{"id":458542,"date":"2021-03-16T08:04:03","date_gmt":"2021-03-16T12:04:03","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=458542"},"modified":"2021-03-16T08:04:03","modified_gmt":"2021-03-16T12:04:03","slug":"olin-updates-first-quarter-outlook","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/olin-updates-first-quarter-outlook\/","title":{"rendered":"Olin Updates First Quarter Outlook"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n CLAYTON, Mo.<\/span>, March 16, 2021<\/span> \/PRNewswire\/ —\u00a0Olin Corporation (NYSE: OLN) announced today an updated outlook for the first quarter 2021.<\/p>\n

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\n \"Olin
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Olin’s Freeport, Texas<\/span> facility was affected by Winter Storm Uri<\/span> and was forced to halt production due to the lack of electrical power, natural gas, and other raw materials. \u00a0All of Olin’s Freeport<\/span> operations were impacted.\u00a0 In addition, production at Olin’s Plaquemine, Louisiana<\/span>; St. Gabriel, Louisiana<\/span>; Oxford, Mississippi<\/span>; and McIntosh, Alabama<\/span> facilities were also negatively impacted.\u00a0 As a result, by February 18, 2021<\/span>, Olin declared Force Majeure on all chemical product shipments from North America.\u00a0 While our facilities have returned to operation, product supply constraints are expected to continue.<\/p>\n

Prior to the financial impact of Winter Storm Uri<\/span>, Olin’s first quarter 2021 adjusted EBITDA was expected to be in the $400<\/span> to $425 million<\/span> range, which compares to fourth quarter 2020 adjusted EBITDA of $246.2 million<\/span> and first quarter 2020 adjusted EBITDA of $122.8 million<\/span>.\u00a0 Olin now expects first quarter 2021 adjusted EBITDA to be in the $475<\/span> to $500 million<\/span> range; this forecast includes a net one-time benefit associated with Olin’s customary financial hedges and contracts maintained to provide protection from rapid and dramatic changes in energy costs, partially offset by unabsorbed fixed manufacturing costs, reduced profit from lost sales, and storm-related maintenance costs.\u00a0 This first quarter 2021 outlook has further potential upside associated with the final settlement of these one-time items associated with Winter Storm Uri<\/span>.<\/p>\n

“During first quarter 2021, all of our businesses were able to amplify our ever-evolving winning model, which we expect to result in a significant improvement in forward quarterly adjusted EBITDA from fourth quarter 2020 levels,” remarked Scott Sutton<\/span>, Olin President<\/span> and Chief Executive Officer. \u00a0“Our dedicated employees are motivated and focused on exercising Olin’s leadership across its chemicals and ammunition landscape to enhance shareholder value.”<\/p>\n

\n COMPANY DESCRIPTION<\/b>\n <\/p>\n

Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition.\u00a0 The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid.\u00a0 Winchester’s principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.<\/p>\n

Visit\u00a0www.olin.com<\/a> for more information on Olin.<\/p>\n

\n Non\u2013GAAP Financial Measures <\/b>\n <\/p>\n

Olin’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net income (loss) plus an add-back for depreciation and amortization, interest expense (income), income tax expense (benefit), other expense (income), restructuring charges, goodwill impairment charges and certain other non-recurring items.\u00a0 Adjusted EBITDA is a non-GAAP financial measure.\u00a0 Management believes that this measure is meaningful to investors as a supplemental financial measure to assess the financial performance without regard to financing methods, capital structures, taxes, or historical cost basis.\u00a0 The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP and Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. <\/p>\n

Reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are omitted from this release because Olin is unable to provide such reconciliations without the use of unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including interest expense (income), income tax expense (benefit), other expense (income) and restructuring charges. Because of our inability to calculate such adjustments, forward-looking net income guidance is also omitted from this release. We expect these adjustments to have a potentially significant impact on our future GAAP financial results. <\/p>\n

\n FORWARD-LOOKING STATEMENTS<\/b>\n <\/p>\n

This communication includes forward-looking statements.\u00a0 These statements relate to analyses and other information that are based on management’s beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate.\u00a0 The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.<\/p>\n

We have used the words “anticipate,” “intend,” “may,” “expect,” “believe,” “should,” “plan,” “outlook,” “project,” “estimate,” “forecast,” “optimistic,” and variations of such words and similar expressions in this communication to identify such forward-looking statements.\u00a0 These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control.\u00a0 Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements.\u00a0 We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.\u00a0 The payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our board of directors.\u00a0 In the future, our board of directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.<\/p>\n

The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the “Risk Factors” section of our Annual Report on Form 10-K for the year ended\u00a0December 31, 2020, include, but are not limited to, the following:<\/p>\n

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\n Business, Industry and Operational Risks<\/u>
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