Olin Announces Fourth Quarter and Full-Year 2007 Earnings
Monday January 28, 7:47 pm ET
CLAYTON, Mo.--(BUSINESS WIRE)--Olin Corporation (NYSE: OLN - News) announced today that its fourth quarter 2007 income from continuing operations was $29.6 million, or $0.40 per diluted share, which compares to $15.6 million, or $0.22 per diluted share in the fourth quarter of 2006. Sales from continuing operations in the fourth quarter of 2007 were $404.8 million, compared to $247.1 million in the fourth quarter of 2006.
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Joseph D. Rupp, Chairman, President, and Chief Executive Officer said, “I am pleased that both our Chlor Alkali and Winchester businesses finished 2007 on a strong note. Chlor Alkali fourth quarter segment earnings were $68.1 million, which includes $20.9 million from the Pioneer operations acquired in August. Included in the Chlor Alkali segment earnings are approximately $5 million of realized synergies. In achieving these Chlor Alkali earnings we overcame lower operating rates reflecting both planned maintenance outages at seven plants and seasonally weaker demand. Winchester earned $2.7 million in the quarter and completed its best year since 1994. During the quarter, Winchester benefited from higher selling prices and stronger than expected demand, which more than offset higher commodity and manufacturing costs.
Earnings in the first quarter of 2008 are projected to be in the $0.50 per diluted share range. This forecast reflects a slight improvement in ECU pricing compared to the fourth quarter of 2007 as the most recent caustic price increase is implemented. Improvements in the current level of anticipated demand from the vinyls industry would favorably impact our projected earnings. Winchester results are expected to be about equal to the first quarter of 2007 and pension expense is expected to decline by approximately $3.0 million compared to the first quarter of 2007.”
Income from continuing operations in 2007 was $100.8 million, or $1.36 per diluted share, compared to income of $123.7 million, or $1.70 per diluted share in 2006. Sales from continuing operations in 2007 were $1.28 billion compared to $1.04 billion in 2006.
Fourth quarter 2007 results included a $1.3 million pretax receipt of a contingent payment associated with a prior year’s divestiture and a $1.0 million pretax reduction in stock-based compensation expense due to the sale of the Metals business. Fourth quarter 2007 results also included a $3.0 million pretax charge to adjust the asset retirement obligation previously recorded as required under Statement of Financial Accounting Standards (“SFAS”) No. 143, “Asset Retirement Obligations”. Fourth quarter 2006 results included a $6.0 million pretax insurance recovery related to Hurricane Katrina business interruptions. Full year 2006 results also included $0.7 million of pretax gains associated with real estate transactions and a $21.6 million reduction in income tax expenses associated with the settlement of the tax treatment of capital losses generated in 1997 and other tax matters. |
