propylene, and lower operating costs.  Epoxy 3rd-quarter 2k19 results included depreciation and amortization cost of $26.90M contrast to $25.20M in the 3rd-quarter 2k18.

WINCHESTER

Winchester sales for the 3rd-quarter 2k19 were $188.70M in contrast to $174.00M in the 3rd-quarter 2k18.  The incline in sales was mainly because of higher commercial sales.  3rd-quarter 2k19 segment earnings were $13.90M in contrast to $10.30M in the 3rd-quarter 2k18.

The incline in segment earnings was mainly because of higher commercial ammunition volumes and lower commodity and other material costs, partially offset by lower selling prices.  Winchester’s 3rd-quarter 2k19 results included depreciation and amortization cost of $5.20M in contrast to $4.90M in the 3rd-quarter 2k18.

CORPORATE AND OTHER COSTS

3rd-quarter 2k19 credits to income for environmental investigatory and remedial activities were $0.80M in contrast to $110.80M in the 3rd-quarter 2k18.  The credits for the 3rd-quarter 2k18 included a gain of $110.00M from an environmental insurance-related settlement.  Without the settlement, credits to income for environmental investigatory and remedial activities would have been $0.80M in the 3rd-quarter 2k19 contrast to $0.80M in the 3rd-quarter 2k18.

Other corporate and unallocated costs in the 3rd-quarter of 2k19 raised by $0.70M contrast to the 3rd-quarter 2k18, mainly because of higher costs associated with the implementation of new enterprise resource planning, manufacturing, and engineering systems, and the related infrastructure costs, partially offset by lower legal fees associated with the environmental recovery actions in 2k18.

DIVIDEND AND SHARE REPURCHASES

On October 23, 2k19, Olin’s Board of Directors declared a dividend of $0.200 on each share of Olin common stock.  The dividend is payable on December 10, 2k19, to shareholders of record at the close of business on November 12, 2k19.  This will be the 372nd successive quarterly dividend to be paid by the Company.

On August 5, 2k19, Olin reached an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to repurchase $100.00M of Olin’s common stock.  Under this agreement, Olin paid $100.00M to Goldman Sachs and received an initial delivery of 4.30M shares in August 2k19.  The transaction had not settled as of September 30, 2k19; however, in October 2k19, we received about 1.40M additional shares as settlement of the transaction, which resulted in a total of about 5.70M shares repurchased under this ASR agreement.

Throughout 2k19, about 7.40M shares of common stock have been repurchased at a cost of $135.60M.  As of September 30, 2k19, Olin had about $314.00M available under its share repurchase authorization.

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