Olin Announces 3rd Quarter 2019 Results.

CLAYTON, Mo: Third Quarter 2019 Highlights

Net income of $44.2 million and adjusted EBITDA of $292.9 million

Full year 2019 net income forecast of $30 million to $59 million

Adjusted EBITDA 2019 forecast of $930 million to $980 million

Olin Corporation (NYSE: OLN) announced financial results for the third quarter ended September 30, 2019.

Third quarter 2019 reported net income was $44.2 million, or $0.27 per diluted share, which compares to third quarter 2018 reported net income of $195.1 million, or $1.16 per diluted share. Third quarter 2018 results included a pretax gain of $110.0 million of insurance recoveries for environmental costs incurred and expensed in prior periods. Third quarter 2019 adjusted EBITDA of $292.9 million excludes depreciation and amortization expense of $156.0 million, restructuring charges of $4.9 million, and information technology integration costs of $24.5 million. Third quarter 2018 adjusted EBITDA was $398.3 million. Sales in the third quarter of 2019 were $1,576.6 million compared to $1,872.4 million in the third quarter of 2018.

John E. Fischer, Chairman, President and Chief Executive Officer, said, "During the third quarter, the Chlor Alkali Products and Vinyls and the Epoxy businesses have experienced weakness in demand across several product areas, which negatively impacted both volumes and pricing. We expect further weakness in both volume and price in the fourth quarter. In the third quarter of 2019, adjusted EBITDA in the Winchester business improved from the third quarter of 2018 levels. This represents the first quarter since 2016 that the business has realized a year-over-year quarterly improvement in adjusted EBITDA.

"The previously disclosed award by the U.S. Army to Olin's Winchester business to operate the government-owned Lake City ammunition facility in Independence, Missouri is a significant event for Winchester. We expect this multi-year contract to increase Winchester's annual revenue by approximately $450 million to $550 million with a corresponding improvement in adjusted EBITDA of approximately $40 million to $50 million annually. The contract becomes effective in the fourth quarter of next year."

OUTLOOK

Olin believes the challenging demand and price environment that the Chlor Alkali Products and Vinyls and the Epoxy businesses have been facing will continue through the fourth quarter of 2019. As a result, Olin now expects full year 2019 net income of $30 million to $59 million, with...