Olin Announces First Quarter 2007 Earnings and Pension Plan Actions
Thursday April 26, 7:17 pm ET
CLAYTON, Mo.--(BUSINESS WIRE)--Olin Corporation (NYSE: OLN - News) announced today that its sales for the first quarter of 2007 were $765.7 million, compared to $725.1 million in the first quarter of 2006. Net income in the first quarter of 2007 was $23.1 million, or $0.31 per diluted share, compared to $33.7 million, or $0.47 per diluted share, in the first quarter of 2006.
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Joseph D. Rupp, Chairman, President, and Chief Executive Officer, said, "Winchester's first quarter pretax earnings of $8.1 million are double the first quarter of 2006 earnings and represent the best first quarter ever for the Winchester business. These results reflect the combination of improved volumes and improved pricing. Earnings of our Chlor Alkali and Metals businesses declined as both faced difficult operating environments during the first two months of the first quarter.
During the quarter we experienced unplanned outages at each of our Chlor Alkali plants that impacted shipment levels and reduced Chlor Alkali pretax earnings by approximately $5 million. These outages were primarily utility related and were resolved by mid March. Volumes in our Metals businesses declined by 13% compared to the first quarter of 2006, due to declines in shipments to automotive, electronics, and building products customers. These reduced activity levels did allow us to accelerate our planned Metals inventory reduction program, and as a result, first quarter 2007 results included a $5.3 million LIFO inventory liquidation gain. First quarter 2006 results included a $13.5 million LIFO inventory liquidation gain."
In the second quarter of 2007, Olin expects earnings to be in the $0.35 per diluted share range, which includes approximately $5.0 million of additional inventory liquidation gains resulting from planned inventory reductions in Metals. Chlor Alkali expects improved volumes compared to the first quarter from operating rates which are expected to be in the mid-90% range and higher pricing as announced caustic soda price increases flow through our contracts, offset in part by seasonally weaker results from Winchester. Metals earnings are expected to be comparable to the first quarter. |
