Olin Corporation Reports 5% Decline in Q3 Sales, Net Loss, and Decreased Shareholders' Equity

Olin Corporation reported significant financial changes in its third quarter and year-to-date results for 2024, reflecting challenges across its business segments. For the three months ended September 30, 2024, total sales were $1,589.5 million, a decrease of 5% from $1,671.4 million in the same period of 2023. Year-to-date sales also declined by 7%, totaling $4,868.8 million compared to $5,218.4 million in 2023.

The Chlor Alkali Products and Vinyls segment experienced a notable decline, with sales dropping from $969.6 million in Q3 2023 to $871.6 million in Q3 2024, primarily due to lower pricing for caustic soda and the impact of Hurricane Beryl. This segment's income fell sharply from $172.3 million to $45.3 million in the same timeframe. The Epoxy segment reported a loss of $42.8 million for Q3 2024, worsening from a loss of $28.8 million in Q3 2023, attributed to reduced sales volumes and pricing pressures. Conversely, the Winchester segment saw an increase in sales from $380.2 million to $432.8 million, driven by higher military and commercial customer sales.

Operating income for the third quarter plummeted to $15.5 million from $166.0 million in the prior year, while year-to-date operating income decreased from $613.1 million to $249.2 million. The net loss attributable to Olin Corporation for Q3 2024 was $(24.9) million, a stark contrast to a profit of $104.1 million in Q3 2023. Year-to-date net income also fell significantly from $407.3 million to $97.9 million.

Olin's total assets decreased to $7,518.3 million as of September 30, 2024, down from $7,713.2 million at the end of 2023. Shareholders' equity also declined to $2,056.7 million from $2,232.4 million at year-end 2023. Long-term debt increased to $2,765.6 million, reflecting ongoing financing needs.

Strategically, Olin completed the acquisition of White Flyer Targets, LLC for $63.5 million in October 2023, enhancing its Winchester segment. The company has also undertaken restructuring actions, including operational cessations in its Epoxy segment due to weak demand and higher costs, with expected additional charges of approximately $10 million through 2025.

The company faced a negative pretax impact of $109.4 million from Hurricane Beryl, with anticipated residual effects of about $25 million in Q4 2024. Despite these challenges, Olin continues to maintain liquidity and compliance with its credit agreements, with $849.6 million available under its Senior Revolving Credit Facility as of September 30, 2024.