Olin 3Q Profit Up on Sales, Tax Benefit
Friday October 27, 10:05 am ET
Olin 3rd-Quarter Profit Jumps 79 Percent on Increased Revenue, Benefit From a Tax Settlement
CLAYTON, Mo. (AP) -- Chemicals and metals products maker Olin Corp. said its third-quarter profit surged 79 percent due to increased revenue and a benefit from a tax settlement.
Late Thursday, the company said net income for the quarter rose to $56.2 million, or 77 cents per share, from $31.4 million, or 44 cents per share, in the prior-year period.
This year's results include a $24.8 million reduction in income tax expense, as well as the impact of a scheduled five-day outage at the McIntosh Chlor Alkali facility, including the SunBelt partnership, and shorter planned outages at the Augusta and Charleston Chlor Alkali facilities. Last year's results include $18 million for environmental recoveries and $900,000 for a gain on a land sale.
Analysts polled by Thomson Financial were expecting earnings of 37 cents per share, excluding 29 cents per share for the tax benefit.
Revenue grew 42 percent to $851.9 million from $599 million a year ago, beating analysts' estimate of $792.4 million. Chlor Alkali sales rose 12 percent to $169.1 million from $151.5 million, while metals revenue gained 67 percent to $578.2 million from $347.1 million. Winchester revenue increased 4 percent to $104.6 million from $100.4 million.
"Chlor Alkali experienced stronger-than-expected volumes during the quarter, while metals experienced better pricing than anticipated, and Winchester benefited from lower costs," said Joseph D. Rupp, chairman, president and CEO.
The company said it anticipates fourth-quarter earnings in the 25 cents per share range on normal seasonal weakness in its businesses. Its full-year Chlor Alkali and Winchester earnings are seen improving over year-ago levels.
Shares of Olin fell 73 cents, or 4.2 percent, to $16.72 in morning trading on the New York Stock Exchange.
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